Married applicants tend to opt for joint mortgages as oppose to a sole name mortgage because the two salaries help qualify for larger mortgages. This is often needed because house prices have been increasing at a faster rate than wages.
Having said that, there might be cases where you only want one name on the application. We’ll explore these scenarios further in this blog post.
It’s possible that one applicant has a previous credit problem such as bankruptcy or a CCJ which is stopping them getting a mortgage. In situations like this, a sole name mortgage could be the right option, providing that the spouse or partner is not connected to the issue.
It is worth noting that the person applying would need to be careful to try and avoid creating a financial association with their partner. This is to guarantee that their own credit score remains unaffected by the issue.
Another example of when you might want to make a sole name mortgage application might be when one person is not working. In this situation, the maximum borrowing capacity of the couple is, generally, lower than if the working applicant opted for a sole name mortgage.
Age can also come into the calculation if you have one applicant in their 50’s. For example, if you buy with a younger partner who is a good earner, then it’s possible 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 apply for mortgages 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 Specialist Mortgage Advisors in Coventry are here to help 7 days a week.