Most married couples would rather make joint mortgage applications as opposed to a sole name mortgage. Over the years house prices have been on the rise and with house price inflation outstripping wage increases over the years, in most cases, you can only afford a house if you have two salaries coming in.
Maybe you are married and are looking for a specialist to apply for a mortgage. Sometimes there will come a time where an applicant need to make an application in their sole name as one salary may very well be enough. There are also other other reasons why one of the applicants doesn’t want to go on the application. Here we will take a look at some of these.
One of the applicants may have had a credit problem in the past, something like a bankruptcy or a CCJ. This could get in the way of them obtaining a mortgage. With this in mind, providing the spouse or partner is not connected to that issue, then you could possibly take this as an option.
The person looking to do this would need to be careful to try and avoid creating a financial association with their partner. If not, they could risk their credit score being affected by it, harming their chances of obtaining a mortgage themselves.
Couples generally get a lower maximum borrowing capacity, as opposed to if the working applicant took out the mortgage in their sole name. This sort of thing can occur if only one member of the couple is working.
The mortgage calculation can also depend on age. For example, if you have a 50 year old who is buying with a younger partner, then it’s possible that if they have a good income, the younger partner could go down as the sole applicant.
Lenders will look at the type of mortgage you are applying for and the deposit you are able to put down for it. If you have a large deposit, 30% or more as opposed to 5%, this may work in your favour for the mortgage application.
Stamp duty or other tax implications can often be the driving force behind someone opting to take out a mortgage in their sole name.
Some Lenders have stricter rules about married applicants doing mortgages in a joint name, meaning some have to be a sole applicant against their own wishes. The likely reason for this is because they are concerned that this could in some way affect their security in the future, especially if a couple were to split up down the line. Luckily not all Lenders share this unpopular view.