Single application and household outgoings

Rejast

My partner has applied for a single applicant mortgage and we have met with all kinds of differing advice from the same provider.
Can anyone please explain if what we are asking is unreasonable?
My partner works full time and earns £51k pa and I am currently on career break.
My partner has provided all of the money for the deposit for the new property and will be paying the mortgage.
I currently own the house we live in solely and intend to decorate it and put it on the market as soon as we have moved to the new property.
My partner has some credit card debt.
Do lenders need details of my savings and outgoings if he is making an application alone?
I can find no information on the lenders website which states they need my information however I was dragged into the application and subsequently my partners decision in principle has been retracted and we are currently arguing with the lender as they are now stating that my partner is responsible for paying my debt payments even though he has never done so and I have more than enough in savings to cover over 12 months of all of my commitments and lifestyle choices.
I am happy to provide more details if needed.

muhandis

1. Has your partner put you down as a dependent on the application?

2. Do you have a broker or are you trying to do it direct with the lender?

PS: If you are using a broker I'd say he/she's doing a poor job. If you're messing about with the lender, in your place I would go see a broker.

Rejast

1. Yes I have been named as a dependant as I would be moving with him. Some people at the lender have stated that as I am not party to the mortgage my saving/debts don't come into it. Others have said they have to treat my debts as his and my savings are ignored.

2.We are currently dealing direct with the lender after getting advice from broker

muhandis

If you have been named as a dependent then afaik some lenders (sometimes at the underwriting stage) will look at your circumstances in considering the application.

Having said that, I'm sure the Mortgage Brokers on this thread will comment on this aspect.

Rejast wrote: »

1. Yes I have been named as a dependant as I would be moving with him. Some people at the lender have stated that as I am not party to the mortgage my saving/debts don't come into it. Others have said they have to treat my debts as his and my savings are ignored.

In your place, instead of dealing with people at the lender, I would ask my broker to sort this out or find me another lender asap. What does the broker say about all this?

Rejast wrote: »

2.We are currently dealing direct with the lender after getting advice from broker

Edit: Ordinarily a lender might use XYZ criteria for processing an application. But often, at the underwriting stage they might come back asking for more information which wasn't specified in XYZ. Maybe that's what has happened in this case.

Rejast

We haven't dealt with the broker since our free consultation and advice. They advised that as we are not married and both our finances are separate that my circumstances would not be investigated.
As far as my circumstances, the lenders are completely ignoring that I have my own savings that maintain my debts/commitments/lifestyle choices and that we will only be maintaining 2 houses for a short period (me mine and my partner the new one) and that I will be returning to my job in September.

muhandis

He probably meant that the lender that he places you with would not ordinarily look into your circumstances.

Rejast wrote: »

We haven't dealt with the broker since our free consultation and advice. They advised that as we are not married and both our finances are separate that my circumstances would not be investigated.

From a quick search on these forums it appears that different lenders look at this situation differently. Also, at the underwriting stage they can pretty much ask for anything extra that they want assurance over, even if it wasn't part of the original application. A few relevant snippets below (other cases somewhat similar to yours with one party in a couple taking out a sole mortgage).

Again, if this looks like it's going nowhere, I would see a broker and get them to sort out a mortgage for me.

"Grey area this. Sometimes I find such cases go through unapposed, as long as a single party can support the dependants and new mortgage, but other times lenders have declined on the basis the non mortgaging party is a risk to the household budget managment."

"My wife applied for a mortgage in her sole name with 25% deposit and borrowing x2 basic salary. The bank was fine with this however the underwriters weren't so I had to put my name on the application too and take a 1% equity stake for the approval. This was two years ago."

"We went through a broker, and some Banks didn't want to take those circumstances, while others were just fine. Probably a good idea to get a Broker to do the legwork for you"

"Some lenders will insist the mortgage is in joint names, most are ok about it, provided, the party not on the mortgage is not contributing by way of deposit, and so will not have a claim over the property"

Rejast

Thanks for all your help.
It's just so annoying that they will take my debts into consideration but don't care about any savings etc.
We can prove that I have maintained myself and have funds to continue to do so.
I have considered clearing most of my debts down with my savings but I don't know if this would make me look more reliant on my partner for day to day living and how this would impact anything.
I just wish things were simple and all the rules were set out so you know before you start where you stand.

kingstreet

Which lender did the broker recommend and which one did you apply to direct?

Rejast

The broker didn't recommend one, he gave us a list of quite a few who would be suitable for our situation.
We applied direct to Nationwide.

Thrugelmir

Rejast wrote: »

As far as my circumstances, the lenders are completely ignoring that I have my own savings that maintain my debts/commitments/lifestyle choices and that we will only be maintaining 2 houses for a short period (me mine and my partner the new one) and that I will be returning to my job in September.

The bottom line is that you are a dependent of the mortgage applicant. Lenders therefore will take a pessimistic stance as a matter of internal policy. Mortgage lending is driven at a macro rather micro level. At the current time you are viewed as financially being dependent / linked in some way.

You could decide to keep the 2nd property and let it. If a buyer doesn't appear quickly.

Likewise your savings are just that, your savings. To do with as you wish.

As far as your employment is concerned. What matters is now.

The obvious question that is unanswered is your financial interest in the new property. Your partner has debt so are the savings actually theirs. Or something which has been engineered.

Rejast

Hi Thrugelmir,
I will have no interest in the new property. The deposit, funds for solicitors fees etc will all come from his share of the proceeds of the sale of his former marital home.
Sorry I don't quite understand what you mean by 'something which has been engineered' my savings have been accrued through exactly that, me saving my money. It has been a combination of ppi refunds, saving my wages whilst still working, and money given to be by an older relative 2-3 years ago.