3 owners, one needs to borrow more and also got married

Sheveko

Yes, our situation is a bit complicated.

Myself and an unmarried couple bought a house together in 2011, which we own three ways as tenants in common with a deed of trust.

I need to borrow more to consolidate some debt, which is all fine except that Nationwide have since changed their policy and no longer accept multiple applicants, so we can't remortgage with them.

I've also since got married and when we made enquiries with YBS about remortgaging with them they said they have a policy written in stone that married partners need to be on the mortgage, which we don't want to do. (and it seems like a stupid policy because the bank's risk of not being able to repossess could be dealt with in our deed of trust)

It also made us realise that perhaps we've being a little remiss by not updating our deed of trust to deal with my new wife and her rights and obligations, or lack thereof.

So two questions:

1. Does anyone know of a mortgage provider that accepts multiple applicants and doesn’t require married partners to be on the mortgage?

2. How should we write my wife into the deed of trust. (she is to have no obligations and no rights, apart from in the event that I die, in which case she gets my share according to my Will). Should we write a separate agreement and refer the deed of trust to that?

Thrugelmir

The lender has no power or control over the deed of trust. As you are doing now you are making an amendment. There's nothing to stop you doing the same in the future. So it offers the lender no security

Pixie5740

I would avoid turning unsecured debt into secured debt by remortgaging. I wouldn't be particularly happy if I was part of the other couple and you were wanting to increase our mortgage debt to consolidate other debts you have racked up.

If you are hellbent on doing it though you will probably need to use a mortgage broker.

getmore4less

If I was one of the co-owners I would be telling you no way.

You have been getting debt to pay the mortgage.
(you may not think that but that's is what you are doing)

Sheveko

Pixie5740 wrote: »

I would avoid turning unsecured debt into secured debt by remortgaging. I wouldn't be particularly happy if I was part of the other couple and you were wanting to increase our mortgage debt to consolidate other debts you have racked up.

If you are hellbent on doing it though you will probably need to use a mortgage broker.

3/4 of the debt was racked up in agreement with the other two to finish off our refurbishment. The LVT will still be very low and my proportion of the debt, with the additional borrowing, won't be more than a third of the value of the house.

It is less than ideal because £15K of it is interest free credit card debt (apart from fees, although the latest transfer I did was fee-free too). The problem is it's significant enough to cause problems if I get to a point where I can no longer transfer it onto other 0% cards for some reason or another (interest rates go up, cards get outlawed, whatever)

The remaining £5K is student loan debt from another country where interest rates are significantly higher than they are here, so I'm losing money there.

What's triggered this decision is that we're planning to have a baby next year but at the moment I'm having to put every spare penny on debt, with no savings, no safety cushion and no disposable income. I'd like to be in a position to save up some cash and make some more investments before we have a kid.

Sheveko

getmore4less wrote: »

If I was one of the co-owners I would be telling you no way.

You have been getting debt to pay the mortgage.
(you may not think that but that's is what you are doing)

Some of the debt is from an existing student loan (accruing much higher interest than our mortgage), the rest of the debt was created to finish the refurb of our house, in agreement with the other two.

Sheveko

Thrugelmir wrote: »

The lender has no power or control over the deed of trust. As you are doing now you are making an amendment. There's nothing to stop you doing the same in the future. So it offers the lender no security

Fair point. Perhaps building societies just have more stringent lending criteria than banks?

Thrugelmir

Sheveko wrote: »

Fair point. Perhaps building societies just have more stringent lending criteria than banks?

The DoT is a matter between you and the other parties. Nothing to do with the lender at all.

As for a mortgage provider speak to a broker. As lenders do vary in their approach.

Mojisola

Sheveko wrote: »

2. How should we write my wife into the deed of trust. (she is to have no obligations and no rights, apart from in the event that I die, in which case she gets my share according to my Will).

Why do you need to change the deed of trust?

You own one-third of the property. If you die, she will inherit it.

getmore4less

Sheveko wrote: »

Some of the debt is from an existing student loan (accruing much higher interest than our mortgage), the rest of the debt was created to finish the refurb of our house, in agreement with the other two.

some of the debt is theirs in your name,

Quite an import fact missing from the first post as it is not just you borrowing to pay the debt they are also borrowing to pay you back.

getmore4less

what does your trust deed say, if it did not cover marriage/partner for any of you and other people moving in, when set up it was incomplete.