Mortgage advice - a million questions....

holbrook99

ok ive tried for a mortgage in my name and it was declined because i have a 2 year old defualt. Ive tried in my partners name and it was declined, i assume because she has late payments showing on a "settled" account.

so what options do i have left?...is there still such a thing as parents going as garauntors? as my father is not named on any mortgage and is near on a millionaire can he go gaurantor for me?

Or my dad can just get the mortgage in his name and add me to it and take himself off after a few months, BUT will he be able to get a 30 year mortgage at his age (50) which i what i need to be able to afford the monthly payments?

thanks in advance for any help.

Paul

Idiophreak

You may well be able to get your dad to act as a guarantor - probably best to seek proper advice from an IFA tho

Robert_Sterling_3

holbrook99 wrote: »

Or my dad can just get the mortgage in his name and add me to it and take himself off after a few months

OK Your dad might get the mortgage and have you named on it but he can't take himself off after a few months.

holbrook99

can somebody explain how a gaurantor works exactly, and how i go about applying for a mortgage using my dad as a garauntor as he is hapy to be one, but mist mortgage applications are done online, and i cant see where you put garauntor?

herbiesjp

The fact you want to add your father as a guarantor does not get rid of your bad credit history - you will still get declined, and then also create a financial association to your father, and affect his credit score.

A guarantor mortgage is normally used to bolster a shortcoming in income, it cannot improve credit history.

What is the purchase price? What deposit do you have?

holbrook99

herbiesjp wrote: »

The fact you want to add your father as a guarantor does not get rid of your bad credit history - you will still get declined, and then also create a financial association to your father, and affect his credit score.

A guarantor mortgage is normally used to bolster a shortcoming in income, it cannot improve credit history.

What is the purchase price? What deposit do you have?

The house is £122,000 and i have a deposit of 20% provided by my father.

herbiesjp

What is your income?

You may be able to get a deal in your name, however you will not get high street rates initially.

However it will mean that your defaults will get older, and have less impact further down the line when you come to re-mortgage

You would need a broker to help with the scenario, to check that the adverse credit you have still fits the criteria of the lenders in question.

maninthestreet

Your dad is a millionaire, get him to lend you the money to buy the house.

Conrad

You probably need 25% deposit, and I would expect the rate to be circa 5% from the info you impart.

Beacon homeloans is the cheapest lenders for adverse credit as far as I know, but they are still fussy and will still want to be sure the mortgage is suitable and affordable.

A decent broker is throrough in thier approach and might charge a samll fee such as £99 up front to ensure they aren't wasting thier time on a wild goose chase.

A 'free' broker might be just as thorough, but they tend to be keen on selling you insurance, but you might find it a lot cheaper online.

Best of luck.

herbiesjp

Conrad wrote: »

A 'free' broker might be just as thorough, but they tend to be keen on selling you insurance, but you might find it a lot cheaper online.

.

Keen on selling insurance - not always
Making people aware of their protection needs - should be always

Find cheaper online - not always
People may find cheaper online, but do people understand what they are buying? - a prime example is a post on here the other day where someone was confusing CI and MPPI and discounting their need for CI based on their understanding of the product (which was wrong)

And as you know Conrad, the cheaper CI policies are not necesarily the ones that offer the best cover.

holbrook99

maninthestreet wrote: »

Your dad is a millionaire, get him to lend you the money to buy the house.

when i say he is a millionaire, that is in assests he certainly hasnt got £1m in the bank...and he is paying my deposit which is more than generous enough.