Taking you other halfs rent payments into account when applying for a mortgage

WickyWadd

Hi, first time I've posted so hopefully I'm doing it right.

Myself and my wife are first time buyers. To cut a long story short she has a very bad credit rating. She is with a debt management company and therefore mortgage lenders will not grant her a mortgage.

Anyway the question is - She pays (and has done for a while) a substantial amount into my bank account each month which then pays the rent and bills. Is there any way that this can be taken into account when applying for a mortgage?

I can get one in my name but it's not for that much (she's the one who earns more in our house).

Many thanks in advance.

libf

Either you include her on the mortgage, or her contributions to the mortgage can't be counted (and some lenders will consider her to be your dependent). Have you considered applying to a lender who deals in adverse credit histories so that you can both apply together? It may be at a higher rate, but then you might be able to get a higher amount. Approaching a mortgage broker would be a good plan.

getmore4less

Fix her debt problems then look for a mortgage.

How big is your deposit

WickyWadd

Thanks for your replies.

We are going to speak with another mortgage broker soon, we have already gone into this with one broker.

Our deposit isn't that big and would only amount to around 10% of the property value hence why adverse credit mortgages are probably off the table.

Although we would fix her debt problems with the deposit, we are both in our 30's, it's time to think about buying. The deposit is an inheritance and it's an amount we're very unlikely to come by ever again. Paying rent and saving is almost impossible (although we have managed to scrap a bit together) with the amounts landlords command these days.

Obviously we can get somewhere smaller for now but I think we may wish to move to something bigger if we start a family (again something which is slightly time limited).

It was more a question around whether I can use her contributions as part of my income I guess?

Thrugelmir

Use the money you have to fix the debt issues once and for all. Otherwise they'll simply continue to hold you back for even longer.

WickyWadd

Like I say I appreciate that is the 'sensible' thing to do but... Then I don't think we'll ever own which would be fine if... Landlords didn't have the power to boot you out so they can sell up (which has happened to us twice now) and therefore you kinda feel like you don't have a home. Which taking away the financial aspect is pretty damn upsetting.

I think personally I'd rather live somewhere less desirable/sizeable rather than paying off someone else's mortgage only to be rewarded with being made homeless : )

So back to my original question. Does anyone know if it's possible to count payments from her made to my bank account as income?

Thrugelmir

WickyWadd wrote: »

So back to my original question. Does anyone know if it's possible to count payments from her made to my bank account as income?

The straight forward answer is no it's not. Be little point in having the existing lending criteria if it were that easy to circumnavigate the rules.

libf

WickyWadd wrote: »

So back to my original question. Does anyone know if it's possible to count payments from her made to my bank account as income?

Either you include her on the mortgage, or her contributions to the mortgage can't be counted (and some lenders will consider her to be your dependent).

HappyMJ

WickyWadd wrote: »

Thanks for your replies.

We are going to speak with another mortgage broker soon, we have already gone into this with one broker.

Our deposit isn't that big and would only amount to around 10% of the property value hence why adverse credit mortgages are probably off the table.

Although we would fix her debt problems with the deposit, we are both in our 30's, it's time to think about buying. The deposit is an inheritance and it's an amount we're very unlikely to come by ever again. Paying rent and saving is almost impossible (although we have managed to scrap a bit together) with the amounts landlords command these days.

Obviously we can get somewhere smaller for now but I think we may wish to move to something bigger if we start a family (again something which is slightly time limited).

It was more a question around whether I can use her contributions as part of my income I guess?

You do know that landlord's don't make a huge profit on their investment. They have a mortgage to pay and many maintenance expenses on the property.

However, if you think landlords make so much then why don't you use your deposit and get a property to rent out...just in your name using your income. You'll get on the property ladder and in several years time once your higher earning OH gets those debts paid back and starts saving then you buy a house to live in together.

WickyWadd

I wasn't saying that landlords make a lot of money. I was merely commenting on the fact that renting is now ridiculously high with pretty much no security for the tenants once the initial contract is up. If I considered investing in property at this time a good idea I would be straight on it. But with what I could buy with my wages and how much I could then charge in rent on that place it wouldn't even cover the mortgage on it. So then saving and renting would be even harder.

I didn't think it would be possible to include the wife's payments to me but if you don't ask you don't get. Thanks everyone : )

ACG

The issue you may find is a lender preppared to lend to you and only you.
Most lenders require both parties of the marriage to be on the mortgage.

Trying to overcome that whilst possible is going to massively reduce your options.

Definitely no chance of including your wifes payment to you. Your getting all the benefits (1 applicant = reduced expenditure + an extra income) if its a one sided application, its weighted in the lenders favour....worth a try though like you say.