Dual income but declaring single salary for mortgage?

(23 Posts)
PassTheCremeEggs Tue 21-Jun-16 11:29:04

I need help please!

DH and I both work. Combined salary of 95k. But we have two kids and a big (3k a month) childcare bill.

We're about to apply to port our mortgage to a new house. We're stuck with our lender because we're fixed until Nov this year. Trouble is, lender will reassess affordability when looking at porting application.

We applied for our mortgage pre-children so obviously our circumstances have changed. With the childcare costs what they assess we can afford to borrow is much less (based on online calculator). But if we enter only DH's salary, and no childcare, we can borrow a lot more.

I'm giving up work in August and so there will be no childcare. Can we therefore declare only DHMs salary now and no childcare, even though that's not currently the situation? Bit confused here so any help greatly appreciated!

Bragadocia Tue 21-Jun-16 11:58:18

I would if I were you, on the basis that this will be the situation two months from now, it doesn't seem dishonest or misleading. By the time you actually move into the new house, it will only be a couple of weeks until that situation is actually in place. Do DH's bank statements have childcare payments coming out, though? If the mortgage company ask to see a recent statement, that might catch you out.

Glittershoes22 Tue 21-Jun-16 12:00:23

I'd get an independent mortgage broker they deal with interesting financial circumstances all the time and know the ins and outs of dealing with the banks in those kind of circumstances.

I think you will be fine but you want to avoid the "computer says no" syndrome that dealing direct with some numpty in the bank might produce.

Buckinbronco Tue 21-Jun-16 12:00:35

No they still take into account childcare. I have just got a sole mortgage despite being married and earn about the same as your combined salary and they reduced what they would offer by about £15k based on child care costs of £1k

They include it because your H is potentially still going to have to pay for childcare if you split up no matter what the arrangements now

If the mortgage is in one name the house will have to be in that name
Too- you'll have to sign your half over.

Buckinbronco Tue 21-Jun-16 12:01:51

If you can't move lender can't you wait the 2 months? Otherwise there are mortgage providers who don't take into account childcare

Muddlingalongalone Tue 21-Jun-16 12:04:05

I think I would as well. It doesn't seem any more misleading than applying on 2 salaries knowing you are going down to 1 in a couple of months??
If it's on the bank statements then you'll have to explain though.

NewLife4Me Tue 21-Jun-16 12:04:15

I didn't think you were allowed to do this.
My ds1 is a broker and he said you can do this if in one name only i.e the person not admitting their income doesn't go on mortgage.
Otherwise they want your combined salary.

whois Tue 21-Jun-16 12:10:04

I would do this, but maybe speak to a broker to see what they recomend?

Glittershoes22 Tue 21-Jun-16 12:11:58

I run my own business (yet am an employee of my company) and my income varies based on what I pay myself, therefore I was adamant my income wasn't included on our mortgage, so it isn't.

Wasn't an issue with our mortgage broker and the bank only wanted to see DHs bank statements and the mortgage is in both our names.

Donatellalymanmoss Tue 21-Jun-16 12:19:43

We were in a similar situation in that we applied for a mortgage based on childcare costs being down to zero once the mortgage would be in place. I second the advice to use a broker, ours was able to talk directly to various lenders and find one that was willing to account for both this and a couple of other circumstances that made us not look great on paper, even though we are perfectly able to service the debt, this meant that when we actually applied for our mortgage we were as certain as you can be that it was going to be approved

Also it's isn't true that securing a mortgage based only on one person's salary means that only one person gets the mortgage or that the house then in their sole ownership. Despite having minimal income, I am both joint on the mortgage and joint owner of our home which actually sounds a little bit scary when I write it down

PixieGio Tue 21-Jun-16 12:21:39

We did this. Broker didn't even care about my salary and still put my name on mortgage but with just husbands salary and no childcare costs.

PassTheCremeEggs Tue 21-Jun-16 13:06:43

Thanks all. Would you still advise seeing a broker even if we're tied to our current lender? We can't switch lenders without paying a significant early repayment charge

Catnuzzle Tue 21-Jun-16 13:15:18

Glitter
Please have a good look at yourself in the mirror.

I am the 'numpty in the bank' that you are referring to. I think the phrase you meant to use was knowledgeable and skilled member of staff who applies the bank's policy in accordance with the limitations of the Financial Regulations.

PassTheCremeEggs Tue 21-Jun-16 13:18:53

Catnuzzle - are you a mortgage advisor in a bank then? Could you tell me what you would advise if faced with our situation?

Donatellalymanmoss Tue 21-Jun-16 13:22:38

Sorry I missed the bit about you being tied to your bank, not sure a broker will be much use in that case unless the bank won't lend what you need.

Idontknowwhoiam Tue 21-Jun-16 13:28:59

You have to sign to say you don't anticipate a change in circumstances.
If you know you won't have a salary in 2 months you could be in trouble for declaring it anyway.
In

Idontknowwhoiam Tue 21-Jun-16 13:31:40

Posted too soon!
Just be honest with them and tell them in two months you won't have childcare and your salary. Youay get a better offer and some mortgage offers are available for up to 3 months after the quote.

AngelsWithFilthySouls Tue 21-Jun-16 13:43:31

Slightly different scenario but DH and I took out a buy to let mortgage last year shortly after I had started a new job (also post-mat leave) and whilst both our names were on the mortgage we based it only on his salary as I didn't have payslips yet to prove my income and it saved the hassle of asking my HR department for a reference. We didn't use a broker and were totally upfront with the lender, they were the ones who suggested just using DH salary to avoid hassle for me.

Catnuzzle Tue 21-Jun-16 13:55:14

Pass
Be truthful about your situation. All lenders are now committed to ensuring affordability. You may not agree with the policies or how they may hinder your plans, but it's about being responsible and ensuring a fair outcome.
I frequently get asked 'how much am I entitled to borrow?' Nothing. You are entitled to nothing. Banks are a business at the end of the day.
A broker will know who will lend in your circumstances if you don't have the time to ring around yourself.

Muddlingalongalone Tue 21-Jun-16 14:17:00

Have you considered seeing a broker anyway? If you are only tied in til November it might be worth paying the penalty if you can get a better deal elsewhere?

wonkylegs Tue 21-Jun-16 14:29:24

We have both names on our mortgage but have recently remortgaged on DHs income alone. I'm self employed but on maternity leave atm so the bank advised us to simplify the paperwork and put me down as a SAHM but it's still a joint application with my name on it but assessed on DHs income only. We were open and honest with the bank and this was their recommendation.

Whatthefoxgoingon Tue 21-Jun-16 19:34:25

When we had a mortgage, it was based on DH's salary only, even though I was on the deeds. No problems encountered.

PassTheCremeEggs Thu 23-Jun-16 09:13:54

Late back to the thread but thank you everyone for your advice

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