People who are married and seeking to be First-Time Buyers in York tend to opt for a joint mortgage rather than a sole name mortgage. This is because the combined salaries help them qualify for larger mortgages. This is beneficial because house prices have been increasing at a faster rate than wages.
Despite this, there are cases where it is best to only have one name on the application. Our Mortgage Advisors in York have provided information so we are able to explore these scenarios further in this article.
If one applicant has had a previous credit problem which is stopping them getting a mortgage, a sole name mortgage could be the right option. This is 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.
When one applicant is not working, you might also want to consider making a sole name mortgage application. This is because the maximum borrowing capacity of the couple will, generally, be 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 like a sole applicant.
It may simply 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. Luckily not all lenders share this view, but it can be an exhaustive task identifying which ones hold this view.