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Mortgage Advice needed urgently

tracey2009
tracey2009 Posts: 24 Forumite
in Mortgages & endowments
Hi There

I would be so grateful for any advice out there as I am at the end of my tether....

Basically, my boyfriend and I want to buy a house. I have a really bad credit rating as when I was younger I got into trouble with store cards. 2 years ago I began a debt management plan and I have been making a large monthly payment ever since. I have never missed a payment or been late with a payment. I have 6 months left on the plan then I am debt free.

My boyfriend knows about this.

So, we tried to get a mortgage in his name only and he can only borrow £100,000, we need £140,000. Can my income count towards the decision or not as it is a single application in his name only? I earn £24,000/annum. If we applied for a joint mortgage would we get turned down because of me?

I think I already know the answer but please help :-(

Thank you in advance x
«1

Comments

  • Auzelia
    Auzelia Posts: 806 Forumite
    From reading on this forum I dont think your income can be taken into consideration as you are not named on the application.
    and the bank will most likely score him on affordability with regards to paying all his bills (gas, electric etc) from his wage alone.
  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    Have you got an up to date copy of your credit file?

    What is your income?
    What is his income?
    What is the purchase price?
    What deposit do you have?

    Does your BF have any other debts?
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • tracey2009
    tracey2009 Posts: 24 Forumite
    herbiesjp wrote: »
    Have you got an up to date copy of your credit file?

    What is your income?
    What is his income?
    What is the purchase price?
    What deposit do you have?

    Does your BF have any other debts?


    Hi thanks for your response. I don't have an up to date copy of my credit file - I am too scared to look. I can't even get a credit card so I know it is really bad!

    My salary is £24,000/annum
    My boyfriends salary is £23,000 + he receives rent of approx £8,000/annum.
    The purchase price is £169.995 and we have £25,000 deposit (as we have been saving like mad)
    My boyfriend has 1 debt which is a loan of £150/month.
  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    Don't be scared, as you wont get anywhere if you do not find out.

    Without knowing what is on your credit file, no one will be able to tell you what is possible.

    However, if you do have adverse credit, it will make things harder, especially as you are looking at over 85% borrowing
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • tracey2009
    tracey2009 Posts: 24 Forumite
    Thanks for the advice. I guess I had better get my credit file. I know that this will make bad reading. I will have the Debt Management thing on there and probably missed payments from the past!

    I notice that you are a mortgage adviser. If my boyfriend applies for the mortgage in his name only, will my income not count for anything as somebody who will be sharing the bills and paying half the mortgage?

    Thanks for your help.
  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    Your income will not count, in terms of getting the mortgage agreed, as you have to be named on the mortgage for this to happen.

    In reality, you income would be used.

    However your credit history looks like it will cause problems

    Have you gone via a broker, who may come up with other ideas/suggestions?
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • tracey2009
    tracey2009 Posts: 24 Forumite
    Haven't been in touch with anybody yet as I know that I will be refused point blank. We were hoping to do it in my boyfriends name only, but we cannot borrow enough this way. What a total nightmare and all because of stupid mistakes made earlier on in life!

    I really appreciate all the advice. Thankyou
  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    Like I said, a broker may be able to think outside of the box for you and come up with ideas for buying the property (as long as it remains affordable)

    It's worth a go :)
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • tracey2009
    tracey2009 Posts: 24 Forumite
    Thankyou.

    I know I am about to sound really thick - but what is the difference between a mortgage broker and say getting a mortgage from the bank? Is it more risky/more expensive?
  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    A true whole of market mortgage broker will be able to look at all lenders.

    A bank will only be able to offer their own products.

    So a true whole of market broker should have more of a chance of getting something agreed for you.

    It is not more risky

    More expensive -depends on whether you find a fee free adviser, or not. Also depends on the deals they can find for you, but if they are whole of market then they should be able to find any deal for you (so will include lower rates with higher fees as well)
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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