Most married applicants prefer to do joint applications than a sole name mortgage. With property price inflation outstripping wage increases over the years. In many instances, two salaries are required in order to qualify for a big enough mortgage.
However, sometimes situations occur where one salary is enough to justify the borrowing amount. Additionally, there is a background reason why one applicant doesn’t want to go on the application.
It could well be that one applicant has had a previous credit problem such as bankruptcy or a CCJ which is stopping them getting a mortgage at the moment.
In that case, providing the spouse or partner is not connected to that issue then the mortgage could go in their sole name.
That person 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 could be where one partner is not working. As a rule, the maximum borrowing capacity as a couple is actually lower than if the working applicant took out the mortgage in their sole name. Actually, this happens quite a lot!
Age also comes into the calculation sometimes, 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 are quite strict about married applicants having to do the mortgage 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 Specialist Mortgage Advice team in Hull are here to help 7 days a week.