Applying for Mortgage with Person on DAS

risko

My wife and I are currently saving towards buying our first property, and I was looking for a wee spot of advice.

She has a stable full-time job and I am currently self-employed and we are both fairly comfortable with our incomes at the moment, but the main issue is that I am on a DAS and have another 3 1/2 years before this is fully paid off. As I am aware that it's going to be pretty hard getting a mortgage for at least six years after the DAS, we have decided that it's probably best to apply for the mortgage in solely my wife's name.

Our main issue is that as a sole applicant, I guess it will only take her income into consideration for how much we can borrow. Is there any way of also considering how much I am earning and contributing to paying off the mortgage? Without being too dodgy, of course!

Also, my wife is starting a help to buy ISA in her name to help with saving. I'm guessing that if it wasn't a joint application, there is little point in starting one in my name as well?

Thanks!

Daniel_Sparkes

Totally understand your situation. You're doing the right thing by preparing for the eventuality of purchasing a new property.

In terms of lenders requirements you will encounter issues finding a lender that will accept your current circumstance and due to this will discount your income from any application, but the potential of taking the mortgage in your wife's name only would be more promising.

You would need to consider how much a lender could lend based upon her sole earnings. You may want to speak with an advisor regarding this as they'll be able to give you a guide figure to give you an idea.

Daniel

rtho782

If you're self employed, you could form a limited company, pay yourself minimally, and then pay most of the profits to her via dividend payments, or employ her as "admin" and shift income to her this way.

After a couple of years you could get a mortgage taking her boosted income into account. Of course, you're basically trusting her with all your money....

risko

Thanks for the replies!

We certainly had considered whether we could somehow have her "employed" by me to boost her income. As it happens, our current rent and some bill payments are paid through her account, so we had thought about her treating those payments as a second income, even if it means she would be taxed on that income for a short while (she's also self-employed as well as being full-time employed, so could invoice for payment and declare it in her tax return).

But yes, I think it's maybe best to speak to a mortgage advisor to see what they think. We have done some of the online affordability calculators and think we might just be able to get the mortgage we need but it'd obviously be great to have some more wiggle room.