Dp wants to buy a house ,but he says my name can not be addded to the mortgage as I dont earn enough to be considered.

[bloomsinjune]

Is he talking crap,or is he right im confused?.

He is wrong blooms so you've got your answer from him which is by all means add it to the deeds.
Would seem as though he's not necessarily trying to keep you off of them at least anyway.

Another voice to the chorus - I am a SAHM and earn nothing. We have joint names on the mortgage, are tenants-in-common (that's the one where we jointly own all the property, right? rather than each of us own 50%), and my name is most definitely on the deeds. I would have been very unhappy otherwise. We also have each other named on our life insurance policies, and have wills leaving everything to each other. Shit happens and you need to be protected.

By the way, the mortgage company was still happy to lend us 4.25x DH's income. Which terrified us! This wasn't even in the boom. We didn't borrow that much.

MrsTittle I think you 've got it backwards. Joint-tenants jointly own all the property and tenants in common own it as a set percentage.

Earlie poster said she was tenant in common with her DH so when he dies, his share goes to his kids

fuzzypigFriday - I think it would very much depend on what type of mortgage you have and how you look at it. Very few people in this day and age will take out a 25 year mortgage and stick with it for the full 25 years - unless they can get a mortgage at a totally fixed, very good rate for the duration (and there are very few mortgages that fix for 25 years to choose between). It would seem that the chances of you getting a 25 year mortgage that was calculated based on 2 incomes for 10 years and 1 income for the remainder of the term would be slim - but you might be able to work a mortgage based on your income alone to give the same end result.

If you get the right mortgage then you can make unlimited overpayments. You might want to consider getting a mortgage with that facility that you can manage on your salary alone (whether your DP is on it or not ) and using whatever your DH can contribute to overpay as much as possible while he is still working. That would also have the benefit that you could use the overpayments to reduce the term of the loan, such that you wind up mortgage free within the 25 year period.

Good luck :)

Umm...actually my mum has been getting mortgage quotes in the past month and she was told the same thing. My mum works f/t but my dad can only work p/t so has much lower salary. She went to a few different banks who all said they would lend a higher amount if it was it was in her name only. I assumed that it was because banks were more willing to lend to one person on a higher salary than two people on a relatively lower joint salary. It may be that things have been tightened up recentlyl.

Anyway, as others have said, it doesn't matter whose name the mortgage is in, as long as both names are on the deeds. That will be the case for my parents.

northernlurker- thanks for your reply.

Yes, I am able to stay in the house after his death for as long as I wish. My stepchildren are entitled to the designated amount after my death. A "whole of life" I think- does that sound right? Have we done the right thing?
Thanks

bloomsinjune - your DP is getting confused and then confusing you.

Your name can and should be added to the mortgage and the deeds as others have said.

What DP is probably getting confused by is the bank saying they will offer a certain multiple of his salary but your salary is too low to be worth taking into account in working out the maximum the bank will lend.

In the old days the banks would typically lend 3 x joint salary or 3.5 x single salary. For a couple with one high earner and one very low earner it was almost always better to maximise your mortgage by doing a 3.5 the largest single salary than a 3 x joint.

talking crap

So if he gets a mortgage,but my name is on the deeds,and life assurance and he has a will leaving everything to us would that be ok?.

i work part time,so if we spilt I could not afford mt part of the mortgage,also Im not paying the mortage my money goes on the kids,house etc.

And im not after his money,house etc Im protecting my ass as we have children and I dont want to be in a sorry situation.

Shakey - yes that sounds better Perfectly fair that your stepchildren get their inheritance. They just shouldn't get it at your direct expense iyswim.

Shakey - my mum and stepdad were tenants in common and when my stepdad died, half the value of the house is reserved (for want of a better word) for his daughter when my mum dies. My mum can live in the house for her whole life (although can't move a new partner in) and she's actually just sold it (needed step sister's permission) and has bought a flat which is more suited to just one person living there. Her having a home is secure but also my step sister's inheritance is too. They did this because they both sold property when they got married and therefore both wanted to ensure their respective children received back the % share both partners had contributed.

The idea being, that either my mum or stepdad (whoever survived) could sell the house and buy something more suitable and spend the equity on home help if needed, but on the death of the remaining partner, the % split of the house went to the children outlined in both wills. So, when my mum dies, she can't leave 100% of the house to me, but 50% of the value of her current home goes to my step sister too as requested by my stepdad in his will.

It does need to be tied up well in legal speak as my step sister thought she should also get 50% of the equity when my mum sold the family home. So you want to make sure you understand exactly what your solicitor has written up. It's kinda like deferring part of the dead partner's will until you die, effectively freeing up the house . It also means that my step sister is now on the deeds of my mum's home and her permission was needed for my mum to sell the family home.

Sorry, that was long. We're just going through it all now and tenants in common was exactly the right choice for my mum and stepdad.

bloomsinjune, the scenario described in your post as at 21:10:15 is right.

My tuppence on the matter (basically a LONG version of your post ...)

He's talking crap - to an extent. You have to look at 2 things separately:
(A) The mortgage
(B) Ownership of the house

Mortgage
Mortgage lenders usually lend on the basis of salary.

If your DH earns say £40,000 pa (gross) and they lend at a ratio of 3xannual salary, in theory, he would be approved for £120,000.

Lending to two people, instead of one, throws up the issue that most mortgage lenders will e.g. lend on the basis of
2.5xannual salary of the person who earns more
PLUS
1xannual salary of the person who earns less.

This means if your DH earns £40,000 pa (gross) and you earn £10,000 pa (gross), jointly you'd both be approved for a mortgage of:
£100,000
PLUS
£10,000
TOTAL
£110,000

So, in theory, there is nothing stopping you from taking out a mortgage together, no matter how little you earn. However, if you earn substantially less than him and you want to apply for the mortgage jointly, there is a risk that you both together would be approved for a lower amount than if he simply applied by himself. This may be a problem if, in buying a property together, you would not have enough money based on both your salaries taken into account for a mortgage.

Ownership
When you decide to buy a property with the aid of a mortgage, the mortgage lender will want to know who is to be put on the deeds as the owner of the house.

The owner does NOT have to be the same as the person who has taken out the mortgage. HOWEVER, you may find that some mortgage lenders will not want two names on the deed when only one person has applied for the mortgage - the mortgage lender cannot stop your DH from putting you on the deeds were you to buy a house together, but they may refuse to grant you a mortgage/loan you the money.

This is because , if your salary has not been taken into account when you applied for the mortgage, the mortgage lender knows NOTHING about your financial history. An overly cautious lender will NOT want someone having a legal interest in the house about whose finances they know nothing - it throws up problems in the future should e.g. the DH default on the mortgage, the lender tries to enforce its security (ie retake possession of the house, sell it and recover monies owed to them) and suddenly a person from seemingly nowhere can potentially stop them from being able to do this or reduce any amount that goes to the lender if and when the property is sold and the mortgage needs to be discharged.

My advice -

1. Wait till you can afford a house when a mortgage lender has to take into account BOTH your salaries!

1. Regardless of whether you apply for the mortgage together, if you do end up buying the property, ensure that you are listed on the deeds as a legal owner. (If a mortgage lender has a problem with this, find a new one!)

1. When registering the property, your solicitor should have you complete a form RX1. On this, you should specify that you and your DH are to own the house together either

(a) as joint tenants (this means, if your DH dies, his share of the house automatically transfers to you) OR

(b) as tenants-in-common as to 50% (this means you have a 50% beneficial interest in the house which, when you die, you can pass on to whomsoever you choose)

(there are associated inheritance tax issues about this which any conveyancing solicitor worth their salt should be able to explain clearly to you)

1. Under NO circumstances should you agree to be put on OR pay towards the mortgage if your ownership rights are not recognised on the Land Register (this does not apply vice versa - if your ownership rights are recognised on the deeds/Land Register, you may or may not be put on/pay towards the mortgage as you wish/you and your DH agree)

Please do not let anyone fob you off by telling you you could register occupational rights based on it being the matrimonial home - this merely gives you a right to occupy the home if you have children under the age of 18 and are the primary carer* - it does not give you an ownership interest in the value of the property. Once your children turn 18 or you remarry or circumstances exist where a court would not consider it reasonable for you to remain in the home, you would have to leave the property and when it is sold, you may end up not being entitled to a share of the proceeds.

Do note that the advice above is my personal opinion based on assumptions and worst-case scenarios - I am not a qualified solicitor and, as such, am NOT qualified to advise you on legal matters. I am also NOT a qualified financial adviser and, as such, am NOT qualified to advise you on financial matters. . For all I know, any law/financial advice that I have referred to above may have changed - having said that, I am going through a (for now, amicable-ish!) split with my DH and have run into all kinds of issues for the very reason that I did not have my name put on the mortgage or the deeds to the property.

If in doubt (and your OP sounds like you have a LOT of doubt, and not without good reason!), seek independent legal advice. Either go to a conveyancing/family law solicitor (some offer the first half an hour of advice free) or, if you can't afford solicitors' fees, your Citizens Advice Bureau.

If you have children you must insist on security and at the very least have your name on the deeds.

Shakey - do you have children or planning to have children? what will happen if you are allowed to stay in the house for life but something happens to you before your children are self sufficient - out on the street? would it not be better if your husband wants to leave something to his children that he takes out some life insurance, they can get the money straight away and you are safe in the house? Just a thought

Yes - The HOUSE SHOULD BE IN JOINT NAMES!!

No question.

I should add that when my mum dies, my step sister gets 50% of the value of the current house, not 50% of the family home that my step dad died in!

You definitely need to check everything out so you know exactly what will happen if your partner dies first and exactly what your children will get if you die first. Especially regarding your partner selling the home or having another relationship.

Are you married OP?

If not, you will be liable to pay tax on any assets you inherit upon his death.

If you were married, you wouldn't.

Excellent post Blindassasin.

Having recently got a mortgage and we're tenants in common as advised by our solicitor - I think there are few lenders now who'll let you be on the deeds if you're not on the mortgage for the reasons Blind outlined.

Sorry the above was for shakey

Thanks ladies- phew! I thought I had it right but just wanted to check :)

Exactly NL- absolutely fair. And only fair that it was written up legally as well, I'd rather have it that way.

slippyslap- sorry x post

We have a ds together already. It is written that if I die, my share of the house (when dh dies) goes to ds. Or held in trust until he's 18. Dh has three children altogether, including our ds, so when he dies each child gets a third "reserved" for them.

Thank you Blindassain that was very helpful,really truly appreciated as I said I want to protect our childrens future as well as mine,so all information is greatly received.

I will relay all you have said to him,I think he just got confused ,and confused me in the process,thanks again x.

Thanks Maryz!

bloomsinjune, I don't know about showing your DH my exact post - it sounds very much like I'm approaching it from a contentious angle which he may or may not feel offended by (though one would ask why feel offended by it if he wants to set up the property purchase in both yours and your children's best interests ...). Hope it all works out for you both, and (if you do decide to purchase the property together), happy househunting!