Reply to: Mortgage -joint or sole

[tarbera]

life lesson

Good morning and thank you.

I know no one could make a decision for me - as I mentioned in one of the post I was looking to get wider opinions as I felt others may have had to make similar decisions in the past. It is always valuable to learn from others and use that knowledge to make a decision.

For £30 a month its a no brainer, do a joint mortgage, i am sure your wife says its absolutely fine, but that's just woman talk for did I marry a 'Tight Git' who is trying not to put my name on our house.

[konsultant]

Good morning and thank you.

I know no one could make a decision for me - as I mentioned in one of the post I was looking to get wider opinions as I felt others may have had to make similar decisions in the past. It is always valuable to learn from others and use that knowledge to make a decision.

[WTFH]

Its not about 30 quids or about domestic disharmony. We both are on the same page and willing to what is best for us. It was trying to understand if any of those options is better.

Again - I was never looking for joint name on deed and sole mortgage either.

It was about you wanting an answer none of us could give you. I gave you the answer, but you don’t even think that’s what you want to hear.

[konsultant]

£30 a month is a low price to pay for domestic harmony. I pay double that on dog chews to keep the old man quiet.

Its not about 30 quids or about domestic disharmony. We both are on the same page and willing to what is best for us. It was trying to understand if any of those options is better.

Again - I was never looking for joint name on deed and sole mortgage either.

[SueEllen]

Thank you all so far

NLUK - to be fair, I did mention in my OP that " My spouse has only recently started working as a permie (<6 months)." :P :P

That is not the same as only being in the country for less than 3 years.

For example your spouse could have been a full-time student in the UK for 10 years and so their credit rating could have not been good enough to lend on for a mortgage, but due to their residence in the country could easily be fixed by just working for 6 months.

[Maslins]

Perhaps I'm missing something...but any reason you can't still buy the property jointly, but have the mortgage solely in your name? Ie superficially it sucks for you, you're getting 50% of the asset but 100% of the accompanying liability...but if you're married, does that matter?

Perhaps there is an argument that getting her on the mortgage will be good for her long term, as she'll be building up some credit rating. I might be inclined to just get her a credit card (with a very low limit of course ) and ensure that's paid in full each month for this purpose.

[northernladyuk]

£30 a month is a low price to pay for domestic harmony. I pay double that on dog chews to keep the old man quiet.

[konsultant]

Thank you all so far

NLUK - to be fair, I did mention in my OP that " My spouse has only recently started working as a permie (<6 months)." :P :P

I'm not sure about this but it doesn't sound right to me. But with a will it's meaningless anyway.

True - I will recheck this with my mortgage broker.

[northernladuk]

Now that we have some more pertinent information, I would point out that getting a joint mortgage probably would be good for her credit rating.

And it only took 27 posts to wring out some key details from a poster asking for opinions on a complex situation. Not bad going :

[Lance]

Well its not "bad" credit history but "lack" of credit history. The reason for higher rate is due to limited choice of lenders. In sole - I get whole of market.

Lack of credit history is bad credit to all intents and purposes.

It is interesting in what you say about adding to title deed. The broker I spoke to said if I add her in future, I will have to pay stamp duty the second time. Not sure if both are the same.

I didn't, but then mine was below the SD threshold. I'm not sure about this but it doesn't sound right to me. But with a will it's meaningless anyway.

When you say move house, you mean on the deed and mortgage for future second property?

I mean buy another house to move into, a nice bigger one. You'll need to get your name on the title deed of the new house, just do it for both of you then. Unless you're buying you first and last house (which would be highly unusual).

[WTFH]

Now that we have some more pertinent information, I would point out that getting a joint mortgage probably would be good for her credit rating.

[konsultant]

Does that then mean she doesn't have as good a credit history?
It certainly sounds like a credit risk decision.

As I said earlier it will cost to get someone added to the title deeds. So if you want to do that later then you can:
1) Do it after a few years when the provider is happy. It will cost to update.
2) Do it when you move house. You'll be paying that same cost when you buy a new property so just add her on then.

For option 1 just work out whether the extra cost of the mortgage is greater than the cost of updating title deeds. A solicitor will quote you but when did it (I owned the house when I met Mrs. L.) it was about £2k

Well its not "bad" credit history but "lack" of credit history. The reason for higher rate is due to limited choice of lenders. In sole - I get whole of market.

It is interesting in what you say about adding to title deed. The broker I spoke to said if I add her in future, I will have to pay stamp duty the second time. Not sure if both are the same.

When you say move house, you mean on the deed and mortgage for future second property?

Thanks

[Lance]

Yep - because she has been in UK for less than 3 years.

Does that then mean she doesn't have as good a credit history?
It certainly sounds like a credit risk decision.

As I said earlier it will cost to get someone added to the title deeds. So if you want to do that later then you can:
1) Do it after a few years when the provider is happy. It will cost to update.
2) Do it when you move house. You'll be paying that same cost when you buy a new property so just add her on then.

For option 1 just work out whether the extra cost of the mortgage is greater than the cost of updating title deeds. A solicitor will quote you but when did it (I owned the house when I met Mrs. L.) it was about £2k

[konsultant]

Did they tell you why it would cost more with your wife on the mortgage?
Did you ask?

Yep - because she has been in UK for less than 3 years.

[Lance]

It was based on mortgage illustrations and conversations with specialist mortgage advisor.

Did they tell you why it would cost more with your wife on the mortgage?
Did you ask?