Whether to add spouse to deeds and mortgage

brokemum1

Hoping for some insight, please...

Although we are happily married, when we took out a mortgage in 2014, my husband was a SAHD, and I was employed full time,  so we were advised by our financial adviser to purchase and mortgage in my name only. At the time I was on a temporary contract, which he also said made lenders reluctant, but I got a mortgage with Halifax, in my name only. 

Since then,  our circumstances have changed. I am now self employed, part -time (~10-11k per annum) while he is employed full-time ( ~25k per annum).

Because of my low income and self employed status, and because the mortgage is still solely in my name, every time our deal is coming to an end,  the financial adviser tells us that I don't pass the other lenders' checks, and the best I can get is a product transfer. 

It's been fine so far,  but is it time to now do a transfer of equity and bring my husband's name onto the deeds and mortgage? I know there is a fee for changing the title deeds, and there would presumably be solicitor fees, but I'm most worried about the mortgage. Would it help us find a better mortgage, if it was in both names, or would it make it harder or more expensive? 

I saw an article on a solicitor's website that says, "When adding someone to the mortgage, the current lender will charge additional interest for the extra borrowing. For example, if you borrow £100,000 but add a person to the loan who only owes £50,000, then the lender will charge an additional 5% interest per year."

I couldn't really get my head around what this means in real terms?

If it would increase our payments by lots, is there any issue with leaving it as it is, in one name only? 

Or would it be well worth it financially,  to change to a joint mortgage?

Our remaining loan is about £100,000, and we have 27 years remaining on the term.

Thank you if you are able to offer any words of wisdom. 

K_S

@brokemum1 When is your current Halifax fix ending?

I would just wait for when it's about 6 months to the end of the fix and then speak to the broker about what options you have for a remortgage (new lender) in joint names. 

If you have options that would save you money compared to staying with Halifax, you could just do a remortgage with transfer-of-equity at that stage.

You don't necessarily need to already have a joint mortgage to do the above, I hope that makes sense.

If your broker then says that you don't have options outside Halifax then I don't see why you'd want to go through the effort and expense of doing a transfer of equity. In fact when you try to add Mr on to the mortgage, the lender might (I'm not sure about Halifax but some other lenders will do for a ToE) need you to pass affordability as well.

brokemum1 said:

Hoping for some insight, please...

Although we are happily married, when we took out a mortgage in 2014, my husband was a SAHD, and I was employed full time,  so we were advised by our financial adviser to purchase and mortgage in my name only. At the time I was on a temporary contract, which he also said made lenders reluctant, but I got a mortgage with Halifax, in my name only. 

Since then,  our circumstances have changed. I am now self employed, part -time (~10-11k per annum) while he is employed full-time ( ~25k per annum).

Because of my low income and self employed status, and because the mortgage is still solely in my name, every time our deal is coming to an end,  the financial adviser tells us that I don't pass the other lenders' checks, and the best I can get is a product transfer. 

It's been fine so far,  but is it time to now do a transfer of equity and bring my husband's name onto the deeds and mortgage? I know there is a fee for changing the title deeds, and there would presumably be solicitor fees, but I'm most worried about the mortgage. Would it help us find a better mortgage, if it was in both names, or would it make it harder or more expensive? 

I saw an article on a solicitor's website that says, "When adding someone to the mortgage, the current lender will charge additional interest for the extra borrowing. For example, if you borrow £100,000 but add a person to the loan who only owes £50,000, then the lender will charge an additional 5% interest per year."

I couldn't really get my head around what this means in real terms?

If it would increase our payments by lots, is there any issue with leaving it as it is, in one name only? 

Or would it be well worth it financially,  to change to a joint mortgage?

Our remaining loan is about £100,000, and we have 27 years remaining on the term.

Thank you if you are able to offer any words of wisdom.