A mortgage in my wifes name alone

hairyslug · 12-09-2015 07:59AM #1

I've posted before in here, only recently about us looking for a NE mortgage, this would have been in my name.

We have considerable savings, that along with the basic calc of 3.5 x my wife's income would get us what we want.

Now for the questions.
Would my wife's application take into account my debts or income.
My wife's income is purely social welfare, carers etc.
In the real world my wages would be able to cover both mortgages and bills but from what I've been told there is no moving from the 3.5 times the income

davo10 · 12-09-2015 08:05AM

hairyslug wrote: »

I've posted before in here, only recently about us looking for a NE mortgage, this would have been in my name.

We have considerable savings, that along with the basic calc of 3.5 x my wife's income would get us what we want.

Now for the questions.
Would my wife's application take into account my debts or income.
My wife's income is purely social welfare, carers etc.
In the real world my wages would be able to cover both mortgages and bills but from what I've been told there is no moving from the 3.5 times the income

Apart from the issue with the bank, consider the implications of your unfortunate demise if the mortgage is in your wife's name only. She now has to carry that burden unchanged, if both your names were on it and you have a mortgage insurance policy (required), then the loan is paid off on the death of the first insured.

The_Conductor · 12-09-2015 08:10AM

If your wife's income is social welfare and carer's allowance- to be brutally honest- I'm not aware of any lender in the Irish market who would consider her as a candidate for a mortgage- full stop. Income such as this- is not normally considered, at all, from a mortgage perspective.

There are still negative equity mortgages available (PTSB are still advertising them)- that is your best bet.

And yes- when you're married- both husband and wife are considered jointly and severally liable for a mortgage on the family home- and both have rights associated with the property. Getting a mortgage just in your wife's name- will not be entertained by anyone- if you intend to live in the property (as aside from anything else- you will have rights on the property which would dilute any clear title a prospective lender might have on the property).

Its a complete non-runner. Talk to an independent financial advisor to get their feelings on what your options are- however, from what you've posted here- your preferred option is a complete non-runner.

hairyslug · 12-09-2015 08:10AM

davo10 wrote: »

Apart from the issue with the bank, consider the implications of your unfortunate demise if the mortgage is in your wife's name only. She now has to carry that burden unchanged, if both your names were on it and you have a mortgage insurance policy (required), then the loan is paid off on the death of the first insured.

I'd have no issue with my name being on it, would it affect the application though.
I've been on to the calculator page of my bank (I know it's best case scenario on these things) and if my wife goes as lead applicant with me as second, including all my bills and mortgage, we can still borrow enough. Will my current NE affect the application

The_Conductor · 12-09-2015 08:12AM

Yes- your joint borrowing capacity is normally reduced by the assessed negative equity of the pre-existing property- and your joint repayment capacity is normally reduced by the periodic (aka monthly mortgage) payments on the pre-existing property- to the max of the percentage of outgoings allowed (typically 40%- though they don't say this). They will also take into account any other loans you have- such as a car loan- and what the periodic payments on that might be..........

amdublin · 12-09-2015 08:15AM

I am no expert but is social welfare considered an income in the sense of mortgage application?? What if her benefits were reduced to zero in the next budget.

Ps. What kind of benefits is she on that if you multiply them by 3 you get a mortgage amount. I want some of that please!!!!

hairyslug · 12-09-2015 08:32AM

Sorry I can't multi quote, am on the phone.

For the amount we claim on SW, she's a carer and her work far outweighs what she gets (but that's a discussion for another day ðŸ˜Š) and our savings will cover half of the house.

I've been onto the bank a few times and we have a meeting next week about it, I'm just very impatient, they are open to the idea of her payments being included, whether they are included to the same scale as a regular salary is an unknown at the moment.

So from this, realistically, should I be prepared to be offered a mortgage on my wage (hopefully with a % of hers included) less the NE on the sale of our current house.

3DataModem · 12-09-2015 08:43AM

davo10 wrote: »

Apart from the issue with the bank, consider the implications of your unfortunate demise if the mortgage is in your wife's name only. She now has to carry that burden unchanged, if both your names were on it and you have a mortgage insurance policy (required), then the loan is paid off on the death of the first insured.

He can get a mortgage protection policy even if the mortgage is not in his name.

professore · 12-09-2015 08:44AM

amdublin wrote: »

I am no expert but is social welfare considered an income in the sense of mortgage application?? What if her benefits were reduced to zero in the next budget.

Ps. What kind of benefits is she on that if you multiply them by 3 you get a mortgage amount. I want some of that please!!!!

Slightly OT, but I'd say someone in this situation has more disposable income and more security than many working.

Sunny Dayz · 12-09-2015 08:48AM

I wouldn't go by the banks online mortgage calculators. There was a big difference between what the online calculators gave us and what the actual banks were willing to lend us....

davo10 · 12-09-2015 04:00PM

3DataModem wrote: »

He can get a mortgage protection policy even if the mortgage is not in his name.

How to you go about getting a protection policy to cover payments you are not paying? Is that not a life insurance policy and would it not be more expensive as the amount owed is not decreasing over the term like a mortgage?

3DataModem · 12-09-2015 04:18PM

davo10 wrote: »

How to you go about getting a protection policy to cover payments you are not paying? Is that not a life insurance policy and would it not be more expensive as the amount owed is not decreasing over the term like a mortgage?

It doesn't cover the payments, it covers the balance. Some companies call it a decreasing term benefit. It's totally possible.

sarachryan · 13-09-2015 07:42AM

I'm informed you can get a mortgage in your own name for principal residence if married provided the spouse disclaims any interest after independent legal advice. Not all banks will do it but some do.

The_Conductor · 13-09-2015 08:06AM

sarachryan wrote: »

I'm informed you can get a mortgage in your own name for principal residence if married provided the spouse disclaims any interest after independent legal advice. Not all banks will do it but some do.

You can do this- however, Revenue do not accept it (in a similar manner- they won't recognise it if you hold it in trust). If it were challenged in court- you'd have exceptional difficulty defending it, given the status of a Principle Private Residence in Irish Law. All it needs is the slightest hint of coercion and even an elaborate arrangement isn't worth the paper its written on. There are a couple of dozen of these type arrangements that have been overturned in the last few years.

sarachryan · 13-09-2015 08:23AM

Probably a very stupid question but what is the effect of Revenue not recognising it?
Let's say that the non owning spouse gets the necessary legal advice and the bank give the mortgage - can the purchase go ahead?
I can see how this could arise as a joint decision where one spouse has disqualifying credit history

amdublin · 13-09-2015 08:29AM

professore wrote: »

Slightly OT, but I'd say someone in this situation has more disposable income and more security than many working.

I'll admit I don't know much about sw/benefits.

I first assumed she was on the dole and they wanted to get a mortgage on this basis of this.

It seems she's a carer and is paid for this. My point is, is this seen as employment/salary for purpose of applying for mortgage.

My other point is (which you are saying the opposite - and I don't know enough to agree or not) is that most mortgages are given and the bank/underwriter figure someones earning power/salary will rise. If this is a carers allowance and not a salary persay could it be reduced (or eradicated) in future budgets?

phormium · 13-09-2015 09:01AM

I don't know of any bank who will give mortgage on family home in one name only no matter what side arrangements disclaiming rights or not, why would they bother? This would be a major exception to their policies and realistically none is going to do it.

Even if they did your wife's income of social welfare is not sufficient to get a mortgage even if it was taken into account. While some banks take a portion of certain social welfare incomes such as pensions or disability or in some cases carer's benefit it cannot form a major portion of the income for calculation purposes.

Family home mortgage will have to be in joint names and will be underwritten based on all debts/allowable income of both applicants.

hairyslug · 13-09-2015 09:20AM

amdublin wrote: »

I'll admit I don't know much about sw/benefits.

I first assumed she was on the dole and they wanted to get a mortgage on this basis of this.

It seems she's a carer and is paid for this. My point is, is this seen as employment/salary for purpose of applying for mortgage.

My other point is (which you are saying the opposite - and I don't know enough to agree or not) is that most mortgages are given and the bank/underwriter figure someones earning power/salary will rise. If this is a carers allowance and not a salary persay could it be reduced (or eradicated) in future budgets?

Carers is considered a taxable income, but yes there is a possibility that it could be reduced (eradicated would be political suicide)
We have moved away from the possibility of my wife buying in her name, it was an impulse thought that never had any legs (in our circumstances)

hairyslug · 20-09-2015 03:47PM

Met the mortgage advisor during the week.
My idea of keeping the current house as a rentable property was shot down straight away. However, they can offer what we need. Things have changed though in the last 7 years, I do remember it being much easier. But they are quite flexable with a few things.

One thing stuck in my mind, didn't see any point in starting a new post for it but they insisted that the sale of my house and the purchase of the new house happen on the same day. I know it's their game we are playing but there has to be some leeway with this. It will take either a stroke of luck that the house we like is still on sale or a very understanding seller and buyer.

cerastes · 20-09-2015 04:06PM

purely hypothetical and not related to the OPs enquiry as Ive read through the whole thread rapidly,

What if a married couple who were/are seperating with the original owner staying at the principal residence and the person leaving wanted to buy a property, are they still viewed in the same light as two people married?

The_Conductor · 20-09-2015 04:41PM

Its called 'being in a chain' and is logistically a nightmare to manage. Lots of people do it- but to call it stressful is the understatement of the year.

I think most of us knew the mortgage advisor was going to tell you that letting out property 1 was a non-runner- essentially you're going to be allowed move the NE associated with Property 1 onto Property 2- which will bollox up the LTV ratio of property 2- but you'll sort that out over time.

Congrats that you know what to do- and how to do it- you are right of course- things were very very different 7 years ago- it is a different world..............

April 73 · 20-09-2015 05:21PM

Selling & buying on the same day isn't impossible. It can be stressful but as many more people will need to sell to buy again - rather than keeping the first house as well - it will become very common.
We sold & bought on the same day earlier this year. In fact the chain involved four couples, four solicitors and three houses and all three house sales closed on the same day. Granted we didn't get the keys to our house until 4pm & it was stressful but not impossible.

phormium · 20-09-2015 05:57PM

Cerastes, to answer your query, in that scenario the person could make a single application but there will either be a requirement to produce a separation agreement before applicaition or it will be a condition on the loan offer that it is produced before drawdown.

A mortgage in my wifes name alone

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