Virgin Money refusing to add my Husband to the mortgage

jones87_2

Hello,

My house is worth £150,000 and the mortgage balance is £56,000 (37% LTV). The mortgage is £347/month with 15 months left on the deal.
I bought the house when I was single 9 years ago, my now Husband moved in 8 years ago and has given me half of the bills/mortgage via bank transfer each month since.

We recently married so we want both our names on the mortgage and deeds.

Virgin Money have declined the 'change of parties' application because:
1. My LTD company made a loss last year (My salary is £30,000 and I do not draw dividends, I take a salary instead), therefore they can not regard this as income.
2a. My Husband also works for the company (His salary is £25,000), therefore his income will not be considered.
2b. Regardless of who my husband worked for, his salary would not support the mortgage alone. < huh? the mortgage is 17% of his gross salary.

My Ltd company has been trading 11 profitable years but the last 2 years have been tough with COVID but we're working through it.

I've already paid a solicitor £200 so I'm really annoyed by this, especially the last statement that his income alone, regardless of the source would not cover the mortgage.
Our mortgage is next to nothing, I don't get it.

Has anybody experienced this before?
Both our credit scores are in great shape.

macman

Your credit score is a fictitious number that lenders don't even see-ignore it.
Why do you want to make this change, given the mere 15 months left on the mortgage?
How do you intend to redeem the balance owing in 15 months, assuming this is an interest-only mortgage? £57k isn't 'next to nothing', it's more than your collective annual salaries.

housebuyer143

Just leave it alone. If you need to remortgage you can do it then or after you pay it off have the title deeds updated. If you are married yours will be his anyway.

K_S

@jones87_2 I can see where Virgin is coming from as lenders will check for affordability (as per their specific criteria and calculators) when doing a transfer of equity (adding someone to the mortgage). As both of you are dependent on the ltd.co. and it isn't showing a profit in the latest accounts, they won't consider it.

I would suggest that you leave it as it is for now. When it comes to the end of the fix, speak to a whole of market broker to understand what options (if any) you have to re-mortgage (to a new lender). If you do have options to re-mortgage, at that point you can do the transfer of equity along with the re-mortgage.

If your ltd.co. numbers are such that you don't have options to re-mortgage to a different lender, then you can just do a product-switch and stay with Virgin, that should involve no income assessment. As a mainstream lender, the options will be competitive so you won't be losing out by much by not being able to move lenders.

jones87_2 said:

Hello,

My house is worth £150,000 and the mortgage balance is £56,000 (37% LTV). The mortgage is £347/month with 15 months left on the deal.
I bought the house when I was single 9 years ago, my now Husband moved in 8 years ago and has given me half of the bills/mortgage via bank transfer each month since.

We recently married so we want both our names on the mortgage and deeds.

Virgin Money have declined the 'change of parties' application because:
1. My LTD company made a loss last year (My salary is £30,000 and I do not draw dividends, I take a salary instead), therefore they can not regard this as income.
2a. My Husband also works for the company (His salary is £25,000), therefore his income will not be considered.
2b. Regardless of who my husband worked for, his salary would not support the mortgage alone. < huh? the mortgage is 17% of his gross salary.

My Ltd company has been trading 11 profitable years but the last 2 years have been tough with COVID but we're working through it.

I've already paid a solicitor £200 so I'm really annoyed by this, especially the last statement that his income alone, regardless of the source would not cover the mortgage.
Our mortgage is next to nothing, I don't get it.

Has anybody experienced this before?
Both our credit scores are in great shape.

ACG

You already have a mortgage with them, if they leave it as is and something goes wrong they can say when you came to them everything fit. 
If they make changes now, they can no longer do that. In addition, if they added your husband and you no longer make repayments it would be his credit report getting dragged through the mud as well as yours. 

Appreciate what you are saying in that you are no worse off, but they are opening themselves up to a complaint they are not currently open to if they add him.