Credit Building > Can you get a joint mortgage if one spouse is unemployed?

Can you get a joint mortgage if one spouse is unemployed?

Wollit Team2 minute read · Updated 4th July 2024

Yes, it is possible to get a joint mortgage in the UK even if one spouse is unemployed, but it may be a bit harder.

A mortgage application is complicated enough, and having a spouse who’s unemployed can complicate it further. Lenders may be hesitant to approve the loan or offer less favourable terms.

This is how it works:

If one spouse is unemployed, lenders will focus more on the employed partner's income to calculate affordability.
Lenders may ask for a larger deposit.
Lenders may also offer a lower loan amount.

In any case, lenders will look at your total household income to figure out how much you can borrow, so having one partner employed can still be sufficient to qualify for a mortgage.

What if my unemployed spouse also has bad credit?

In this case, it may be better to apply for the mortgage in your name alone, especially if your credit is good. However, keep in mind that this could limit the amount you can borrow.

Some lenders may also insist that both applicants be on the mortgage, even if one is unemployed. This is because they want to ensure both parties are legally responsible for the debt.

Can my unemployed spouse's benefits be considered as income?

It depends. Some lenders may consider some benefits received by your unemployed spouse as income, at least for mortgage purposes.

Some of the usual benefits that can get included are:

Child Benefit;
Disability Living Allowance (DLA);
Personal Independence Payment (PIP);
And Carer's Allowance;

If your spouse receives any of these benefits, it's worth discussing with a mortgage broker to see if they can be included in your application. Just don’t expect all lenders to include them – benefits are meant to provide a minimum quality of life, and as such they can’t really be used for repayment of debt, especially one as substantial as mortgage.

What if my unemployed spouse already has another mortgage?

If your unemployed spouse already has another mortgage, it can complicate things even more. Lenders will need to calculate if your partner can afford paying two mortgages.

One option is to switch your spouse's existing mortgage to a buy-to-let if it's currently residential. This can make the process easier, as affordability is not as important a factor with a buy-to-let mortgage – the mortgage payments are supposed to be covered from the rent earned by the property.

How can I improve my chances of getting a joint mortgage with an unemployed spouse?

To improve your chances of getting a joint mortgage even with an unemployed spouse, there are a couple of things you can do:

Save for a larger deposit. This will reduce the risk for the lenders.
If your spouse is actively searching for a job, provide evidence of their income potential. A job offer letter or a list of interviews can be helpful. You can also wait until your spouse has a job before applying.
Improve your own credit score.

This final one is maybe the most important – and also easier to achieve than getting your spouse back into the working field or saving for a larger deposit.

Luckily, now there are many apps that can help you build and improve credit.

One such app is Wollit. Wollit is an app available both on Android and iOS, and it works by reporting a fixed-fee monthly subscription as a loan repayment to all three credit reference agencies. This helps you build your credit history, the main factor that influences your credit score.

On top of this, Wollit can also report your monthly rent payment to Experian. This can add another line in your credit report that shows lenders that you’re reliable and pay your bills on time, helping you make the most of your rent while you prepare to become a homeowner.