Mortgage/deed advice please

mcdelarich

I am in process of going through with a mortgage - it is a single application as if I added my partner to it the multiples would be less - therefore leaving me with less amount to be able to borrow.

Can I still get my partners name on the deeds? Or does her name have to be on the mortgage to get her name on the deeds?

Thanks in advance

Rich

17Dave

Hi Rich
Not quite sure how the multiples can be less on a joint application.
Are you using a broker - if so ask them to explain, or the lender.

It is usually based on the number of salaries - e.g. sole income 3.5 times or 3 times joint. Does your partner have an income? If not it should not affect the multiple.

I'm no solicitor but I believe the deeds and mortgage must be in the same name. Also if you want to add a partner in the future you will incur additional solicitors fees.

Dan_Collins_2

Legal wise they can be different but I think lenders have an issue with it, they will have a hold on the property but not liable for the mortgage etc etc. However 2 incomes will mean more money so more borrowing!

jill2002

Some lenders now lend on affordability taking into account income of the person/people buying the property, then deducting the outgoings. Bear in mind that the outgoings for two people would be higher than one and there is your problem.

Yes, lenders insist on mortgage being the same as deeds.

worrypants

yes you are right lenders will lend less on joint application if one partner has no or small income.

When we bought in Feb this year we did it in husbands name only
I was not named on the deeds and in the contract where it asks if anyone living in the property over 18 besides the borrower tick no.

Not a lie as on the day the mortgage completed i was still packing previous home and did not join husband until the next day:rotfl:

as far as lender is concerned anything can change following completion eg loss of job, multiple partners etc etc etc its no concern of the lender once completion has taken place.

worrypants

17dave a bit of a worry that you are a mortgage advisor but not aware of afordability,income multiples etc;)


Rick

you can get your partner added to the deeds if you want, once completion has occured
a good solicitor should charge under £100 and lender about the same

Or just get a will to protect your partner instead.

jill2002

where it asks if anyone living in the property over 18 besides the borrower tick no.

This is totally incorrect.

The reason for the 'over 17' question is because the 'adult' living at the property who is not on the mortgage has to sign a Deed of Consent. This enables the adult to be legally removed from the property should the mortgage default. They have every right to get the borrower out and the Deed of Consent would allow them to also remove the other adults, so the person signing the Deed of Consent is basically giving up their Squatters Rights.

If you do not give this information to the mortgage lender then you have not disclosed all material facts :eek:

In respect of the deeds - I would expect a solicitor to know the rights of the mortgage lender and borrower and in most circumstances will not add anyone to the deeds who is not on the mortgage.

What if the borrower died? and the other party was on the deeds, but didn't owe the bank any money as they were not on the mortgage - how would the bank get their money back? This would definately NOT be allowed.

worrypants

jill you are right in saying that the sig is required for the lender re any default but my advice would still be if you want to borrow the max keep your partner out of the equation in this case

hey live on the edge a little:rotfl:

worrypants LLB

jill2002

Worrypants,

Putting the tick in that box to say there are over 17s living there has NO relevance whatsoever as to how much can be lent. In fact, the question is probably one of the last questions on the application form, once all decisions have already been made.

worrypants

jill please note my LLB:rolleyes:

didnt say it had however if op wishes to borrow max amount then tick no otherwise lender will take into account 2 mouths to feed on one wage and max mortgage

so in reality it does have an effect on amount lent

eg buyers solicitor also acts for lender, if application states single applicant and the mortgage deed states a wife/partner then lender will know
trust me I know what im talking about here

worrypants

also please remember mortgage offers can and do get withdrawn at the last minute if any new info comes to light