Can one spouse apply for a mortgage?

There are all sorts of reasons why you might be asking 'can one spouse apply for a mortgage?', and it happens more often than you might think. Perhaps one spouse has an excellent credit rating while the other has had issues with adverse credit, and you want to access the lowest rates for your mortgage.

Another scenario might be that you want to invest in a buy-to-let and, by having the property in your name alone, you could access certain tax benefits that wouldn't be available if it is jointly owned. Whatever your reasons, let Mortgage Mentor run you through your options in this guide.

So, can one spouse apply for a mortgage?

In a word: yes. If you're married and seeking a mortgage on a home for your and your spouse, many mortgage lenders will prefer to have both names on the mortgage. However, one spouse can apply for a mortgage to find the most suitable deal for your needs.

How one spouse can apply for a mortgage

It is wise to start this process by consulting a mortgage broker with experience in arranging single mortgages for married applicants. This will ensure you get tailored advice to help you find the most suitable deal. Mortgage Mentor can help you navigate the process and place your mortgage application with a lender that is more likely to approve.

It may be possible to purchase a property using only one spouse's credit rating to access the lower interest rates. The other spouse can always be added to the mortgage later on when their credit rating has improved.

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Important considerations

• Many lenders are cautious about single applications from married borrowers. However, they are usually happy to accept joint applications from unmarried people.
• The crucial question is whether your income is sufficient for the mortgage. If your spouse is not on the title deeds, the lender may view them as a financial dependent, and this will impact your affordability.
• Without your spouse on the application, their income will not be included when calculating your affordability.
• You may find more lenders willing to consider one spouse applying for a mortgage when it involves a buy-to-let property or a second home for work purposes.
• Buy-to-let is seen as more acceptable among lenders because they know that there are tax benefits to buying in a single name.

Overcoming the challenges of one spouse applying for a mortgage

Though there are challenges for married people applying for a single mortgage, they needn't be deal-breakers. With high-quality advice from a trusted broker, you can meet those challenges head-on.

Potential issues can include:

• The deposit: If your spouse isn't named on the mortgage application but is providing some or all of the deposit, this will be seen as a gift to you, and lenders may not accept this. One possible solution would be for your spouse to sign a waiver of any rights to the property.
• Ownership: If your spouse gifts the deposit and will also live in the property, it becomes difficult to separate ownership. It may be difficult to find lenders who will agree to this kind of arrangement, but a broker with whole-of-market access can help you maximise your chances.
• Adverse credit: If you're trying to sidestep your spouse's credit issues, many lenders will see through this and force a joint application. You will need to find a lender willing to consider a loan to just the spouse with clean credit.
• Divorce/separation: Seeking a solo mortgage when separating and one spouse is remaining in the house could be a way to buy your ex out of the mortgage. In this scenario, you will need to show evidence of the separation, such as the start of divorce proceedings. You will also need to demonstrate your ability to keep up with payments alone.

One spouse applying for a mortgage with bad credit

It can be difficult to get a mortgage with bad credit if you are married and applying in just your name. Here are some of the key considerations:

• A single mortgage may be a good option if you or your spouse have bad credit. However, depending on how severe the credit issues are, lenders may require a larger deposit.
• A joint mortgage is still worth considering as there are some attractive rates and criteria for mortgages with bad credit. With the right broker in your corner, you may find some competitive options.
• A good broker can help you weigh up the pros and cons of getting a single mortgage and a joint one.

Get expert advice

If you need a tailored answer to the question "Can one spouse apply for a mortgage?", speak to the experts at Mortgage Mentor. You can call us or make an online enquiry, and one of our advisers will be able to run you through your options. Talking to a professional won't cost you anything, and you will be under no obligation, so please get in touch today.

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FAQs

Can one spouse apply for a buy-to-let mortgage in a sole name?

Yes, and this is usually easier to do. Since there won't be the issue of your spouse living in the property, most buy-to-let lenders won't see any problems with your application. Of course, you need to meet their lending criteria and remember, some types of buy-to-let mortgages are not regulated by the FCA.

Can you use a joint deposit for a sole mortgage when married?

This will not be acceptable for most lenders since your partner would need to formally waive any rights to the property despite paying money towards it. They would have to put forward their money as a gift, but most lenders will not like this arrangement.

What are the disadvantages of one spouse applying for a mortgage?

Your choice of lenders and products will be severely limited. Also, your affordability probably won't stretch as far since the lender's calculations will be based on a single income. Always remember, as a mortgage is secured against your home or property, it could be repossessed if you do not keep up the mortgage repayments.

https://www.simplybusiness.co.uk/knowledge/articles/2021/01/new-buy-to-let-tax-rules-2021/