To be confused about deeds v mortgage...

[CateJW]

Bouncing this off of another thread, as I didnt want to hijack theirs, but hoping there are folks more knowledgeable than I out there (I will also ask our mortgage advisor closer to the time)
I thought mortgage and deeds were totally separate? but another poster is saying the mortgage lenders didnt want her on the deeds despite putting a large lump sum towards the deposit!?
So my question is can they make the same stipulation with a remortgage, or once you have brought the house and are on the deeds are you on for life (or til sale)??

Short history, I owned a house solo, my partner started to paying towards said house half way through the 4 years i owned it (though I alone paid the deposit) We brought a bigger house together, the 20% deposit was from my house sale. A generous person would say about 30% of that money was from his contribution over the 2 years, though it could be argued less if you take into account the rise in house prices whilst I owned solo......fast forward 5years, two young kids and a pandemic later his wage has risen considerably and mine has crashed and burned! sob.He now pays 90% of the bills for house and kids, I pay the other 10%, my own bills (car/phone etc) and day to day costs like food, kids clothes etc.
When we remortgage next August I was predicting that the bank would not bother to take my earnings into account (especially as I had seiss payments which a lot are being funny about)

Sooooo do I need to insist on staying on the mortage or is it a totally different situation to previous poster, when you already own the house and are on the deeds??

Thanks folks!

Mortgage lenders will want the people named on the mortgage to match the people named on the deeds. If you are both named on the deeds then you will need to make a joint application for a mortgage.

I’m also confused about this. could be blind leading the blind!

When we looked at a mortgage earlier this year and we just wanted his name on the mortgage but both our names on the deeds out of the shortlist the IFA gave us, only HSBC would allow this. Sadly didn’t match the other mortgage offers so if the house hadn’t fallen through, we would have had this scenario.

I would be interested to know which lenders people are using that allow this!

We also looked into adding me as a dependent and that didn’t change the affordability than just having the children. I’m not sure how that would have worked with the names on deeds.

Re remortgage if you mean just going on a new fix and not increasing the amount, when I’ve done it in the past, stuck with the same lender didn’t have to do anything/provide any documents. Took 10 minutes.

Mortgage lender doesn’t want someone else on the deeds because they will have a share of the house if the “owner” defaults.

Eg: my DS wants to buy a house for £200k and I say I’ll give £20k deposit but I want to be on the deeds as having a 10% share of the house. To the mortgage lender, they’re now being asked for a mortgage on £180k worth of house, so the 90% mortgage now looks like a 100% mortgage from their view, so if the house value drops, their investment isn’t covered.

It would be different if we decided to own the house jointly and put-in a joint mortgage application

A mortgage is a loan to buy a house.

When you buy the house you own it jointly and the register will show you both as owners (its a register now, not deeds).

So if you then take out a loan to pay for the rest of the house the loan will generally need to be in both names since you both own the house and if the loan repayments aren’t made they will take the house or force a sale of the house to get their money back.

They can’t force you to give up your share of the house (what you are calling “coming off the deeds”), but they can refuse to lend to you. More commonly though they will simply say you both have to be names on the loan (the mortgage) because you are both owners of the house. If the loan isn’t paid back they can come after both of you or either one of you for the money.

They will rarely agree to only one owner being on the mortgage because that owner only owns a share of the property and that share, if sold, might not be enough to repay the loan. Plus they might not be able to force a sale if there is another owner.

Thanks guys, clearly my assumption that they wouldn't want me on the mortgage with my current low earnings was wrong!! It hopefully won't present a problem, our current combined earnings are about the same as when we brought the house and the houses value has got up. Just never realised who was on the deeds affected how you mortgage/remortgage. I suppose it makes sense and our mortgage advisor would have filled me I when the time comes, the other thread just threw me, cos I didnt realise mortgage companies has any say over the deeds of a house!

They don’t have any “say over the deeds”. You mean you didn’t realise they had any say over the ownership of the house which is recorded at the land registry. They don’t. But when they give you a loan secured against the house (ie when you’ve said, look we are good for the money because we are going to use it to buy an asset, the house and if we dont keep up the loan repayments you can take the house, and they’ve agreed to loan on that basis) they will then put a notice on the register called a charge. That charge says that you owe them the value of the mortgage. The house can’t be sold with the charge on it so you have to repay them if you sell the house

They cannot make you give up your ownership of the house. But if they don’t think your husband’s share of the house is enough to cover their loan they won’t lend him the money on his own, however much he earns. They will want you both named on the loan so that if the mortgage isn’t paid it’s easier for them to repossess the house (ie take it from you and sell it) to get back their money)