1 income or 2

lottie3000

Just about to apply for a mortgage to buy a new house.

I earn 35k a year no dependants and only 2k on a 0% credit card, LTV is less than 60% and I'm looking at borrowing 105k. My husband is self employed so I'm thinking of applying on my income alone. What's peoples thoughts on this? I've received a mortgage in principle from HSBC for 109k but as its so close to what I'd like to borrow it makes me worry that they'll say no if I apply alone.

amnblog

Don't confuse a single application with a joint application with only one declared income.

The latter may be tricky on affordability, the former may not be acceptable to a Lender.

Can your husband not prove his income?

lottie3000

Hi, yes he can prove his income. Its just the self employes status. Before when we have applied for a mortgage he has been sub contracting regularly. But this financial year he hasn't had regular monthly amounts received. He's got tax returns for years and has received income this year. I'm just a worry wart!

I'm not confusing a single with a joint application, the mortgage in principle had him as a homemaker.

ACG

Do HSBC allow single applications for married couples? Very few lenders do.

lottie3000

Its a joint application without taking account of my husbands income and yes they do allow it. I think I'm just going to chat to my FA, I was just thinking it might be easier but then my husband will become a dependant so that will effect the application. I just wondered what people thoughts were really

DandelionPatrol

A single application means that he does not go on the deeds. As your current joint mortgage in principle gives just about enough, proceed with that - if you need more headroom, you can scrape a bit more with a small income on his part.

Single application from partners for the main home should only be used as a last resort to address a problem

ACG

Having no declared income does not make him a dependant - although as I do not deal with HSBC I do not know whether they view it like that.

lottie3000

I'm just worried after looking at reviews for HSBC that although I have a mortgage in principle after telling the full truth about circumstances other than not declaring any income for my husband that when I actually apply for the mortgage will be turned down for the value that we would like. I did tell them that he was self employed

I'm not sure if he becomes a dependant its just that it the MIP is at the lower end of what a lot of search engines say I could get on a single application?

cherry_three

Hi AGC, how does her husband having no declared income not make him a dependant, could you explain?
In similar position but we have used a Mortgage calculator and with one of us having zero income it brings down the affordability quite alot. Sorry to butt in.

ACG

He still has an income, its just not one they accept (by the sounds of it).

lottie3000

I haven't told them how much his income was, I explained that he was self employed and wondered if it would be easier just to include mine and he was put as a homemaker.