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Hi!

My husband and I are buying a new house. We will be joint tenants of the home but the mortgage will be in his name only. Nationwide are aware that I will be living in the house too. We did apply for a joint mortgage with another lender initially but we didn't even get to the application stage as I'm self employed and the bank weren't interested. Our broker then found us a better deal with Nationwide but this would be in my husbands name only. 

My question is, if I were to take credit out in my own name, could this impact the mortgage application? I usually wouldn't risk it but we are having a baby in a few months and need a safer car. 

We do have savings in a stocks and shares ISA we could use instead. I wanted to make sure we could make an informed decision and I knew you guys could help! 

Thank you. 

Comments

  • Sncjw
    Sncjw Posts: 3,496
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    Have you actually spoken to nationwide to see if you can be added to the mortgage. How long have you been self employed? 
    Mortgage free wannabe 

    Actual mortgage stating amount £75,150

    Overpayment start date 1/3/23.

    Starting balance £66,565.45

    Current balance £63,787.16

  • Yes I have thank you. I've been self employed for 4 years, the business is complicated. 

    I don't need to be added to the mortgage for affordability and we have been given the best rate available by Nationwide which is one of the best on the market right now for our LTV. 
  • ACG
    ACG Posts: 23,625
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    Just to clarify, by joint tenants you mean you will both be living in the property? You do not mean you will both legally own it? 

    Assuming that is the case that is fine and you taking out credit should not affect the application but I am not sure I would risk it if you are having to do things in a less than ideal way to get the mortgage. 

    But you have a broker, pick their brains. Thats what they are there for. 
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Why would you not want to be on the mortgage? Isn't marriage a partnership?
  • grumbler
    grumbler Posts: 58,629
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    Why would you not want to be on the mortgage? Isn't marriage a partnership?
    She does want. The bank doesn't.
    And, AFAIK, if she is contributing to the deposit, the bank will want a declaration that she can't claim any share of this property.

  • ACG
    ACG Posts: 23,625
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    I think Nationwide will "only" want a document signing that says if the mortgage is not paid for and the terms adhered to she can be evicted which is the same as if any adult were staying in the property. 
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • grumbler
    grumbler Posts: 58,629
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    edited 17 December 2023 at 1:48PM
    My past experience with Nationwide (e-mail from our broker):

    Whilst assessing the affordability for the mortgage with Nationwide there is now a problem. With adding XXXX to the mortgage it reduces the affordability (maximum mortgage) to £***** which is way less than what you need. This is die to the fact when adding another applicant without an income.

    With Nationwide there is also the issue that they stipulate that XXXX must be on the mortgage if part the savings / deposit for the purchase are in h** name.

    As such we cannot continue with Nationwide.

    Not that it makes any sense to me.
  • ACG said:
    I think Nationwide will "only" want a document signing that says if the mortgage is not paid for and the terms adhered to she can be evicted which is the same as if any adult were staying in the property. 
    Thank you. Between the solicitor and broker they have said that I will still be named on the title deeds but have to sign a document to say that I will not be responsible for paying the mortgage and the bank can take the house back if payment terms were not met. 

    Anyway, I think I have my answer from the replies and it doesn't appear to be clear cut. Therefore, we will just have to wait until we're in before taking out any credit as we're not willing to risk the purchase falling through. Hopefully we're in before the little one arrives 🤞

    Thanks everyone! ☺️


  • ACG
    ACG Posts: 23,625
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    ACG said:
    I think Nationwide will "only" want a document signing that says if the mortgage is not paid for and the terms adhered to she can be evicted which is the same as if any adult were staying in the property. 
    Thank you. Between the solicitor and broker they have said that I will still be named on the title deeds but have to sign a document to say that I will not be responsible for paying the mortgage and the bank can take the house back if payment terms were not met. 

    Anyway, I think I have my answer from the replies and it doesn't appear to be clear cut. Therefore, we will just have to wait until we're in before taking out any credit as we're not willing to risk the purchase falling through. Hopefully we're in before the little one arrives 🤞

    Thanks everyone! ☺️


    It might be worth just double checking that. 
    I dont think they can put different people on the deeds and the mortgage. 
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Hoenir
    Hoenir Posts: 1,295
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    What's the source of the deposit?  Use of funds in your name will result in you having a financial interest in the property. Should you become insolvent personally. Then your creditors have a right to claim this money under the Insolvency Acts. If necessary they can force the sale of the property through the courts to achieve this. There's a complexity beneath the surface as to why lenders act in the way they do. 
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