FTB - Joint Account for Mortage/Bills. When should we apply for this?

maton91

Hello all,

Myself and my partner are FTBs which we haven't started yet. The plan moving forward for myself and my partner would be to have a joint account where we both have a standing order from current accounts where our salary is paid. This will be used to pay the mortgage/council tax/utility bills etc... we then have our own accouts to use for whatever we decide.

I am wondering when in the house purchase process this should be completed to ensure mortage applications aren't deplayed or jepordised.

Can anybody advise please? If it helps we will both be contributing to the deposit and will be providing our income details, bank statements etc... to a mortgage broker. If this ought to change to ensure a smooth process then please advise.

For example if it would be better to apply for a joint account after the purchase what happens before that, is the mortage from one account and only one of use techncially owns the property?

Thanks in advance!

K_S

@maton91 As part of the mortgage application process, your broker will ask you for bank account details from which the monthly direct debit will be taken.

So you could either have it open by then or give an existing account details and change it later on when you have the joint account open.

maton91

K_S said:

@maton91 As part of the mortgage application process, your broker will ask you for bank account details from which the monthly direct debit will be taken.

So you could either have it open by then or give an existing account details and change it later on when you have the joint account open.

Thanks for your swift reply.

Ok so it could be one of my accounts and then change to a joint account later on.

Does my or my joint account have to be with the same bank the mortgae lender if from (e.g. my or the joint account is with Halifax but the mortgage is with nationwide). Is there a fee involved with changing account details?

firsttimebuyerhelpme

Myself and my partner started our joint account just before we started looking for houses. We then had a few months of savings in there to cover the costs of solicitors fees etc. We found it easier as our mortgage broker just set up the monthly payments for the mortgage to come out of our joint account straight away. It seems more sensible to do this rather than having to set everything up in one account and then changing them all again a short while after? 

maton91

firsttimebuyerhelpme said:

Myself and my partner started our joint account just before we started looking for houses. We then had a few months of savings in there to cover the costs of solicitors fees etc. We found it easier as our mortgage broker just set up the monthly payments for the mortgage to come out of our joint account straight away. It seems more sensible to do this rather than having to set everything up in one account and then changing them all again a short while after? 

Thanks for your reply.

If we had a joint account before the application then would this account then be checked by the bank as par of the mortgage application process? Is it just another hoop to get through?

K_S

maton91 said:

K_S said:

@maton91 As part of the mortgage application process, your broker will ask you for bank account details from which the monthly direct debit will be taken.

So you could either have it open by then or give an existing account details and change it later on when you have the joint account open.

Thanks for your swift reply.

Ok so it could be one of my accounts and then change to a joint account later on.

Does my or my joint account have to be with the same bank the mortgae lender if from (e.g. my or the joint account is with Halifax but the mortgage is with nationwide). Is there a fee involved with changing account details?

@maton91 No it can be with any bank. I can't speak for every single lender but I've never come across a fee for changing the account details.

firsttimebuyerhelpme

Thanks for your reply.

If we had a joint account before the application then would this account then be checked by the bank as par of the mortgage application process? Is it just another hoop to get through?

No, I’m not sure what you mean by check it, but they only asked for statements from the bank accounts that our wages were paid into and the accounts our deposits were in.