Is it possible to take out a mortgage in one person's name, in a jointly owned property?

[goldengoddess]

Hi, I wonder if any financial gurus/mortgage geeks will be able to help. My ex-husband and I want to remortgage our family home to free up funds to enable him to buy a separate property of his own. However, his credit rating is much better than mine, not entirely sure why as most of our finances are joint, but anyway, that is what we discovered when we checked our credit ratings with Experian/Clearscore.

We still own the property jointly, (I live in the house with the kids while he has moved out), and both our names are on the property deeds. Can he apply for a remortgage with another lender in his name only, as I am worried that i will probably get turned down for a loan? Or would a new lender insist I was also on the mortgage as my name is on the deeds? Would be really grateful for some advice!

Generally the mortgage would have to be in joint names

The mortgage is secured on the property, not on the person, so a lender needs to know they can sell the property if the mortgage isn’t paid.

They won’t be able to sell it if you own half of it and aren’t on the mortgage.

So no, your ex can’t get a mortgage alone on a property you both own.

Ok thanks both that's helpful. If not what I wanted to hear!

But you can get a mortgage with them just using one person's income. My DH earns way more than me and mortgage is in both our names but it was only his income that was used in the application. Worth checking with a mortgage adviser. You may have a problem with him not living at the property anymore though.

My DH earns way more than me and mortgage is in both our names but it was only his income that was used in the application.

Is this still ok if the low earner has a poor credit score?

If he isn't living in the property then he's going to struggle to get a mortgage on it anyway. At best, you would have to go on the application as you live there. No point only doing it on his income as you will go down as a dependent along with the kids, and it will reduce the borrowing. If he goes on to buy another house, that's going to cost him dearly. There's capital gains tax to pay if he sells the second property, there's stamp duty to pay regardless of value, and he could struggle to get a second mortgage as he will be liable for the first one.
You really do need to speak to a broker for proper advice.

What difference would it make whether or not he lives at the property? He is still on the electoral roll as living here so technically he still does.

I think that might be fraud

So basically you want to take over the property yourself so he can have his share of the equity? Then you need to sort out the ownership. Is there a particular reason you still own it jointly?

Have you checked if you would actually be able to remortgage in your own right anyway?

As has already been said, as a joint owner your husband would have to be on the mortgage in order for the lender to have sufficient security, and being on this mortgage will greatly reduce his ability to get a mortgage elsewhere.

Yes you can get a mortgage on one person's income, but all the owners of the property have to be liable as the lender gets their security from their ability to sell the property and not from your ability to make the payments.

It matters because he has a vested interest in a property he isn't residing in. The only other time you do that is if the property is being let. Most high street lenders won't do a mortgage for someone who isn't living at the property. He shouldn't be on the electoral register for the property if he doesn't live there, it isn't allowed. That is why you get that very important letter from the council every year asking who lives there. Lenders will also check where his accounts are registered, and assuming you do not receive his current bills or statements, they will want to know why there is a different address.

Have a look at this thread

www.mumsnet.com/Talk/am_i_being_unreasonable/3806935-to-think-the-house-should-be-in-my-name-too