To not be concerned that my DH will be the sole owner (and responsible) for the mortgage on our first home?
Helpmepleasenow48 · 23/09/2018 21:07
We are lucky enough to have been gifted a substantial amount of money (from my husband’s fsmiky) which we are using to buy a new build detached 4 bed. We are renting so it’s our first home. My husband has been in his job (a permanent job) for 11 months but I left my permanent job last year and am on a well paid but freelance contract which I only started last month.
While we were deciding to apply for a mortgage I found a default on my credit record. It was from 12 years ago when I part settled a loan: I found this out when I did my credit record so I called up the company that now owns the debt. I can pay it off in the next few months but it would still go in my credit record.
So because my husband’s income can cover all our bills we have had to make the decision that he takes out the mortgage but this means he owns the property. Neither of us have built up assets outside our marriage and we aren’t too bothered. Our DC are 10 and 6. When I decide whether to continue the contract or go permanent (and when I don’t have a default) we may decide to see if we can put me in the mortgage. I use my full ISA cash allowance to set aside money so I will keep putting money in there and then pay down the mortgage when I’m on it. However a couple of friends have said I should be worried. Now I’m thinking I should be...
hotcrossbun83 · 23/09/2018 21:52
I’m on the deeds of our house but the mortgage is solely in DHs name. HSBC were ok with it, apparently many lenders aren’t. We did this a year ago, also because I’m freelance. The risk, advised by solicitor, is that if DH stops paying the mortgage then the bank can repossess my portion as well as DH’s. That’s ok with me, I couldn’t pay the mortgage irrespective of whether I was on the mortgage or not as I don’t earn enough.
TracyBeakerSoYeah · 23/09/2018 21:55
There is information here which states the rights you have:
boux · 23/09/2018 22:12
You can put your name on the deeds without being on the mortgage. However, this is very uncommon because banks offering the mortgage do not like it. They don't like to offer mortgages where there is someone else with an interest in the property who is not on the mortgage if that makes sense.
Lilao · 23/09/2018 22:19
Would it not be better to wait 6-12 months when your default will have dropped off and you will be more established with work?
Especially with all the uncertainty about house prices and brexit if I was in your position I would see what happens and then secure my future on the house!
It's a risky game, and I understand why you're tempted but it's only you that stands to lose out?
Nightwatch999 · 23/09/2018 22:22
Defaults stay on your credit file for 6 years only, I would look at getting it removed if it's from 12 years ago.
Personally I would not be happy if the house was in DH name only. Your are married, any children will need a roof over their heads for 18 years, and who will be staying at home to look after them?
Helpmepleasenow48 · 24/09/2018 07:08
We can’t wait. We know house prices will go down but interest rates will go up. We have to live in the area for at least 12 more years (schools) and it’s very near London. The house we are buying was sold but the buyers had to pull out (illness) so we’ve got an extra £10k worry of upgraded spec in the house. Our mortgage will be £300 a month cheaper than our rent - we also know our landlord is in dire financial straits and that alongside a very sick relative and another needing care - now for us we need to move. I’ve weighed it all up. We’ve been living in a substandard house for 9 years and themould and damp here will soon get worse again. Many factors
Frouby · 24/09/2018 07:19
Just buy the house! You are married which gives you more protection. The inheritance is from his side of the family. He isn't buying in his name because it gives him more security he is doing it because you can't be on the mortgage.
If you made a payment 5 years ago the debt will show on your file. It's no longer statute barred as it's been serviced in the last 6 years. If you hadn't made that payment you could have asked for it to be wiped off, but just get it paid ASAP.
And £300 a month is a decent amount of money to save each month. I would save that £300 just in case interest rates go up personally.
Worst case scenario, you and dh split, he gets the house. You aren't losing anything. Atm you are paying towards a landlords mortgage. Pay towards your DHs instead. Get advice in what would happen if DH ended up in care and protect yourself as much as you can from that.
Havaina · 24/09/2018 07:22
Thank you stylish can we turnout my name on the deeds and on the mortgage at a later date?
I would get on the Deed of Trust at the same time at the time house is bought.
The relative 'stated' the money was yours too? You wouldnt be able to prove that if the statement was verbal.
AssignedNorthernAtBirth · 24/09/2018 08:17
Deed of trust, register your marital home rights at the Land Registry (this is the thing now rather than 'deeds'). Being married puts you in a much better position than you'd be unmarried and it actually doesn't matter as much. Do ask your solicitor about all this.
Xenia · 24/09/2018 08:30
Two points not mentioned above
- If you go on the house later and it is mortgaged there is stamp duty on the transfer which can be so expensive most married couples avoid it. So better to go on now if you have a rare lender (unlikely) who will let you on title but not loan although from the posts above may be your credit record is okay to let you on and with a good mortgage broker even your self employed earnings (because your husband's salary may be enough yet still allow you on - a broker will help with all that more than a lawyer by the way as they know what mortgage products are out there and things about credit checks).
2. If the house is in his name only then register at the Land Registry a spousal right over the home - the solicitor today can advise you on that. It takes a few minutes and the form is on line and means he could not sell it and disappear to Thailand with the proceeds without your knowing.
3. Are we sure his parents have made a gift not a loan to him?
4. If he dies and it is not in joint names it falls into the general estate - you are probably under inheritance tax issues but he might leave some of it to other people unless in joint names as joint tenants.
howabout · 24/09/2018 08:44
Unlikely you would be able to get a mortgage on this basis if you are married. As a married couple assets and liabilities and income stream are all considered to be joint. Therefore most lenders will look at the financial position of both members of the couple.
(We had this problem because my DH was a recently self employed contractor when we took out our first mortgage. My income was enough to cover it but the bank still insisted on doing full due diligence on him. It made all the paperwork a bit of a pain).
2b1c51 · 24/09/2018 08:44
We did this. Husband was a mature student when we applied for mortgage so mortgage company classed him as my dependent and actually reduced the amount we they would offer if he was on it too. Instead, we applied for mortgage and deeds in my name only, and at the end of my fixed term deal, when he was in a job, added him to the new mortgage and deeds. Was really simple and cost about £200 in fees.
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