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Original poster

Does a new mortgage work with a SAHP?

27 replies

StandardNameHere · 24/06/2017 12:18

I thought I was an intelligent person but I am so confused and hoping someone can enlighten me before we look into things properly.
I'm a stay at home mum with a 2 year old son, I am planning to work once he starts school but it will be a case of looking for something when the time comes, I have no idea at the moment.
We are very lucky that we are living in a house with no mortgage, if we sold we would be looking for about a 80,000 mortgage then use the sale of our house as a deposit.
My husband is on about 50k
How likely would we be in getting a mortgage with 1 income?
Disclaimer- this isn't a problem, I know, it's more that I'm confused and don't know where to start!

OP posts:
Heartoverheadhouse · 24/06/2017 12:22

This reply has been deleted

Message withdrawn at poster's request.

beekeeper17 · 24/06/2017 12:23

Do I understand correctly that you'd be looking for an 80k mortgage based on your husbands income of 50k? Can't see why that would be an issue unless he's had any problems borrowing before, it's not even 2 times his salary.

BuggerLumpsAnnoyed · 24/06/2017 12:25

Yeah you'd definitely get an 80k mortgage with one income of 50k. They look at total income related to mortgage needed. The Halifax website has a good mortgage calculater. But I can guarantee, barring no bad credit that you'll be fine.

Lovegaultier · 24/06/2017 12:27

Sounds fine to me. Make sure you are both on the mortgage though.

JennyOnAPlate · 24/06/2017 12:32

No problem at all as long as your dh's credit score is good.

Groupie123 · 24/06/2017 12:37

You might not. You and the kids would be classed as his dependants for mortgage purposes, so if there's any other debt or regular payments it could count against him. Only way to find out for sure is ask a broker.

Original poster
StandardNameHere · 24/06/2017 12:44

Either of us have debts, student loans paid off.
We have 1 child but I was wondering about us being classed as dependants.
Thanks everyone, will have to book an appointment with an advisor to see where we stand

OP posts:
Original poster
StandardNameHere · 24/06/2017 12:44

Neither** not either

OP posts:
FanaticalFox · 24/06/2017 12:49

If you're joint in the mortgage (even though you have no income which is fine - you can still be on the mortgage contrary to old fashioned beliefs) then you are NOT classed as dependent. However your child would be..however with no debt between you and that high income you should have no problems at all.

FanaticalFox · 24/06/2017 12:49

Oh and I am a mortgage advisor before anyone tries to flame me down! Grin

CotswoldStrife · 24/06/2017 12:55

We did this a few years back, I was the SAHM and we were classed as 3 dependents on DH's wage (me, DD and DH) but still got a mortgage.

I realise this is contrary to Fox's post, but that's my experience.

Groupie123 · 24/06/2017 12:58

I work in mortgage policy - if you're a SAHP then you should be a dependant and not be named on the mortgage. If you are I'd question the ethics of the advisor.

You can certainly get the mortgage changed later on when you're at work. It's called a transfer of equity and would involve a credit check on you but most banks provide it.

FanaticalFox · 24/06/2017 12:59

Were you on the mortgage too Cotswold? To be fair I must add a disclaimer that all companies banks etc have their own rules so this may differ! But either way two dependents on a £50k wage only borrowing 80k with no debt will be fine regardless.

FanaticalFox · 24/06/2017 13:01

Groupie that is 100% incorrect. You can be named on the mortgage there are even options such as "retired" "unemployed" "homemaker" etc for this purpose. You can be on the morthage and have zero income. They will take this into account that there is only 1 wage but you may not always be classed as dependent. Especially as mortgage named reflect the deeds then most SAHP would surely want to be named on the mortgage which is why there is this option. You most certainly do not need to have working income to be on a mortgage as this then excludes those on disability allowance PIP etc etc.

AndNowItIsSeven · 24/06/2017 13:03

Fox could I ask you a question, we are looking for a mortgage and have six dependents , is there a figure per child they reduce the amount you can borrow by?

eurochick · 24/06/2017 13:11

You can definitely be on a mortgage as a SAHP. I am. In fact I work full time and am the higher earner but due to bad timing, we ended up getting our current mortgage when I was waiting for a new job to start and so was technically unemployed for 6 weeks. Luckily my husband's salary was enough for the mortgage we wanted and I am listed as SAHP.

CotswoldStrife · 24/06/2017 13:16

I was on the mortgage Fox, it was a joint one. It may come down to individual circumstances though, although it was three dependents on one wage we had a fair deposit, no debts and another asset a mortgage-free house that we couldn't sell at the time so that all went in our favour. There was definitely one company who wouldn't consider us due to age though, so it's always swings and roundabouts!

BuggerOffAndGoodDayToYou · 24/06/2017 13:23

We remortgaged when I'd been a SAHP for four years and was pregnant with second child. It was a joint mortgage and I was listed as a "homemaker" under the occupation section.

We were moving a £60k interest only mortgage and borrowing a further £30k for an extension.

We had no problems doing this on DHs sole earnings and no one at the building society seemed bothered about me being a SAHP.

FanaticalFox · 24/06/2017 13:29

AndNowItsSeven love the name!!

There is no set amount no its all internal rationale and how each company views dependents etc so no set answer to give you..however you can go on online mortgage calculators and put in 4 children or 6 children etc and it will tell you how much you can roughly borrow each time and this will give you a rough idea on how the number of dependents effects borrowing amount.

SootSprite · 24/06/2017 13:38

Groupie is wrong Confused

I'm on our joint mortgage and am classed as a 'homemaker' with zero income.

MadisonAvenue · 24/06/2017 13:49

I'm a SAHM parent and I'm also on the joint mortgage with zero income listed.

Willyoujustbequiet · 24/06/2017 13:51

There's a bit of incorrect advice above.

It doesn't make much difference if you are on the mortgage or not. What matters legally is if you are on the deeds or not. That is what protects your share of any equity. Being on a mortgage simply confers the liability for the debt.

The mortgage and the actual ownership of the house are two different things.

It's perfectly possible for them to be held differently. You can have a mortgage in his sole name but jointly own the house. Or own it in unequal percentages, whatever suits your circumstances.

Lucysky2017 · 24/06/2017 14:48

Also if you are on neither and want to move on to them later - particularly the deeds (ownership) then if there is a mortgage you have to pay stamp duty land tax onthe transfer into joint names so might be a good idea to go on both deeds and loan from the start in a marriage if you can when buying a new property.

Heartoverheadhouse · 24/06/2017 18:55

This reply has been deleted

Message withdrawn at poster's request.

dimdommilpot · 24/06/2017 19:50

I am also a mortgage advisor and we would class you both as a dependent. You do not need to be named on the mortgage but can be named on the deeds so you jointly own the property. £50k to cover an £80k mortgage seems fine though with no debt.