Mortgage Appllication - Dependants

MoneyWorries2014

Hello
We are thinking of buying a house next year. I went to my bank to enquire about mortgages, to have an idea how much I can borrow. Our situation is that I work full time and partner looks after our 3yo son. We would apply for a mortgage based on my salary only.
The MA told me that even though we're only considering my salary, it's better to put OH as a joint applicant. Otherwise he would classed as another dependant, significantly reducing the amount I could borrow. The amount I got offered is what we need, so I was very happy. The problem is OH has some outstanding debt on a Debt Repayment Plan. I guess this will affect our application? I've asked him to get a copy of his credit report to see what the status is, but I'm worried now. Thanks

kingstreet

Some lenders insist on a joint application in such circumstances, some don't.

You will find a sole application would enable you to borrow more, but you might have problems if your partner is contributing to the deposit.

If you have been through a joint credit search, your finances are now associated and this may cause you problems in future if your partner's credit history is poor.

Speak to an independent broker about how best to approach this and about disassociating yourself from your partner, if applicable.

ACG

MoneyWorries2014 wrote: »

The problem is OH has some outstanding debt on a Debt Repayment Plan. I guess this will affect our application? I've asked him to get a copy of his credit report to see what the status is, but I'm worried now. Thanks

Did you mention this in the meeting?

MoneyWorries2014

Hi. When I went to the bank I said OH doesn't work so I want to apply for a mortgage on my name only. The guy entered the number of dependants as 1 in the simulator (they did a soft search with my name only, and 1 dependant). Once we got the result, he explained that the reason he put 1 dependant only was that it was better to add OH as a joint applicant, otherwise the amount would be reduced. I didn't really think much about it until later, when I came home and realised if we do a joint application, they will credit check us both. My credit rating is good, we don't have joint accounts or anything, but we do live together. I'm talking to a Mortgage Broker this afternoon, will see what he advises. We plan to get a mortgage next year in the summer, my meeting with the bank was just to have an idea of how much I could borrow. Thanks.

amnblog

Top work from the Bank.

'I want to apply in my name only'

'OK, but I'll just add your Partner to manipulate the affordability on the system'

Thrugelmir

MoneyWorries2014 wrote: »

Hello
The problem is OH has some outstanding debt on a Debt Repayment Plan. I guess this will affect our application?

With no income how are the repayments being met.

kingstreet

MoneyWorries2014 wrote: »

we don't have joint accounts

Which means you were not financially associated before, but you will be following the search by "your bank."

Bonfire_Bride

Have you submitted the full application yet??


Your finances will be linked and this could have a detrimental affect on your application.

MoneyWorries2014

No, I haven't submitted any application yet; it was just a soft search with my name only- he wasn't included in my discussions with the bank.

Bonfire_Bride

I'm not able to advise any further but maybe one of the brokers on here can suggest your next steps?

MoneyWorries2014

Thank you all. Yes, I'll be talking to a mortgage broker later today. Will see what he advises.