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First time buyer - sole or joint ?

(4 Posts)
metallica121 Sun 15-Oct-17 16:44:03

I am married and a first time buyer and looking to buy my first property.

I will be contributing solely to the deposit amount as my spouse has only recently started working and doesnt have any savings and the mortgage will be fully based on my finances alone. However when I look to remortgage in 2 years time spouse's finances would have improved.

Can someone advise me if there is any advantage or disadvantage of me buying the property jointly or in sole name?

Option 1 - Sole name on deed and mortgage

This give me a better interest rate, translates to £25 less per month in mortgage payments. I.e. £300 annually better off.

If I go down this route and we look to buy a second property will my spouse be considered a first time buyer?
Any advantage of this route? How does it work with regards to ownership in the event of if I die?

Option 2 - Joint name on deed and mortgage

From what I understand, we can choose to be beneficial owners or tenants in common - any particular one better? and is any of that better than sole?

Ultimately, it comes to I am contributing 100% at purchase, but few years down the line my spouse will have built savings and can contribute in over payments an - what are pros and cons of each of those routes and any implications wrt to inheritance, death, will etc that I should be aware of?

delilahbucket Sun 15-Oct-17 22:19:33

As you are married, if you apply solely in your name, your spouse will be classed as a dependent if he is not contributing towards the payments. A lot of mortgage providers will not allow another adult to live in the property and be unconnected to the mortgage application.

metallica121 Sun 15-Oct-17 23:27:27

Thanks, the mortgage broker I spoke to advised that it will not be an issue with just one person on the mortgage as long as the deed is in sole name.

So basically the bank will want as many people on the mortgage are on the deed.

The choice I have is to have the title deed and mortgage in sole name or have both in joint. My query was if any one of them has a distinct advantage over the other ?

johnd2 Thu 19-Oct-17 15:36:36

We went for both because it didn't feel right doing it another way.
Sole name if it's cheaper would be financially better, but do take into account a small amount of work later to amend the deeds. As long as you both feel comfortable with that.

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