Mortgage in my husbands name only!

[Chloe1973]

I have been with my husband for 16 years, married for 6 years. We have two children (5 years and 13 years old). We currently have a joint mortgage on our family home which we have now outgrown. We recently found a really amazing home just outside of London which we want to buy. We initially applied for a joint mortgage which was denied due to my bad credit. The mortgage advisor then tried with just my husband and the mortgage was accepted. My husband asked me how I felt about this and what I wanted to do i.e wait until my credit improves which may take years as I have 2 defaults. I feel sad to even question this but I worry that if (worse case scenario) our marriage breaks down then I’ll be stuffed! Although our marriage is currently very strong we have had some trust issues in the past. Should I go ahead and move forward with this purchase or wait until we have rebuilt my credit? We are keeping our current home to rent so will still have this home.

Surely as you are married, it won’t make any difference whose name the assets are in, should the worst happen. I’m no expert but Would expect everything - equity in both houses and both your pensions will be put in the pot and shared according, especially as there are children involved.

Are you thinking this is a real possibility in the future ?

I’d not buy a second home if you have defaults as it presumably means there have been money/payment issues in the past.

What happens if you have periods of no occupancy or they don’t pay the rent etc? Taking on a second mortgage with a poor credit history in such uncertain times should be more of a worry than who’s name it is in. All assets will be looked at regardless of the name in the event of a divorce.

@IceCreamAndCandyfloss...Did I read a different OP to you ?

Is the lender OK with both names going on the deeds?

If you're being put on the deeds for the house it doesn't matter who the mortgage is down for. If you're not on the deeds perhaps look at at a declaration of trust or tenants in common so its clearly in writing that its 50/50 and you feel more secure.

@Kinkybutkind

Surely as you are married, it won’t make any difference whose name the assets are in, should the worst happen. I’m no expert but Would expect everything - equity in both houses and both your pensions will be put in the pot and shared according, especially as there are children involved. Are you thinking this is a real possibility in the future ?

Yes, I did think this too. You just never know what will happen in the future. I've watched the strongest couples break up so I just wanted to ensure that worse case scenario we will be ok financially.

Marriage is all about trust. OP, you seem to feel vulnerable but TBH, isn't your DH the one who should feel nervous if you are the one with bad credit and 2 defaults?

@IceCreamAndCandyfloss

I’d not buy a second home if you have defaults as it presumably means there have been money/payment issues in the past.

What happens if you have periods of no occupancy or they don’t pay the rent etc? Taking on a second mortgage with a poor credit history in such uncertain times should be more of a worry than who’s name it is in. All assets will be looked at regardless of the name in the event of a divorce.

The defaults occurred due to my immaturity, not prioritising bills and stupidly not realising the effects on my credit score. I obviously know better now.

My SIL separated from my BIL last year. She has never been on the mortgage - he had it before meeting her, she took time off for childcare.

She got 50% of the value of the house. He had to remortgage to release the money to her. It was very simple.

Before this happened I thought she wouldn’t be entitled to anything by not being on the mortgage

@Muppetry76

Is the lender OK with both names going on the deeds?

No it will affect the application. The plan is to add my name when my credit has improved.

@ButtWormHole

My SIL separated from my BIL last year. She has never been on the mortgage - he had it before meeting her, she took time off for childcare.

She got 50% of the value of the house. He had to remortgage to release the money to her. It was very simple.

Before this happened I thought she wouldn’t be entitled to anything by not being on the mortgage

Thank you for this information

@damnthatanxiety

Marriage is all about trust. OP, you seem to feel vulnerable but TBH, isn't your DH the one who should feel nervous if you are the one with bad credit and 2 defaults?

Lol I suppose so although he understands why the debts occurred. I think we are all somewhat vulnerable in relationships and it's important to ensure your security no matter how strong your relationship may be.

OP Maybe try posting this in Legal, you'll get some good advice there about how to mitigate any potential problems this may cause.

OP, why not make an appointment with a solicitor and discuss exactly how to protect your right to half the house in the event of a divorce? Or at least find out the full legal situation if you are not on the title deeds? It would be worth it for peace of mind, or forewarn you not to proceed if there is no way to protect your interests.

Can the deeds not be registered in joint names, even if the mortgage isn’t?

I’m in the process of a divorce. “We” have two homes and I’m not on the mortgage/deeds of either of them. As we’re married I’m entitled to half the equity in each house. As a married couple it doesn’t matter at all.

It’s not a big issue because it is a joint marital asset. No need for exclamation marks.

The serious point is whether they can afford it because they have obviously over extended in the past and need to overhaul their finances. I don’t think a lol answers that issue.

Marriage means that all assets are joint, so it doesn't matter what is whose.

You've been married 6 years and together much longer, so the marriage wouldn't be deemed short. You'd be entitled to equity in the house.

@scubadive

Can the deeds not be registered in joint names, even if the mortgage isn’t?

This is what I meant - will the lender allow both names on the deed for the house (ie who owns it) even if only dh name on the mortgage?

Some do, some don't. Worth a call.

Our mortgage is in my name only and just my name on the deeds.
As I am married, my husband would rightly be entitled to half if we split.
We are going to sell up soon and move into rented accommodation so it won't be an issue, but being married gives you rights to assets.

you can have yur name put on the deeds nothing to do with the mortgage

Why not buy the house in his name only then when it's all sorted, he puts you on the mortgage too, I'm sure this is something you can do?

Your're married so it's a joint asset - least that was what I was told.

I couldn't get on first mortgate despite a good credit rating and providing bulk of deposit - savings pre kids - becuase I wans't earning as was at home with young children - and DH wasn't earning a huge amount and oddly adding me to it meant we no longer met the criteria. Couldn't get put on deeds when not on morrtage either.

Was told we could add me later but didn't as they charged - next house I'm on mortgaue and deeds and its joint tenancy - which I know if often frowned on but suited us.

I'm happier partly becuase some of DH relatives have odd inheritance ideas.

Even if your name is not on the deeds you will have a beneficial interest in the property. Get legal advice but I think you are worrying too much about this.

Is the second mortgage a buy-to-let one, OP? Is the problem that you are already on one mortgage and they won't issue a second joint mortgage?

Not all mortgage companies will permit someone not on the mortgage to be added to the deeds.

I would get some legal advice, it's not as easy to say (for example) 'split' the houses between you - you have the first property and your DH has the second - because you have a joint mortgage on the first one. And if you did that, you'd be the sole landlord of the first property for tax purposes. Tricky situation. I'd look into it carefully.