Mortgage application alone

kingcharles82

Maybe this has been answered elsewhere but I am looking to clarify something I was told recently.

I was always of the opinion when married it was not possible to apply for a mortgage alone, your husband/wife would need to be part of the application process?

My wife has been saving and also recently received a gift of a site from her parents. Due to a previous investment with a friend I am currently in the process of selling the property which was purchased during the boom and I (jointly) will owe approx 100k to the banks. Montly payments for ten years. This is of course every reason why a bank should not ever consider me for future credit and I'm aware of that.

What I'm trying to ask is it beyond belief that my wife could apply through a mortgage broker as a single applicant and be successful.

She is full time employment
Average 60k income on her own
Current savings in her name 50k
Site value approx 25k
No loans/good credit history for over 5 years

Clearly I am the only negative aspect of her ability to buy or build a house and I am looking into how my previous mistake won't effect her as she appears to be financially in good shape.

Any views or opinions will be appreciated.

phormium

It is the policy of most banks that mortgage applications for the family home must be in joint names. I don't know if there are any banks that do otherwise, I think it's pretty standard policy across the board, it really was a reaction to the Family Home Act. Yes in theory they could get the other non applicant spouse to sign consent but in practice it's a lot easier and more straightforward for them to just insist on joint mortgages.

There is no difficulty for a married person to apply for a mortgage to buy an investment property for example in their sole name, it's when it is the family home that lenders insist on joint.

Plus realistically from an underwriting point of view it wouldn't make sense to advance money to one part of a couple where both their finances are obviously interlinked if they are living together and paying bills together in the property being mortgaged. The financial position of each one does impact on the other and therefore on the ability to repay.

Trish56

If it's going to be the family home and you are married it must be in joint names. Did you have problems in repaying mortgage on the Investment property if not you can still apply in join names and the monthly repayment will be taken into consideration.

Many people have investment properties that are in negative equity but can still qualify for a mortgage to purchase family home. If you have a bad credit rating well that will be a problem.