Moving home - removing wife from extra borrowing

Mr_Adam

Hello

My wife and I recently remortgage our home but are now looking to move (sod's law). We have been told by our bank Sainsburys that we can't port our mortgage until our existing mortgage is 6 months old, even though we have been in the property over 6 years.

Anyway, my wife has recently stopped working and so has £0 earnings. She is on the existing mortgage.

We need to borrow a fair bit more money in order to make the move we want. Based on Sainsburys online calculator we should be ok to borrow the additional money off my earnings alone. However when we add her as a second party earning £0, the amount we can borrow drops substantially.

My question is - for the additional borrowing am I able to remove her from the equation? We would therefore have 2 mortgages, one with her and then the additional with just me.

Or would it be easier to remove her from the first one? Is this even possible? She was earning £0 when we remortgaged so its not like her earnings were used in the initial calculation.

Any help you can offer would be great. Sainsburys won't talk to me about porting until the 6 month window is up in August.

kingstreet

The property and mortgage will have to be in your sole name.

Check with the lender it will allow a port from joint to sole in these circumstances. Some won't, some will.

Some lenders also don't accept sole applications from those who are married, so check that too.

Finally, as she is beneficial owner of equity in the current property which will form your deposit, she is effectively gifting you some of the deposit and will live in the new property. Another thing some lenders have an issue with to check with yours. Check she is willing to legally disclaim her interest in writing.

Mr_Adam

kingstreet wrote: »

The property and mortgage will have to be in your sole name.

Check with the lender it will allow a port from joint to sole in these circumstances. Some won't, some will.

Some lenders also don't accept sole applications from those who are married, so check that too.

Finally, as she is beneficial owner of equity in the current property which will form your deposit, she is effectively gifting you some of the deposit and will live in the new property. Another thing some lenders have an issue with to check with yours. Check she is willing to legally disclaim her interest in writing.

Thanks - she's very happy to and will do what is needed to make sure we can borrow as much as possible to get the house she wants!

I guess we won't know until I speak to them in August.

kingstreet

BTW when you port, it's just the terms/rate, not the mortgage.

You'll have one new mortgage split into sub-accounts which reflect the different borrowing, at different rates, at different times.

Thrugelmir

Mr_Adam wrote: »

We need to borrow a fair bit more money in order to make the move we want. Based on Sainsburys online calculator we should be ok to borrow the additional money off my earnings alone. However when we add her as a second party earning £0, the amount we can borrow drops substantially.

Your wife will be treated as a financial dependent. You'll need to declare her on the mortgage application form. Lenders simply don't treat someone as if they don't exist. Would make their criteria worthless if they did.