Mortgage Wife name only

andycorleone

Hi, I'm self employed with less than 2 years of tax records. Mortgage advisor recommend to me  not been included on the mortgage application nor on the property deeds.  What consequences this may bring down the road?  for example I'm thinking in two extremes Death or Divorce? 

Whats_your_forte

You can go on the mortgage but with a nil income and negates the worries you have stated. Not too sure why they would have recommended such an action unless issues on the credit file which prevent you getting a mortgage

Neutrinno

Poor advice if you've been told that purely due to your self-employed records, of course I don't know the full facts of your case though, whether this is related to affordability or your credit history etc. There are lenders who will consider with 12 months self-employed history.
In terms of consequences down the line; You will not own the property. The property will  be owned solely by the person named on the deeds and/or mortgage (your wife). This does not mean you wouldn't have an interest in the property though. In the event of divorce, the property will go into what is often referred to as the “matrimonial pot”. The matrimonial pot effectively contains everything that each person owned separately and puts it together. This is because that as you are married, you both have an interest in each other’s assets.

When getting a divorce, the amount of interest that each person has in the matrimonial pot and in individual assets (such as the home) can be determined by the Court, who will consider a number of factors. These include the length of marriage, each person’s age, whether they have any children and their earning capacity. When dealing with the family home, the Court will also consider the intentions that each person has in respect of the property.

ACG

Depending on the details, there are lenders out there at good rates who will work off 1 years figures. 
It is difficult to know why your broker has said something and if that is the only reason. On the face of it, it seems lazy/poor advice but there could be other reasons for it.

If your income can not be used and it still passes affordability, joint application with a £0 income would do the job. If a joint application and 1 income fails affordability then there are lenders out there who will work on 1 years figures as mentioned. The thing you need to think about is what happens if something happens to your wife? You then need to get a mortgage on your income alone while grieving and hope you pass affordability. It may be unlikely but that does not mean it will not happen. 

andycorleone

Thanks for you replies. it only been 6 months since we move back after been outside the UK for 10 years. I tried searching myself on Experian and Equifax there is not record of me.  We are trying a bit over 4.5 Times the Salary of my wife alone. house is over 600K. so is not an easy mortgage scenario. Apparently lenders are picky in this situation. 

Thrugelmir

Credit history is retained for 6 years. Will take some time to re-establish your identities. Have you registered on the electoral role. 

Whats_your_forte

As said, focus should be boosting the credit profile or indeed looking at a mortgage with your Bankers on the basis that they should know you a bit better than the others. Small credit cards/Voters Roll etc should help the activity

Mortgage_Adviser

From the time I have applied for my own residential mortgage I remember that it was the case that the lenders would give me on my own more money than jointly with my non working wife.

As above there are lenders that would accept one year self employed but of the HIgh Street lender's there is only one that would so it migh be that with your partner going sole there are better deals available as opposed to those available on a joint application.

Thrugelmir

Mortgage_Adviser said:

From the time I have applied for my own residential mortgage I remember that it was the case that the lenders would give me on my own more money than jointly with my non working wife.

The non working partner is financialy dependent. Therefore impacts affordability. 

[Deleted User]

Halifax are most common lender where it has a big difference. 

Joint application with non working partner will be a lot less than a sole application with a financial dependant

My own first mortgage was with Halifax when my wife was a student, she wasn't named on it as affordability took more of a hit than just being a financial dependant.