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One spouse applying for a mortgage alone?

(12 Posts)
Nickname1980 Tue 13-Sep-16 14:48:16

I was doing some playing around with online mortgage calculators and I discovered that, if my DH were to apply for a mortgage alone, he would be able to borrow more than applying with me (I am a SAHM and we have two kids).

Why is that?

And can he apply alone?

It's quite a significant difference. We can afford to pay back a larger sum borrowed, we're not in any debt and my DH's salary is good and stable and our outgoings aren't huge.

The difference between what he can borrow "with" me and without would mean we wouldn't have to leave our current neighbourhood.

PlumFairy2014 Tue 13-Sep-16 14:51:13

Ours was like this too, when I was at home with little one.
My DH applied alone, so he got more. However I worked one night a week, so although I earned very little I didn't class as a dependant (which would have meant he could borrow less). So that might effect it if you are a dependant.
The house can be in both names, even if the mortgage is only in one.

JanieLovesLuckySocks Tue 13-Sep-16 14:51:13

I don't see why it would be a problem....although I wouldn't recommend telling any fibs ie does he have to mention 'dependants'?

Our mortgage is in solely my name...it was my house that DH moved into and I never changed it

sparechange Tue 13-Sep-16 14:53:10

It is probably be because lenders will let you borrow a higher multiple as a single borrower than a joint one. This works out better when both are earning, but not when there is only one salary
EG
DH earns £50k, you earn £25k - you get 3.5x joint income =£262.5k
DH earns £50k, you earn £0 - 3.5x = £150k

As a single borrower, you can borrow up to 4 or 5x, which is probably why he can borrow more without you

Things to consider - Some mortgage lenders won't lend to a married couple unless they are both on the mortgage. Most will, but it might limit your pool of borrowers. A broker can help with this.
If the mortgage is only in his name, the house can only be in his name. You can draw up a deed of trust which makes your share 'official', but you won't be on the deeds. You'll also have to sign a document where you relinquish your claim on the house and will move out in the event of it being repossessed.

TheCrowFromBelow Tue 13-Sep-16 14:57:34

I'm fairly certain that your lender would not agree to lend if the title deeds have both names and the mortgage only has one name on it.

You would be best to speak to an IFA as I believe that without an income you'd be classed as a dependant.

Hufflepuffin Tue 13-Sep-16 14:59:54

On calculators online it might be like this but we went through a broker and I am on the mortgage even though I'm not earning anything, it didn't affect the calculations but made it easier from a legal perspective (I supplied deposit, and as someone mentioned, lenders don't like someone's name being on the deeds if they're not also named in the mortgage). Pm me if you want our brokers details, highly recommended.

0hCrepe Tue 13-Sep-16 15:01:50

I've got a mortgage just based on my salary, it wasn't a problem at all. We're both on the deeds. I just said I only wanted to base it on mine though dh does have some earnings.

sparechange Tue 13-Sep-16 15:02:59

The house can be in both names, even if the mortgage is only in one

This isn't correct, Plum. You can have 2 people on the mortgage and only one on the deeds, but not the other way around. You can get a deed of trust drawn up by a solicitor to protect your interest in the house, and it is to all intents good as being on the deeds in case of death or divorce

0hCrepe Tue 13-Sep-16 15:05:50

For us then dh is named on mortgage but his earnings weren't taken into account.

sparechange Tue 13-Sep-16 15:10:05

Crepe, yes, that is the sort of thing a broker can help with easily.
The only potential issue there would be if the person who's earnings weren't taken into account had a really bad credit rating, because I think their score is still taken into account even though the earnings aren't...

0hCrepe Tue 13-Sep-16 15:14:20

Ah ok. Yes they did checks. Wasn't with broker though, just the bank.

PlumFairy2014 Tue 13-Sep-16 16:28:23

Apologies! My mistake. It was a deed of trust we had.

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