Can I add my partner or spouse to my mortgage?
With many people getting married later in life, or simply choosing to get their first house on their own, it comes as no surprise that the question of adding a partner or spouse onto your mortgage comes up time and time again. We’ve put together this article to tell you more about the process of adding someone onto your mortgage, the legal processes, and expenses you should be aware of, and other alternatives if you feel like adding your partner to your mortgage isn’t the right fit for you.
What should I do first?
The first step you should take when considering adding a partner to your mortgage is talking to your current mortgage lender. In the same way that you were required to, your partner will need to undergo credit and affordability to checks to make sure that they can also keep up with repayments. Your current lender may charge you a fee for this service, and regardless of how well you currently keep up with repayments, they are under no obligation to add your partner if your partner doesn’t pass the checks.
If your lender does agree to add your partner onto your mortgage, you will need to hire a solicitor who will help give you legal advice. You’ll need a solicitor to help you decide how you’re going to divide who owns what percentage of the house. Although it’s not nice to think about, working out percentages of the house will prove useful should you split up in the future and need to sell the property on. You might be charged a fee by the solicitor for their help, and so should take this into account when making your decision.
The two ways properties are normally shared are:
- Tenants in common- this is where you and your partner decide on the percentage each of you will own of the house. It doesn’t have to put 50/50, but, in the event of death, the deceased’s portion of the house will pass onto a next of kin, not necessarily you.
- Joint tenants- this is where you both have equal ownership of the house and if one of you should pass away, that person’s shares will automatically pass onto you.
However, if you’re in a situation where your lender denies your request, there are ways around it.
What if my lender doesn’t want to add my partner?
It’s not the end of the world if your current lender won’t add your partner to your mortgage- in fact, it could even be a good thing. Just because one lender won’t agree, doesn’t mean other lenders won’t. So it may be a good idea to speak to multiple lenders to see who can help you with what you need. You could remortgage your house with another lender, this time applying together for a joint mortgage, so that both you and your partner’s names will be on the application. Doing it this way may even result in you getting a better deal on your mortgage.
However, by applying for a joint mortgage, your credit score will then become associated with your partners- if they have a bad credit score, it can reflect badly on yours, even if yours is good. Again, this is another thing worth thinking about before committing to any final decisions.
What other options are out there?
If you’re not sold on the idea of you adding your partner or spouse to your mortgage, or it just doesn’t feel like the right move for the time being, there’s nothing stopping you from still moving in together. Another option you might consider is having your partner move in, but rather than adding them to the mortgage, it might be worthwhile just asking them for rent money, to cover the cost of living and things like utility bills. This way should the worse happen and you break up, they have no legal or monetary claims to your home.
At the end of the day, the decision to move in with your significant other, and how you intend to do it, is largely down to your preferences, and what makes you feel the most comfortable. But if you do have questions or are still unsure of what options are available to you, get in touch with one of our advisers who can give you the advice you might be after.