Do I need to make sure I'm protected if the worst happens here?

[LemonRedwood]

Thinking like my mother here, trying to be pragmatic rather than the doom-monger!

DH and I are buying a house. Currently live in his flat that he bought before we were married. We are at the stage where he has accepted an offer on his flat, we have made an offer on a gorgeous house that I'm totally in love with even though I know things can still go wrong that has been accepted. We got the mortgage agreed in principle yesterday.

We have got the mortgage in DH's name only, as I still have a mortgage from when I bought with my sister (she still lives in the property with lodger covering my half, so currently I don't have to pay it, but obviously still on my credit report) and we get a better interest rate by leaving me out of it. It's great that we can afford to do that.

Mortgage broker advised yesterday that by doing it this way I will have to sign a document that agrees that if DH defaults on the mortgage, I have no claim to the property and will vacate. That all looked fairly standard and I am fine with this. If we found ourselves in that position we would move somewhere more affordable together.

My question really is where would I stand then if the worst were to happen to DH or if we were to split? (there's my mother's voice!) We both need to make/update wills and are looking at joint life insurance policies. Would this give me any claim to the house something bad were to happen? Should I be insisting my name goes on the deeds? Can I even do that if it's just his name on the mortgage (I will be contributing to it)?

I did raise these questions yesterday, but our mortgage broker only really knows about mortgages! DH thinks all will be fine if he makes sure I'm provided for in his will and we have a suitable life insurance policy. Having watched my mum go through some struggles when my dad died, I would like to be 100% certain.

Sorry for the long post, wanted to make sure all info was there. I do hate thinking about worst case scenarios, but this house is a big investement and we are hoping we won't ever have to move again

I would want my name on the deeds for sure. You must be able to do this, all the SAHMs with no income what do they do?

In fact are you sure your name can't go on the mortgage but the mortgage is only calculated on your Dh's earnings as you're already committed?

When we bought this house Dh was a SAHD so we got the mortgage just in my earnings. But both names were on the mortgage and on the deeds.

I think you needs tomtalk to a solicitor rather than a mortgages brocker for advice though.

Interesting Simon. I think by having my name on the mortgage it increases the interest rate, it doesn't detrimentally affect how much we can borrow. We just went with the thinking that less interest = better!

We'll need to see our solicitor about wills anyway, that would probably be a good time to ask

What broker are you using? Are they "whole of market" or are they tied to a bank/building society?

I can see why if you're not on the mortgage you might not be able to get your name on the deeds....I guess a lender might not allow it. I'm suprised adding your name affects the interest rate but stranger things happen.

It may be as you're married you're automatically protected and it doesn't matter........

If I were you Id find out which solicitors firm you're going to use for the conveyancing. Ring them up and say you're about to use them for conveyancing but before you finalise your mortgage you want this matter clearing up. See what they say.

this looks reassuring.

Speak to a lawyer particularly regarding the intestate position. Even if you would be OK to continue living there I think inheritance tax would become due when it would not if jointly owned.

I use a broker and I've never heard of a second applicant making interest rate worse tbh.

Thanks for the replies. That link does look reassuring, Simon.

Our mortgage broker is completely independent and has got us a very good deal, so we're very happy with the service. I have no problem with my name not being on the mortgage. My husband's credit score is pretty much perfect and, while I'm not a complete car crash, mine is more of the fair-to-middling variety. I guess this affects how lenders look at us together. We did go through lots of calculations and permutations and have chosen what we think is our best financial option. All happy with that.

Just would like all the "what ifs?" accounted for, even though the plan is to grow old and die happily in our sleep together

Have you considered getting separate life insurance? Joint only pays out once. If you both die, only one lot gets paid out for dependents. Usually not too much more for separate but gives much more security.

We were going to go joint and change if we have kids but financial advisor said the cost will go up if we try to change it in a few years so go single policies now.

see a solicitor as you are married so you have a claim... not sure how you can claim you dont really. and you dont want hassle of having to move out if he dies... or paying iht. marrying gives you all kinds tax exemptions eg iht so you would be silly to lose that.

Can't you just make sure your DH has a life policy that is more than the value of the house and it is left to you if the worse was to happen? We did that in a similar situation years back.

We have just had paperwork to sign from the solicitor asking us whether we want to be Joint Tenants or Tenants in Common. This looks like it puts all my fears to rest! We're going for joint tenants, but in the future may consider changing to tenants in common - my grandparents did this and it meant that as they died a few years apart then my mum and my uncles inherited half a house at a time and therefore avoided a large inheritance tax bill. Seems sensible if you want to leave your house to your children.

Good idea about the life policy, MrsCampbellBlack, thank you.