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Original poster

To ask that the house be in both our names 50/50

88 replies

fibrecruncher · 24/02/2015 00:12

Just want to ask what other people and done.

Partner and I are buying our first house together - a wonderful, exciting, fraught and stressful experience so far!!

DP earns considerably more than me right now, actually probably always will. I work part-time in the evenings and am home with 17 month old pfb during the day.

As I am self-employed - we are considering putting the mortgage in just his name as we might get a better rate (I suppose I am considered a higher risk to banks), but i will contribute to the mortgage. I feel the house should be in both our names 50/50. The mortgage reflects our current situation and when ds goes to nursery & school, I will work more hours and therefore contribute more.

I am just curious to find out what others have done?

Thanks

OP posts:
BudsBeginingSpringinSight · 24/02/2015 09:36

I can't see why putting you on would reduce what you can borrow, if they think you are too risky then they will just take your DP's income into account therefore it won't be any less than he would get on his own.

It depends, if the op, is a risk they will still lend money probably however will make them pay a higher rate.

We would have been able to borrow more money with me on the mortgage however I had an old student debt blemish on my account and they would have charged us a highter rate we would have struggled with.

SilenceInTheLibrary · 24/02/2015 09:52

We have always been 50-50 with everything, even though dh has always been the higher earner.

If you re unmarried, make sure your name is on the deeds or get married. If he won't get married, and the house is in his name, you will have no rights at all. He can just kick you out - it happens all too frequently unfortunately.

You are in quite a precarious position if you split, or he dies.

SilenceInTheLibrary · 24/02/2015 09:56

IMO, you need to both be on the mortgage and both on the deeds, with a life insurance policy which pays off the mortgage if one of you dies.

If there's genuinely a lower rate available if just he is on the mortgage, then fine - but you should be on the deeds. Or get married - that way you (as the lower earner and main childcare provider) and your dc are protected.

And make wills!

If he has any problem with the above, then you should ask yourself why.

StatisticallyChallenged · 24/02/2015 11:06

We bought recently, and DH couldn't go on the mortgage because of recent self employment. This also meant that he was not allowed to be on the deeds - IIRC it was a fairly recent rule change but was totally non negotiable.

Lemondrizzletwunt · 24/02/2015 11:12

When we bought our house I was self employed (although earning more) so DH applied for the mortgage in his name only. Our solicitor then drew up extra paperwork which we all signed to declare that we accepted joint responsibility for the mortgage, and that we each own a 50% share of the house.

PotatoLetters · 24/02/2015 11:13

Your contribution to childcare evens up the difference in incomes.

Definitely go 50:50, or bill dp for his half of childcare.

Badgerwife · 24/02/2015 11:22

Just did this recently, we're completing this week; I've been SAHM, DP in full-time paid work. As it happens, I'm going back to work part-time 2 weeks after we move but at the time, I was not in employment.

Our financial adviser and solicitor both went ahead with 50/50, it was a non-issue. We view our relationship as a partnership that's not based on who pays what so everything is shared. The seller, on the other hand, got the wrong end of the stick from the start and drew the contract with just DH name on purely because I'm not working. It was a bit of a pain to set him right but no way would I not go on the mortgage.

StatisticallyChallenged · 24/02/2015 11:26

I don't know if this was an issue for you badgerwife, but we looked at having DH named on the mortgage. It would have been possible, but they wouldn't have counted any income from him which would actually have reduced the amount we could borrow (and quite considerably) as he effectively became classed as my dependent!

It didn't matter in our case to not have DH named but in the OPs case where they're not married it's a different story.

SmileAndNod · 24/02/2015 11:32

Crikey I'm confused. Can you be named on the deeds of the house and not named on the mortgage then (eg if you are a sahm and not earning)?

kickassangel · 24/02/2015 11:36

Yes.

SilenceInTheLibrary · 24/02/2015 11:45

I'm on the deeds and the mortgage, and I was a sahm when we got our house. We're married though, don't know if that makes a difference.

WhereIsMyFurryHat · 24/02/2015 11:46

I am a SAHM and there was one point when our fixes rate ran out that it was better for my H to be the only person on the mortgage. We were not married at that point (we are now) so we got our solicitors to write up a declaration of trust (I think) which offered me some security. This was on their recommendation.

We're now married and both named on the mortgage as the rate was the same with us both named.

EvilTendency1 · 24/02/2015 12:06

How does one be named on the deeds if not on the mortgage ?

StatisticallyChallenged · 24/02/2015 12:08

My understanding is that most (all?) banks will no longer allow you to be named on the deeds but not the mortgage - it's both or neither. That was with lloyds/hbos and less than a year ago. Our solicitor said it was standard now.

Saturn123 · 24/02/2015 12:14

whatever you do please get proper advice

I am going through a divorce and like most people of our age, the house is our biggest asset. It is imperative, even when you aren't married (in fact, probably even more so important when you aren't married), to understand how the asset will be shared on death and on the end of the relationship. For your sake and for the sake of any dcs.

IroningDiva · 24/02/2015 12:18

This reply has been deleted

Message withdrawn at poster's request.

Jackiebrambles · 24/02/2015 12:25

With me and my DH we are both on the deeds and the mortgage.

When we took out the mortgage the advisor told us that my DH earns enough that they didn't need to take my salary into consideration in order for us to borrow what we needed (so the salary multiples thing).

But we are both on deeds and mortgage.

Badgerwife · 24/02/2015 12:35

tbh I don't know, it was never mentioned by the financial advisor as having any bearings on our ability to borrow.

Zamboni · 24/02/2015 12:41

Generally a mortgagee (bank) will require the mortgagors (borrowers) to be the legal owners of the property. This is what is meant by being "on the mortgage and on the deeds". Usually, the mortgagee will require that only the mortgagors, whoever they are, be the registered owner(s) of the property, so that they can grant the best kind of security as far as the lender is concerned.

It is possible for someone who is not on the mortgage, nor the legal owner, to have a registered interest in the property, which is effectively postponed to an interest in the equity after the lender's interest. That does afford some protection if done properly, but is not the same as being registered as a joint owner.

This can be a complex area and there is no substitute for good legal advice in such situations. The cost of getting that now will be significantly less than sorting out a mess years down the line.

kickassangel · 24/02/2015 13:00

The deeds of a house are the people who own it. The mortgage is for any money lent against that property. The two things are completely separate and different documents.

It is possible to own a house without having a mortgage. Your name will be on the deeds of ownership, but no mortgage even exits.

There are even cases where someone has a mortgage on a house but don't live in it, and whoever does live in it is on the deeds (e.g divorced couple, or elderly relative with younger family member paying the mortgage)

There is no reason NOT to be on the deeds just because of financial status - unless the DP in this case thinks he gets to keep it all for himself in spite of having a partner who supports his ability to work and takes care of his child for him.

BudsBeginingSpringinSight · 24/02/2015 13:26

how do you get on the deeds? is it expensive, can you do it without solicors

StatisticallyChallenged · 24/02/2015 13:32

They are indeed completely separate documents. But most, possibly all, lenders require that the names match, and you have to go with what the lender says as otherwise, they won't lend the money.

I don't know of any mortgage lenders who will now permit people to be on the title deeds but not the mortgage. We were told it was an absolute no now, and most information I found seemed to either agree, or be quite old!

hettie · 24/02/2015 14:23

As already stated- apply for the mortgage in his name (if you wish- as a joint application that includes a self-employed applicant will make it tricky) and then 50:50 on deeds. If he won't/doesn't want to do this then you need to have a long cold hard look at why.....Oh and get a will made up...

SmileAndNod · 24/02/2015 15:34

Doesn't seem that you can do that now if the mortgage has to match the deeds?? Whatever OP you need to make sure that your interests are protected, should the worst ever happen. You're doing a v important job by staying at home bringing up the family.

kickassangel · 24/02/2015 15:42

I have no idea about current UK mortgage lenders as I live in the US.

But - on our mortgage, I am named as a person with an interest in the property, but I was NOT taken into account for working out the finances part.

DH's salary was used to define how much we could borrow. Both of us are recognized as adults who live there, so I can't be turfed out if he dies.

On the ownership papers we are both equal owners, and they are completely unaffected by the mortgage arrangements.