There is no legal requirement for a married couple to take out a joint mortgage. In fact, under some circumstances, it may be beneficial for both of you if your husband gets the mortgage in his name alone. The amount your husband can borrow will depend on his savings, equity in other properties and his earnings. Your rights as spouse remain broadly the same as they would if you were named on the mortgage.
Sole mortgage joint ownership
Even though your husband is the sole owner of the home, you still enjoy full occupancy rights as his wife. This means that your husband can’t force you to move out of the property without a court order, sell or rent the home without your permission or take out a loan against the value of the home. Although you may be contributing to the running of the home and perhaps even the mortgage repayments, you are not legally obliged to do this because you are not a joint owner of the property. Your husband is legally responsible for the mortgage repayments and utility bills.
Sole mortgage disadvantages
From your husband’s point of view, there are a number of disadvantages to taking a sole mortgage while married. For example, despite sharing occupancy and having to seek your permission to remortgage or sell the home, he has the full obligation for paying the mortgage.If he encounters financial trouble, he remains solely responsible for the mortgage. However, these disadvantages assume that you and your husband do not have a separate agreement concerning the running of the home and repayment of the mortgage. The disadvantage for both of you is a bank will typically less than if it were lending to two earners. However, if you have savings, either as a couple or individually, you may not need to borrow a lot.
Sole mortgage advantages
Your husband may elect to take out a sole mortgage in order to gain certain advantages. For example, if you have a poor credit history, this might affect the sort of mortgage deals you and your husband can access if you’re applying jointly. Your husband may be able to get a more favourable interest rate if he applies in his name only.
Despite not being the legal owner of the home, you fully inherit the home if your husband dies, even if he hasn’t made a will. However, this means that you may become liable for paying off the remainder of the mortgage if, for example, your husband hasn’t made provisions such as taking out life mortgage life assurance. Under a joint mortgage, in the event of one person dying, the other person named on the mortgage becomes solely and individually liable for making the remaining repayments, provisions notwithstanding.