Do you get a better mortgage if you're married? This is a question lots of married couples are curious to know the answer to. Mortgages can be one of the single biggest investments a person makes, so it pays to know if there are any ways to get a better deal.
No. There is no specific benefit for getting married in itself, as relationship status alone won't change the deals you're offered. There's more to consider though, as being married can have some knock-on indirect effects which could actually in turn mean you get a better mortgage deal.
The thing that improves your chances of getting more agreeable mortgage terms is for you and your partner to be jointly financially associated. That means that you share a joint bank account together, or you have taken out joint loans before.
Many married couples opt to share a bank account, so in this sense being married can help you get a better mortgage deal. But only if you also both have clean financial histories and are able to pass the affordability checks. It's also important to know that in those circumstances a joint account can still improve your chances of getting a more agreeable mortgage deal even if you're not married, what matters is a good financial history, passing affordability checks, and your employment situation.
If you have a joint account your income will also be considered joint, which means that you will have a higher monthly income than if you were to apply for a mortgage alone. This is assuming both partners work. In this case, it could be possible to borrow more money or have more granular control over the monthly repayments or repayment terms associated with your mortgage. It could also mean you're able to pay a larger deposit. So in this sense being married is a benefit, but it could also apply equally if two working partners with a joint account were to apply for a mortgage too. This can also help with saving up for a deposit quicker or being able to offer a larger deposit, which could ultimately make your monthly repayments a little lower.
Something else to think about is that a joint account could be a hindrance as well as a help when it comes to finding the right mortgage deal for you. When you apply to a lender they will take a look at your joint account and examine both of your financial histories. If both you and your spouse/partner have clean financial histories, then this could indeed mean that you will get a more appealing mortgage rate.
If, however, you or your partner have financial strikes in your credit history, it's also possible that it could count against you. Even if you hadn't met your partner when they occurred, they'll still count against you. When you begin a joint account with someone you assume the judgement for their financial history as well as yours, so it's important to know if there's anything to be aware of ahead of time.
Examples of things that could potentially hinder the mortgage application process include:
This is far from an exhaustive list of potential financial pitfalls to be aware of. It's important that both you and your partner are open and honest with each other about your financial histories, so you know exactly what to expect when you make your application. If you're still unsure about whether there could be a potential issue with your mortgage application, contact a mortgage specialist for advice.
So do you get a better mortgage if you're married? In certain circumstances, the answer is yes, but it's important to always remember that it's never specifically because you're married. Providing you have a joint account it doesn't matter whether you're married or just in a relationship, you will still be able to potentially enjoy some benefits when it comes to the mortgages available to you.
Remember that it works to your benefit as well as to your potential drawback, however. Depending on your own and your partner's financial history you may not be able to get approved for the mortgage amount you want or to get affordable monthly payments.
It's possible that if you or your partner have bad credit you could dissolve your joint account and the partner with the better financial history could apply for the mortgage themselves. This could have some potential caveats too, however, as the mortgage company will only consider a single income which could lower the overall amount that can be borrowed. It's also a potential risk as it means the one partner is assuming the entirety of the responsibility of the mortgage. It's important to think seriously about any possible benefits to decide if it's worth it.
Whether you're single or married, finding the right mortgage for you can be difficult. That's why it always pays to contact a professional mortgage specialist who will be able to give you some insight to help you make the most suitable decisions for your circumstances. There is a lot to consider with a mortgage proposal. From the amount of money you want to borrow to the length of time you want to borrow it for, and how much you can afford to pay back each month, you should always make your decisions on the basis of quality information.
For more help and guidance contact the Mortgage Mentor team today.
Contact UsPlease note, as a mortgage is secured against your home/property it may be repossessed if you do not keep up with the mortgage repayments.
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