Cant apply for mortgage alone if married

fret_wimp2

Im looking for a mortgage. After discussing it, we have decided that i will apply alone, not joint with my wife.

KBC tells me if im married, any mortgage application must be joint so i cant apply alone.


What is the logic of their decision? I asked but they could not give any reason, just said its policy.

tinkerbell

Presumably because once you're married, your spouse will automatically have rights to the property.

riclad

Under irish law a wife owns half the property ,
so it may be simpler to them to have info on your wife,
just in case there,s a problem in future ,
eg your personal income may go down,
while your wife still earns whatever she earns now .
There was a case on the radio a few weeks ago,
a man declared bankruptyc, stopped paying the loan,
even so the wife still had a large financial stake on the property ,even though bank was recieving no payments on the loan from anyone .
his loan was 260k,
house was worth 130k.
in theory she owns half the house even if she does not pay part of the mortgage .

Victor

The bank will want recourse to 2 incomes and sets of assets, not 1.

phormium

It's been bank policy for many years, probably triggered by the Family Home Protection Act.

All banks will insist on a mortgage for the family home being in both names if married.

Mrs OBumble

op I'd this for a house where you and your wife will live?

If so, you answer is as per the posts above.

If not, the policy may be different.

riclad

THE Banks have a formula the joint income multiplied by x ,
and you need will x per cent maybe 20 per cent deposit.
They also work out could you continue to pay if rates rise by 2 per cent in the future .plus You,ll need to have
money for legal fees, 1000- 1500 approx .
You can get free advice from a mortgage broker ,re how to get a loan,how much could you borrow .
OF course i know someone who got 2 investments loan,s on an average wage in 2005,to buy apartments
but times have changed .
The banks are much stricter now under central bank guide lines .

Murray007

I Bought an apartment near where I worked because I getting to old for a four hour round trip commute. It was not the main family home but I was put under serious pressure to have the apt in joint names. Truth was my husband has property assets in his name and I felt if I was paying the mortgage I should have the apt in my name. Even my own solicitor was pressuring me to change my mind. In the end I challenged the bank to justify its position and they backed down.

riclad

Could you not apply to a bank as a single person,or is that a form of fraud,?
i know married people ,husband got mortgage ,wife name is on the deeds,
wife was not working in the first 5 years of the loan.
She
busy taking care of kids ,so her income was zero.for the first 5 year.i presume her name was on the mortgage application,
husbands income is 90k approx per year.

is there no such thing as the non working wife,
or woman raising children taking a career break.?for a few year,s

cml387

riclad wrote: »

is there no such thing as the non working wife,
or woman raising children taking a career break.?for a few year,s

Of course there is. If one income is sufficient to service the mortgage, the bank will be happy. But the house is jointly owned by both spouses, regardless of who is paying.

phormium

Of course you can have a non wage earning wife/husband, that's not the issue. If married they still need to be party to the mortgage on the family home.

You can buy a second house/holiday home/investment property or any number of other properties in sole name if married but it's just the family home that must be jointly mortgaged.

riclad

The bank want info on the wife ,s income as under the family home law she owns half the house even if she makes no financial contribution to the loan .
And they might need this info at soem point in time, if theres a problem in future re the payments of the loan,
say you get sick for 6months and have to reduce your loan payment per month.

4ensic15

riclad wrote: »

Under irish law a wife owns half the property ,
.

That is simply not the case.
Each spouse owns his or her own property.
The consent of the non owning spouse is needed for the sale of a family home.
A spouse has legal rights under a will or on intestacy.
In a separation or divorce the court can allocate assets, no matter which spouse owns them.

riclad

IF the wife has her name on the deeds, after the loan is paid off,
doe,s that mean she owns 50 per cent of the family home .

4ensic15

riclad wrote: »

IF the wife has her name on the deeds, after the loan is paid off,
doe,s that mean she owns 50 per cent of the family home .

Not necessarily. She might own 100%. Ultimately it would take a complicated analysis to say what percentage of the family home a person owns.