It can be advantageous to hold property in single names whilst having two applicants on the mortgage. This is known as joint mortgage sole ownership.
Sometimes the occasion arises where it is necessary to have joint mortgage sole ownership. There are various instances where having a mortgage in joint names but the title deeds in a single name can be advantageous.
One of the most common reasons is due to 1 applicant not having sufficient income to afford the loan on their own. By adding a 2nd applicant with an additional income then affordability power increases. Lenders will also look at both applicant’s current commitments including loans, credit cards and of course existing mortgage debt.
An important factor when adding on a second applicant is the age of the applicant. Lenders will usually lend to the 70th or 75th birthday of the eldest applicant. This is an issue if you need a long term to keep the repayments low but also need your parent on the mortgage for affordability as their age may result in a short loan term and higher mortgage repayments.
Anyone that now owns more than one residential property worldwide will be subject to an additional 3% stamp duty. Use our stamp duty calculators to work out the cost to you.
By placing the mortgage in joint names but only having one person on the deeds you can ensure that you are not penalised with the new additional stamp duty.
There are many benefits to having joint mortgage sole ownership but the advice needs to be right and you need to use the right lender, that is where Fox Davidson come into their own.
Contact us today to find out more.