If your partner is staying with you at your house and is contributing to the bills, it is a valid response to have them included on the mortgage of the house. The technicalities behind adding a partner to your mortgage or if it is the right fit for you are questions that can trouble anyone.
So, here is everything you need to know about adding your spouse to your mortgage, the legal process behind it, the expenses it can bring, and other options if that is not the right step for you.
The First Step
When it comes to adding your partner to your mortgage, the first thing that you should do is talk to your present mortgage lender. Similar to when you started your mortgage on your house, you were required to undergo affordability and credit checks to make sure that you could keep up with your repayments; your partner will also need to go through the same checks.
These checks are to make sure that they can keep up with the repayments. Your present mortgage lender might charge you a fee for conducting these checks.
Additionally, the mortgage lender is under obligation to add your spouse to your mortgage if they do not pass the affordability or credit checks. This decision is in their hand, irrespective of how well you might be keeping up with your mortgage repayments.
There is a possibility that your current mortgage lender might refuse to add your spouse to your mortgage. Your next option might be to hire a solicitor to get yourself some legal advice in such a situation. You will also need the legal advice of a solicitor when you decide which one of you will own how much percentage of the property.
Sometimes, you may end up in a what-if situation. This means that you need to start considering the repercussions of some possible future concerns relating to the mortgage. So, even if it is not pleasant to think about you must consider the fact that incase you and your spouse tend to split up in the future, it will be useful to have the house percentage worked out that each of you owns.
This will be extremely useful if and when you decide to sell the property after the split. The solicitor you hire for legal advice might as well charge you a fee for the advice, so consider that expense when you decide on your step forward.
There are two ways in which properties are generally shared. These are as follows:
1. Tenants in Common
In this situation, you and your partner decide the percentage that each of you will own. The percentage of the house does not need to be equally divided, i.e., 50/50. But, in the event of death, the portion of the house of the deceased’s will be transferred to the next of kin. This person might not necessarily be you.
2. Joint Tenants
This is, comparably, a lot simpler way of sharing your property since, in this, the property is equally divided between you and your spouse. In the event of death, the deceased’s portion of the house will automatically be transferred to you.
If you end up in a situation where your current mortgage lender refuses your request to add your partner to your mortgage, then there are certain ways around it. Let’s discuss these ways and see if they’re a fit for you.
Your Lender Refuses to Add Your Partner
If a situation develops where your current mortgage lender refuses to add your spouse or partner to your mortgage, it might not be the worst thing in the world. Just because your mortgage lender has refused does not mean that other lenders will refuse as well.
It might be smart to seek other lenders and speak to them about your problem. You must also consider if they might be willing to help you with it. You can apply with your spouse or partner for another lender and a joint mortgage this time around when you remortgage your house. This way, both of your names will be on the mortgage application. Sometimes, in this way, you can even end up getting a better deal on your mortgage.
However, another thing you need to remember is if you apply for a mortgage as a joint mortgage, then your and your partner’s credit scores will be associated. A bad credit score for your partner can mean a bad credit score for you as well, despite the fact that you have a good credit score. So, consider all the consequences and what-if situations before you make any final decision.
Other Options for Your Mortgage
If the idea of adding your partner or your spouse to your mortgage does not sound like the best idea to you, there are other options that you can choose for the time being. There is nothing stopping you and your partner from moving in together, despite the fact that they are not on the mortgage.
You and your partner can consider the option that they can move in with you, and instead of being added to your mortgage, they can just pay rent money. This money can cover the bills, the cost of living, and other utility necessities. This option is also the best if you both happen to split up after a while. In that case, your partner would not have any monetary or legal claim on the house.
The decision to move in with your partner or include them on your mortgage is yours to make at the end of the day. You need to consider your partner’s and your preferences very carefully. Also, you need to work out a solution that makes both of you comfortable about the mortgage situation.
So, it is best that you consider all of your options, as laid out above, before making a decision.