I have a residential mortgage and would like to buy a property, should this be in my wifes's name only?

Posted on 5 October 2007

I currently have a property with a residential mortgage in my name only and rented out with lenders permission. Would like to buy a property in the North West soon. Would it be possible to get a residential mortgage in my wife's name only? We are currently overseas. My wife currently not working through choice, but will recommence in New Year. My income 45K. Just trying to avoid costly BTL solution. Thanks for your help.

Ian

Hi Ian,

As you have permission to let there is no reason that you can't be on the new mortgage.  Lenders would only stipulate that you, firstly, have permission to let and secondly, that the rent is enough to pay the mortgage on the original property.

If your wife buys alone her own employed income would need to cover the whole debt, yours cannot be used, so you'd have to wait until she has re-commenced employment, and is also out of any probationary period. You could stand guarantor for her, although as I say, it sounds like you don't need to.

Also, be aware that there is often stamp duty issues when one partner is added to a mortgage later on, as they are effectively buying half a property from their partner. I can't give tax advice so you must see a solicitor, but in general I'm told best to avoid the situation in the first place if the property is large.

Katie.

Category: Second properties

 

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