Most married couples usually make joint mortgage applications rather than a sole name mortgage. With house prices having risen quite significantly in recent years and with house price inflation outstripping wage increases over the years. For many mortgage applicants, two salaries are required to qualify for a large enough mortgage.
However, there are times when one salary is enough to support the mortgage application for the borrowing amount. There can also be further consideration as to why one of the applicants doesn’t want to go on the application. This could be due to;
There may be an issue with bankruptcy, low credit score, defaults or a CCJ from one of the applicants which is preventing them from getting a mortgage at this time.
For mortgage applications in this scenario, providing the spouse or partner is not connected to that issue then the mortgage application could be made in their sole name.
It is important that this person would need to be careful to try and avoid creating a financial association with their partner if they want to guarantee that their credit score would remain unaffected by that issue.
Maximum borrowing capacity, as a couple of borrowing capacity, is generally lower as rule than if the working applicant took out the mortgage in their sole name. This may be due for example when one partner is currently not working.
Age of the applicants is relevant and has an effect on the mortgage calculation. If you have one applicant aged in their 50’s for example, buying with a younger partner then it’s possible if the younger applicant is a good earner that they could borrow more as a sole applicant.
It may be that there are stamp duty or other tax implications which would lead to an applicant preferring to apply on their own.
Some Lenders can be quite strict about married applicants completing the mortgage in joint names. Most probably because they are concerned that this could in some way affect their security in the future.
Particularly if the couple were to divorce and the question of ownership and their rights to the share in the home is then raised.
Happily, not all Lenders share this (slightly prejudicial) view. Our experienced Mortgage Advisors in Leicester are here to help 7 days a week.