Getting a mortgage - defaults on credit file

masjntt1977

Hi

I ve recently been looking at getting a mortgage and my friend would also like to get her foot on the ladder somehow but isnt sure if she'll qualify for a mortgage.

Does anyone know if its possible for someone with defaults on their credit file to get a mortgage??

My friend wants to go thirds on a property with her parents, they have existing property to sell which would cover their share but she would need to raise about 55k for her share.

She is unable to work through sickness and disability and most likely wont be able to in the future either, she get various benefits etc and has an annual income of approx £13500.

She has four defaults on her file which will all have "dropped off" by Aug 09, two come off end of Dec 08, one mid jan 09 and the other aug 09.

She has no other credit / debt issues since 2002. She now has a mobile phone and credit card showing on her credit file both stating that thaey have been run "satisfactory" over the last 36 months. She doesnt have a current account though - was declined last week for one with A&L hence her rechecking her credit file.

Being disabled its easier for her to get quotes and make enquires from home {phone or net} but given her circumstances could she get a mortgage???

herbiesjp

If three people are buying the property then 3 people need to be on the deeds and on the mortgage

So, in theory the answer could be yes, as they would take into account parents income and not necessarily hers.

However her credit history could impact on the rates available to them as a whole and a financial association would be made between the 3 of them linking them to the adverse history.

However if she would in effect be the sole payee of the mortgage, can she afford it on her sole income? What about other monthly expenses?

masjntt1977

Thanks for the reply.

I think I ve understood it correctly, the parents wouldnt technically need a mortgage as their part would be a "cash" transaction but from what you have said then all 3 would need to be on the mortgage, is that correct??

Her only expenditure is about £75 a month which she spends on her credit card, and the remainder pretty much goes in rent and rates for where she lives now.

Her parents have said if it would easier for her to get a mortgage then they would sign the current property over to her for her to sell and then use as a large deposit, {there isnt a mortgage on this property - has been paid}

Would that be a better option or maybe for the parents to just get a mortgage to cover the shortfall and then for her to somehow pay them back?

Sooo complicated lol

herbiesjp

They could get a mortgage in their name - but then she make the payments to clear the debt

The age of the parents could affect which lenders would offer a mortgage and how long for though - however not having bad credit history would make it easier to get the better rates, and therefore minimise the monthly mortgage cost

masjntt1977

herbiesjp - thank you for your help, think the best option is for her friends parents to try and get a mortgage and for her to repay it.

Thanks again, appreciate your time

robin_banks

I'd hang on till Aug 09