Two big decisions in one go? You must have a strong determination; getting married and buying a house at the same time bring a massive challenge to your financial capacity. There is so much to think, and without the chances of any mistake as both the decisions are essential. It is vital for your life and future. There will be e a series of dos and don’ts that you need to follow in such situations. You must know 5 essential things before you materialise your home buying with your marriage.
Home buying is the foundation of your loving tomorrow
It would help if you are extra responsible for whatever you do about a home purchase. The need for colossal amount is there, and thus a property loan is unavoidable. The mortgage is one of the most significant financial commitments any individual can bear in their entire life.
You are also about to start a new relation. Both of you should think of buying your own house in the vicinity of their choice. In the current scenario, the low-interest record rates on mortgages in the UK are a great opportunity. You should contact a mortgage broker from the UK to get things quickly processed. Mortgage brokers have access to affordable loan options with exclusive deals. With their expertise, they can help you in the buying process. By understanding your needs and tailoring a deal to suit your circumstances, it is easy to take the proper decision.
When getting married and buying a home, we must take care of 5 critical vital things such as –
- The joint application is possible only after marriage– If you have any plans for a joint application, changing rings is not sufficient to prove that you are married. Proper church marriage and court registration is vital. It is one of the critical things for the couple who are planning to buy a house. Many times couples think that now the ring ceremony part is done they can apply for a mortgage jointly. However, when they get to know the ultimate reality, it makes them feel bad. What is the use of making efforts that are not going in the right direction? It is better to either apply individually or not to apply until marriage. Otherwise, rejection may happen and can make the situations worst.
- Percentage of the house Each party owns:- Marital status doesn’t affect the interest rate. If you misinterpret that buying a home before or after marriage can help you modify the prices, it is just a myth. The lender cannot compromise in the lending rules, and the rate of interest is driven by the best rate issued by the Bank of England. If you have any doubt, you can even confirm it from your lender or broker.
- Payment Responsibility:- Payment responsibility is to be shouldered by both the applicant and co-applicant joint if both are working. Depending upon the ownership of the property liability of payment varies, for example, a title owner can be the owner of the property but not on a deal for the loan. In case of death of the first applicant, responsibility automatically shifts to another member generally can be seen in the case of married customers.
- Buyout Agreement: – Buyout agreement can be executed usually when one partner wants to exit from the liability of paying the loan. It is also in practice the other partner wants sole ownership of the property. For example, the husband owns 70 per cent of the property, and the wife has 30 per cent ownership. If the wife wants to leave her 30% ownership, the husband can buy back that 30 per cent ownership from his wife and will set her free from the ownership. This option is usually explored to keep one person free from the obligations to avail any other financial product for mutual well-being.
- What happens to the property if one of us dies? – In the case of a married couple, the law of succession applies. The liability gets automatically transferred to the other partner. Example – In case, the husband dies, the wife has to pay the pending dues if she is the co-applicant. Joint applicant rule is applicable; if one person dies, the other person has to bear the loss. Indeed, it is a difficult decision, but love is never devoid of the importance of rational decisions. If you care for each other, it is necessary to stay futuristic in your approach and consider this option while making your decision.
The above 5 points should be able to guide you in the right direction of home buying and facilitate a smooth start of your married life. You will be getting two big reasons to be happy, and this is why it is necessary not to miss any important point. It should remain in your attention. Stay cautious, stay romantic and of course, stay committed to your relationship as well as to your financial commitments.
Description – When marriage and home buying occur together, it is necessary to know few things in advance. Information is the best tool to have a great start of something new in life.