The majority of married applicants would much rather jointly apply for a mortgage, as opposed to applying for a mortgage in a sole name. Property prices have inflated far beyond wage increases over the years, and in a lot of mortgage cases these days, two salaries are required in order to qualify for a big enough mortgage on a property.
However, sometimes you may find yourself in situations where one salary is enough to cover the amount you’re looking to borrow. On top of this, there could be specific reasons why one applicant doesn’t want to go on the application.
One of the applicants may have found themselves with a previous credit problem such as bankruptcy or a CCJ, which could prevent them from currently being on a mortgage, even if they would like one.
In cases of bad credit with one of the applicants, providing the other applicant isn’t tied to the credit problem in some way, be they a partner or a business partner, one applicant may still be able to apply for the mortgage in their sole name.
The person eligible for applying for a mortgage in their sole name would need to be careful to try and avoid creating any financial association with their partner. If you happen to get tied to a financial commitment with them in some way, this could seriously affect your credit score and harm your chances of obtaining a mortgage in the near future.
Other instances where an applicant may choose to go the route of applying in their sole name, can include if the other applicant is unemployed. As a rule, the maximum borrowing capacity for couples applying for a mortgage together is actually lower than if the working applicant took out the mortgage in their sole name. This is something we have seen happen quite a lot over our years in the mortgage industry!
The age of applicants can also become a factor in the calculation sometimes. If one of the applicants is say in their 50’s, a mortgage lender may not look at their situation favourably, due to the risks of old age and how inconsistent income could be at that age. That being said, if a younger partner applies as a sole applicant, this could make things a little easier as they have more opportunities for a bigger income than their partner.
You may find that there are stamp duty or other tax implications which would lead to one of the applicants to seek out their options of applying for a mortgage by themselves, rather than with their partner.
Depending on your personal and financial situation, some lenders are quite strict about married applicants having to do the mortgage in joint names. This is likely down to their perception of the future and the financial security of the situation. Mortgages become quite complicated if a couple were to ever divorce. Luckily this view isn’t seen by all lenders, so there are still options out there for applicants.
Our experienced specialist mortgage advice in Hull are here to help 7 days a week, so if you would like to speak to a dedicated Mortgage Advisor in Hull, please get in touch and we’ll get the ball rolling on your mortgage process.
Date Last Edited: 09/28/2023