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sophieq

Joint mortgage - one partner has bad credit

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Hi all,

 

A bit different to some of the really sad stories on here, but hopefully someone can offer a bit of advice.

 

The other half and I are currently talking about buying a place together; the trouble is that while he has immaculate credit, mine is beyond awful (two defaults, numerous missed payments, lots of debt etc.)

 

We both currently own our own places, if sold his would make enough for a good-sized deposit on a house and I would about break-even. We both have mortgages with Natwest.

 

Could anyone give any quick advice on the best course of action for us? Could we get a joint mortgage? Could the credit check be done just on him? Would Natwest automatically give us one as we're both with them already?

 

Many thanks in advance for any help,

 

Sophie.

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Any joint mortgage application no matter who the lender is would (or at least should) involve credit checks on you both, I seriously doubt your credit record would escape the notice of a proposed lender/underwriter

 

In this current climate of nervous banks/lender the sub prime mortgages have pretty much vanished off the high st with only the major lenders lending so to speak and even they appear twitchy when handing out the dosh. I guess if the deposit is large it may help but with uncertainty in the housing market still playing out probably not.

 

You could get a self cert mortgage but there are proposals underway to ban these, so get in quick if this is your chosen route.

 

Take a look here

FSA tightens mortgage lending rules | Business | guardian.co.uk

 

and then here

FSA's new mortgage rules: what the experts say | Business | guardian.co.uk

 

 

In answer to would Natwest give you a mortgage based on the fact that you both currently have seperate mortgages with them? In my opinion I doubt it, presumably you got your mortgage before laying waste to your credit file by way of "two defaults, numerous missed payments, lots of debt etc" they'll still credit check you etc....

 

If I were you I'd go see an independent financial advisor, typically one that is regulated by the FSA, they (er not the FSA) may be able to source something as most of them are 'friendly' with the decision makers and know how to answer the questions etc...but even then there is no guarantee they'll get you anything.


I reside in Dawlish Warren but am not a rabbit.

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sophieq

 

This sounds like a longer term plan, sell two properties and buy a third. Tricky in the current market, without the complications of finding a lender....have you spoken to NatWest? They are the people that know you best.

In the meantime have a look at your credit record, can it be tidied up a bit? Plenty of information on this site about this, a nice project for the winter .......


Regards

 

on*the*case

 

Never Give Up! Never Surrender!

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Hi Sophieq. Ex Independent Mortgage Broker here.

As your partner has good credit, have you considered the new mortgage in his name only? This would depend on his income & expenditure alone being sufficient to cover the lender's affordability calculation. You can check this by going on Nat West's website, or any lender's site for that matter, and linking to affordability calculator. They would not then need to do a check on yourself and you would only be included as an additional occupier of the property with you being over 17 years old. This gives the lender protection if in the future there are any repossession issues. Your solicitor would explain this as to the legal issue.

Debt T's opinion of seeing an independent is good as if your partner has no Early Redemption Charges on his mortgage the independent can shop around for the best deals on the current market.

Self certification is not a real option as the lender will still credit check you both. Self cert does not need proof of income, but these mortgages are far & few between, have high rates and low maximum loan to property value and these lenders reserve the right that they can still ask for proof!! Too many previous fraudulent applications have well & truly upset this applecart.

If the above route is an option you and your partner should check the legal issues with your solicitor as the ownership of the property and the mortgage would be in your partner's name only and you would need to check how you stand in the event you seperate in the future.

If you cannot proceed in the single name due to affordability IMO I would make an appt to see Nat West and put your cards on the table. If they can't/won't help the final route is the sub prime market through an Independent Broker but their interest rates are currently high and low maximum loan to valuation rates with high fees.

Hope above is helpful.

S55

 

THE ABOVE SHOULD NOT BE CONSTRUED AS ADVICE AND/OR RECOMMENDATION AND IS ONLY MY OPINION.

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That's brilliant, thanks for all the advice guys. I think the best thing is for me to try and tidy up my credit, but with two defaults, each with 4 years left to run I dont think this will be easy.

 

Sophie.

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