Married but want a single applicant mortgage

Bolto

Cscott139 said:

As you already own a property have you factored in the additional stamp duty you need to pay regardless of whether you go on the mortgage or not?

it’ll only be around £4K so that’s ok I think. We could save that over 2 months if we tighten our belts. 

Bolto

Thrugelmir said:

Bolto said:

Thrugelmir said:

Are you contributing to the deposit? 

Yes, well it’s our money that we’ve been saving. Does that make a difference to to application? We both have ISAs in our names that we’re filling up for a deposit. We’re at 30k collectively. Should we move my ISA into a savings account in his name?

Yes it does make a difference. Attempting to deceive the lender isn't advisable. Financial relationships are built on trust. 

I wouldn’t want to deceive the lender. I guess they could just use the money in his ISA and savings. We’d have less of a deposit but could smash the 8k off the mortgage as soon as we got it so it’s the same thing in the long run I guess 

Cscott139

Bolto said:

Cscott139 said:

As you already own a property have you factored in the additional stamp duty you need to pay regardless of whether you go on the mortgage or not?

it’ll only be around £4K so that’s ok I think. We could save that over 2 months if we tighten our belts. 

That's good. Its a nasty surprise for most people.

Bolto

davidmcn said:

The OP however has said they already own a flat and are keeping it.

Not that it makes a difference, but it’s more that we’re lumbered with it. It’s in negative equity and so selling it isn’t an option at the moment. 

Thrugelmir

Bolto said:

davidmcn said:

The OP however has said they already own a flat and are keeping it.

Not that it makes a difference, but it’s more that we’re lumbered with it. It’s in negative equity and so selling it isn’t an option at the moment. 

Addressing the negative equity would make sense than saving for a deposit. You never know what financial circumstances may befall your tenant either. Walking away from a problem rarely solves anything. Merely compounds the pain at a later date. 

Bolto

Thrugelmir said:

Bolto said:

davidmcn said:

The OP however has said they already own a flat and are keeping it.

Not that it makes a difference, but it’s more that we’re lumbered with it. It’s in negative equity and so selling it isn’t an option at the moment. 

Addressing the negative equity would make sense than saving for a deposit. You never know what financial circumstances may befall your tenant either. Walking away from a problem rarely solves anything. Merely compounds the pain at a later date. 

I’m not walking away, it’s still very much there on our balance sheet. I just refuse to pay good money when I can just as easily sell it when the house price comes back up. We can easily cover the mortgage if the tenant walks away and we have a 3 month ‘reserve fund’ for this very reason (a lesson learned from a friend who found herself in that position).

Buying a house is our priority over selling the flat at the moment. 

kaMelo

What the OP proposes of a married couple taking out a mortgage in one name only is possible but with a caveat. The mortgage company want the contract to be between them and the borrower(s) only with no un-contracted third party getting in the way.
As a result they will probably require the person not on the mortgage to sign away all interests in and rights to reside in the mortgaged property.  This is to prevent a long drawn out eviction should the need ever arise in the future. 

If the OP is happy to do this then go for it.

Bolto

kaMelo said:

What the OP proposes of a married couple taking out a mortgage in one name only is possible but with a caveat. The mortgage company want the contract to be between them and the borrower(s) only with no un-contracted third party getting in the way.
As a result they will probably require the person not on the mortgage to sign away all interests in and rights to reside in the mortgaged property.  This is to prevent a long drawn out eviction should the need ever arise in the future. 

If the OP is happy to do this then go for it.

This is really helpful. Thank you. I’m more than happy to do this. 

tim_london

Hey OP.  Just did this very recently (I went with Halifax).

Me and my wife have perfect credit score.  The house we bought just needed around 70% of my max borrow limit and we thought it was a good idea to have just my name on it to reserve 'just in case' advantage should there be any first time buyer advantages in the future if we decide to move.  Let's say me and my wife are not into the prenup culture so we don't see an issue, but we didn't know at that point that lenders are twitchy about this.  My MA said it was ok.

Long story short the Halifax didn't even ask my wife to sign the zero interest declaration form even though they had the form on their website and listed it as something they'd usually ask for.
My solicitor did advise that we should sign a "Living Together Agreement" and/or "Declaration of Trust" to make the arrangement clear in case of separation.  It would have incurred additional cost (my solicitor quoted me £300).  

Bolto

tim_london said:

Hey OP.  Just did this very recently (I went with Halifax).

Me and my wife have perfect credit score.  The house we bought just needed around 70% of my max borrow limit and we thought it was a good idea to have just my name on it to reserve 'just in case' advantage should there be any first time buyer advantages in the future if we decide to move.  Let's say me and my wife are not into the prenup culture so we don't see an issue, but we didn't know at that point that lenders are twitchy about this.  My MA said it was ok.

Long story short the Halifax didn't even ask my wife to sign the zero interest declaration form even though they had the form on their website and listed it as something they'd usually ask for.
My solicitor did advise that we should sign a "Living Together Agreement" and/or "Declaration of Trust" to make the arrangement clear in case of separation.  It would have incurred additional cost (my solicitor quoted me £300).  

This is marvellous view. I’m not at all concerned about signing anything to waive my rights but it does feel like a strange thing to do! 

I’m glad to hear it’s Halifax. He banks with them so they’ll have a full record of his pay etc already!