First time buyer - sole or joint

metal675

Hi,

I am married and a first time buyer and looking to buy my first property.

I will be contributing 100% to the deposit amount as my spouse has been in UK for less than a year and doesnt have any savings and the mortgage will be fully based on my finances alone. However when I look to remortgage in 2 years time her finances would have improved.

Can someone advise me if there is any advantage or disadvantage of me buying the property jointly or in sole name?

From whatever I know, the choice is

1 - Sole name on deed and mortgage

Better interest rate, translates to £25 less per month in mortgage payments. I.e. £300 annually better off.
If we look to buy a second property will she be considered a first time buyer?
Any advantage of this route? How does it work with regards to ownership in the event of death of the sole owner?

2 - Joint name on deed and mortgage

During re-mortgage her income could be considered, it is not now as she is relatively new to the country but in two years time I assume it will help in remortgage as she would have savings and few years employment history.
From what I understand, we can choose to be beneficial owners or tenants in common - any particular one better? and is any of that better than sole?

Ultimately, it comes to I am contributing 100% at purchase, but few years down the line my spouse will have built savings and can contribute in over payments an - what are pros and cons of each of those routes and any implications wrt to inheritance, death, will etc that I should be aware of?

Thanks in advance

metal675

Anyone got any thoughts please?

fiisch

As a married couple you are considered a single legal entity (how romantic!) for the purposes of property buying and selling, so there's no advantage regarding this point. If you buy in a sole name now, and then a BTL property down the line in your wife's name, she would still be eligible for the 3% BTL Stamp Duty tax...

I was in a similar position, in that I fronted the deposit for our first property. Ultimately, in the end, I elected to take the risk and buy in joint names as we were married, and should the worst happen, a wife/common law partner still has a claim against the property after 2 years anyway......

Tom99

Unless you don't think you will stay married for long I would buy in joint names.

metal675

Thanks both for your replies.

The main reason for my original post was that, with a sole mortgage I am getting a better interest rate compared to a joint one.

I was thinking, unless there are any significant advantages of getting in joint name, sole is better - that means I will save the extra £25-£30 per month.

This may be short term thinking and hence my query to solicit expert views especially thinking long term, in which case I am happy to pay the £25-£30 extra a month if the benefits of joint ownership outweigh the small cost it comes with.

Based on reply, it seems there is no difference?

Thanks again

xylophone

Do HSBC still offer joint proprietor/sole borrower mortgages?

https://forums.overclockers.co.uk/threads/mortgage-question-re-joint-ownership.18730948/page-2

https://forums.moneysavingexpert.com/discussion/5118119

metal675

xylophone, thanks but I am not looking at joint ownership and sole mortgage.

I am looking at sole ownership and mortgage or both as joint and querying advantages or disadvantage of one over other especially considering - remortgaging in future, death of sole owner, inheritance etc

Thrugelmir

Your wife will need to be declared on the mortgage application and as such will be considered a financial dependent, i.e. requiring your support.

metal675

Thrugelmir, yes I understand she will need to be declared. Just to add some more info to my query - She has only started working since 3 months and hence her income/ savings doesnt add any weight to the application for now.

metal675

Bump

Just wanted to check if anyone has any more thoughts please ?