When you start applying for a mortgage, we usually find that the vast majority of applicants in relationships will opt for a joint mortgage instead of applying for a mortgage in one of the couples’ sole names.
With property prices continually fluctuating ahead of wage increases, lenders prefer first time buyers in Manchester to have two incomes, rather than both of them living there, and only one person is liable for the mortgage.
Sometimes there are situations where it’s acceptable for a sole name to apply for a mortgage. Be that it’s a personal choice or down to circumstances, it can be anything from one of the applicants not keen to have their name on the mortgage to a financial issue that cropped up.
Financial issues could be bankruptcy to county court judgment, factors like these that could affect the other applicant, and their chances of obtaining a mortgage. In situations like these, it’s much better than having no tied finances, and only one applicant applies for the mortgage in their name.
It’s worth noting that if one half of a couple gets into trouble financially, it can significantly harm the other half attempts to apply for credit, especially something as significant as a mortgage loan.
The maximum borrowing capacity for a couple with only one applicant in employment will be lower than it would’ve been if the applicant who is employed had applied in their sole name.
Age is another factor that can affect the maximum amount you can borrow. For example, if you are over 50 and plan to take out a mortgage with a younger partner with a higher paid job, they have more time to pay off the mortgage. It’s then best to apply in their sole name, as they may have access to a much higher mortgage amount.
The effects of stamp duty or something else relating to tax may be a potential reason a couple may choose only to have one of them apply for the mortgage in their name rather than as a couple.
You’ll find that there are many lenders with strict criteria regarding married mortgage applicants, as it is a mortgage that will involve two people who are connected firmly. Whilst applying under a joint name gives the lender security, it can have its problems.
The main reason is that if you happen to get divorced, it’s a complex process trying to remove one of your names from the property. Our team of mortgage advisors in Manchester can help with this, but you should give plenty of thought before jumping in headfirst with your partner.
Here at Manchestermoneyman, we have Specialist Mortgage Advisors in Manchester available 7 days a week to help you find the most suitable mortgage for your circumstances.
We are proud of the level of service we can provide home buyers and homeowners alike, so please do book yourself in for a free mortgage appointment, and we’ll see how we can help!