If you’re planning a wedding in the near future, there’s a good chance your mind might be preoccupied with thoughts of dress fittings, seating plans and honeymoon destinations – especially now it looks as though larger weddings could be going ahead by the summer.
While it’s arguably a lot more fun to think about placeholders and peonies, it’s worth sparing a thought for how a change of name might affect your finances and more specifically your mortgage. Whether you already own a home or are looking to get on the property ladder, have recently tied the knot or are just about to, here’s what you need to know...
Am I legally required to update my name on my mortgage?
In short, no, but it’s a good idea. The most important organisations to notify of your name change (and those with whom you’re legally required to do so) are the DVLA, the Passport Office and the Electoral Roll. Next on the priority list are companies such as your utility suppliers, insurance providers, savings account providers and lenders, but you’ll need to update your name on your passport and driving license first as this ID will help you change your name with other organisations.
This is the case regardless of whether you’re taking your partner’s name, or they are taking yours. If you both choose to double-barrel your names, then you’ll both need to update your names.
These days it’s very common for couples to own property together before entering into a marriage, so thankfully the process of getting your name changed on your existing mortgage is easy and straightforward.
Alternatively, you may be considering taking your partner’s name for personal use, whilst keeping your maiden name for professional purposes; especially if you’ve built up a reputation within your industry that you don’t wish to compromise. If this is the case, things should still be fairly simple. If you’re applying for a mortgage after your marriage, your mortgage will be in your (new married) legal name, and choosing to use a different name for professional purposes won’t affect things.
Where things start to get slightly more complicated is if you choose not to update your name on your mortgage, but then decide to remortgage later down the line. This can cause problems or delays with your lender, so it’s worth taking a moment to update your name sooner rather than later to avoid the hassle further down the line.
Can I add my husband or wife’s name to my mortgage?
Adding another person to an existing mortgage shouldn’t be a problem, however it isn’t as simple as just updating a name change following your wedding. If one of you currently holds a mortgage on your own but is looking to add the other person, a full assessment of the partner will be needed to add them to the mortgage, as part of a legal process known as a transfer of equity.
This means they will be subjected to the same standard checks, such as income and affordability, as if they were applying for a brand new mortgage. If you or your partner don’t meet your lender’s criteria, your lender is under no obligation to add you to the mortgage, despite your new marital status. If the party being added doesn’t meet this criteria, or is aware that they don’t have a good credit rating, they should think about taking steps to improve this before applying to be included on the mortgage.
You should also be aware that your lender is likely to charge a fee for processing the request.
Getting married but don’t own a property yet?
There’s a reason that updating the Electoral Roll listing with your married name is a priority. That’s because if you attempt to apply for credit using your new name, whether that’s a mortgage or something like a credit card or overdraft, and you haven’t yet informed the lender of your name change, they may be unable to find your credit report, thus stalling your application.
If you’re not quite at the mortgage stage but it’s something you’re both considering, now is the perfect time to get your finances in good shape ahead of an application. Use this time to minimise student debt if you can and make sure you have no unpaid bills in your name. Paying off credit cards (or making an effort to pay off more than the minimum amount each month) can also show a prospective lender that you’re a responsible borrower. Cancelling unused store cards and avoiding payday loans can make a big difference too.
When the big day does arrive, make a point of ordering additional copies of your marriage certificate, as this will need to be used for processing your name changes with various organisations, such as the DVLA, and banks and building societies, especially as these are unlikely to be able to accept photocopies. Having multiple copies will also allow you to make simultaneous changes with various organisations too, rather than having to wait for your documents to be returned each time.
And finally, you may also want to start practising your new signature now. Many married couples find that the first time they go to use their new signature is on something important like signing for a mortgage – and if you get it wrong here, you’re stuck with it, so make sure it’s something you’re comfortable with.
So in conclusion, it’s not a legal requirement to tell your mortgage provider that you’ve tied the knot and changed your name, but it is a good idea to do so. At some point in the future, should you decide to buy a property, remortgage, or move house, it’ll be one less thing to think about and one less barrier to owning your dream home.
Joanne Leek is Digital and Campaigns Manager at Ipswich Building Society, a nationwide mortgage lender that assesses each mortgage application by a mortgage expert, not an algorithm.