Married but applying for mortgage on own and based on expenditure for one person

northernlad1984

I am married and looking to buy a property. My wife is currently registered as living with her mother while she completes her university studies over the next year or so.

I want to know, if I apply for the mortgage in my own name, if it's possible for the mortgage lender to base the size of the loan they will give on monthly expenditure covering one person (eg as if I was not married) rather than two?

In the application process I will obviously say I am married, but that only one person will be living at the property, and that my wife will be supported by her mother.

Has anyone tried something like this and has it worked? I'm aware the bank might find this unusual - what sort of questions am I likely to be asked to verify that I don't / won't be supporting my wife and she won't be living at the property?

If at some point my wife moves in and changes her address to mine, am I required to tell them and/or will the bank be able to spot it on the electoral roll etc? I can't imagine banks monitor who is living at every property they've lent against. Could this be a problem, or given that I've got the loan already is it likely to be ok as long as I keep up the monthly repayments?

ACG

Most lenders use ONS figures, meaning you will get assessed as a married couple regardless of where your wife lives.

Do you think an underwriter is going to believe your wife does not and will not live with you for the duration of your Mortgage (20-30 years?).

Also you will probably find your options are very limited, single application for married couples does not sit well with many lenders.

northernlad1984

Thanks for the quick reply.

On your last point, do you know why it does not sit well with many lenders?

I own a property overseas and much of my wealth is tied up in that, but I probably can't sell that until the end of 2018 (due to the tenancy contract for that property expiring then, as does the mortgage fix for which there's a hefty fee for ending early).

I realise they won't believe my wife won't live with me for 30 years, it's just for the next year until I can sell that property and then hopefully remortgage by injecting the resulting equity into my UK property, or trade up.

The plan is currently for her to live with her mother until she completes her studies in a year or so, but am also keen to know what the options would be for her to move in before that.

ACG

You are a family unit, why would you buy a house on your own? It is not normal. If it is not normal, then lenders will assume you are trying to avoid something - either get round affordability rules or keep her bad credit away from the lender. It would also be assumed that as a family unit whats yours is hers and vice versa, so the deposit would normally be seen as joint. Not every lender views it like that, but many do.

You take a Mortgage out for say 25 years, she plans to move in in 1 year, meaning you want them to underwrite the Mortgage based on the first year, not the next 24.

enthusiasticsaver

You will have to sign a document saying no one over the age of 18 will be living there and providing you do that I don’t suppose the bank will worry. Is your wife happy to have no financial interest in the house? Usually the size of loan is based on house value and income.

Thrugelmir

northernlad1984 wrote: »

Has anyone tried something like this and has it worked? I'm aware the bank might find this unusual - what sort of questions am I likely to be asked to verify that I don't / won't be supporting my wife and she won't be living at the property?

Lenders aren't going to change their internal policies to accomodate you. Your wife is a financial dependent. That's all that matters.

csgohan4

Your wife is never going to move in with you when you buy your house???? If not, she is not your wife, if she is, she is a dependant