When it comes to looking at applying for a mortgage, we find that it is common for most applicants in relationships to look at making a joint mortgage application rather than making a single application for a mortgage under their sole name.
With property prices ever-increasing over the years, as well as inflation outstripping the increases in wages, we find that in most instances, a couple of first time buyers in Nottingham with two salaries are usually required in order to obtain a large enough mortgage that covers what the buyers are looking to achieve.
That being said, sometimes there are circumstances that arise which may allow for a sole name to apply for a mortgage. Sometimes this may be down to one of the applicants not wanting to have their name tied to the mortgage in question.
It may possibly be that they have had a previous credit problem, say for example a bankruptcy or a County Court Judgement, which is stopping them from getting a mortgage at the moment.
When something like this arises, so long as the spouse or partner has no financial connection to that issue, they could apply for the mortgage in their sole name.
That person should also be careful to try and avoid creating a financial association with their partner, in order to protect their credit score from any future harm.
Another example we see from customers is where one of the partners is currently out of work, be that by choice or something else. Generally the rule of thumb is that the maximum borrowing capacity for a couple with only one employed applicant, is lower than if the working applicant applied for a mortgage in their sole name.
This is quite a common occurance amongst the mortgage world. Age can also be factored into the calculation, if you have an applicant who is maybe older, say in their 50s or so.
As an example of how this applies to your mortgage, if you are buying with a younger partner who also has a well paying job, it is entirely possible that they could have access to a higher mortgage.
There may also potentially be stamp duty or other tax implications that could lead to an applicant potentially looking to apply for the mortgage in their sole name as well.
There are lenders that tend to have pretty strict criteria when it comes to married mortgage applications, as it will be taken out with two interconnected applicants.
Whilst it provides them with security, should they need to chase for payments, it also brings complications if something were to go wrong, such as a divorce.
Thankfully, not all lenders will share this rather prejudicial view. Bearing all we have touched upon in mind, our experienced specialist mortgage advice team in Nottingham will be here to help you from early until late, all throughout the 7 days of the week.
We’re proud of the service we have provided thousands of home buyers and homeowners alike, so would love to help you get started with your mortgage journey!