More often than not, married applicants tend to opt for joint mortgages as opposed to a sole name mortgage. This is because, in many instances, the two salaries are needed to qualify for larger mortgages which are as a result of house prices increasing at a faster rate than wages.
Having said that, there are situations where one salary is enough to justify the borrowing amount. There may also be a reason why one applicant doesn’t want to go on the application.
It’s possible that one applicant has a previous credit problem such as bankruptcy or a CCJ which is stopping them getting a mortgage. In situations like this, a sole name mortgage could be the right option providing that the spouse or partner is not connected to the issue.
It is worth noting that the person applying would need to be careful to try and avoid creating a financial association with their partner if they want to guarantee that their own credit score would remain unaffected by that issue.
Another example of when you might want to make a sole name mortgage application might be when one person is not working. As a rule, the maximum borrowing capacity as a couple is lower than if the working applicant took out the mortgage in their sole name.
Age can also come into the calculation if you have one applicant in their 50’s. For example, if your First Time Buyer in Manchester who is planning to buy with a younger partner who is a good earner, then it’s possible they could borrow more like 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 are quite strict about married applicants having to apply for mortgages in joint names. Most probably because they are concerned that this could in some way affect their security in the future, especially if the couple were to divorce.
Luckily not all Lenders share this (slightly prejudicial) view.
With this in mind, our experienced Mortgage Advice in Manchester team are here to help 7 days a week.