What are the implications of adding another person to your mortgage? Jack Tutton of SJ Mortgages explains the pros and cons…
The Question
I own a two-bedroom house and I’m due to remortgage in March 2024. Although I bought the house by myself, my boyfriend moved in a year ago and is paying some of the bills plus ‘rent’ towards the mortgage.
I am aware, when my deal ends, I’ll be looking at more expensive mortgage rates, so I am considering two possibilities.
One is to get my boyfriend added as an owner to the property and therefore also onto the mortgage agreement. I wondered if this would improve my affordability and give me more options. If so, what will this involve and should I involve a broker and solicitor?
The second option is for him to continue paying rent. In which case would a mortgage lender include his rental payments as income and therefore improve my affordability?
Jack’s Answer
Adding your boyfriend to the mortgage agreement and property title can have implications on your affordability and options.
Introducing another owner to the property and mortgage may improve your affordability because you will be combining both incomes, and it would potentially increase the amount you are able to borrow.
However, it’s important to note that adding someone to the property title and mortgage is a significant legal and financial decision that should be carefully considered.
If you decide to pursue this option, it would be advisable to involve both a mortgage broker and a solicitor. A mortgage broker will be able to help you navigate the process of adding your boyfriend to the mortgage and find you suitable options.
A solicitor will assist with all the legal aspects of adding someone to the property title, ensuring that all necessary documentation is in place and that both parties understand their rights and responsibilities.
In order to help affordability the ‘rent’ that your boyfriend pays may be able to be used to boost your income however the numbers of lenders who will consider this is low.
It’s important to consider the pros and cons of each option. We would be more than happy to give you a comprehensive review of your situation, so you know what your options are as this is a large financial commitment.
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Meet our experts Scott Barron and Jack Tutton
Scott and Jack are co-founders of SJ Mortgages. With over 15 years industry experience and after working for large corporations, they decided to set up SJ Mortgages with the aim to provide their clients with expert advice alongside a bespoke service.
Being a totally independent whole-of-market brokerage enables them to be completely customer focused and deliver a great client outcome. Being whole of market means that they work with over 120 mortgage lenders and have access to over 10,000 products.
A mortgage is many people’s biggest financial commitment; in the current difficult mortgage market Scott and Jack are here to help you navigate the process and get you the best possible result.
Please click this link to their website to find more information, access to a calculator, blogs and to get in touch with SJ Mortgages.
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