Joint Mortgage, Good Deposit, Bad Credit

mrjam

Hi.

Myself and my partner are looking to apply for a mortgage in the next few weeks to a value of around £70,000 - we have a £12,000 deposit available but the problem is, one of us has very good credit, whilst the other has very bad credit from when she was younger.

Can you tell me wether there is any point whatsoever in applying, her credit does not even allow her to open a current account, she only has a basic bank account.

Please do not say not to apply with her and go alone, i just wondered if we would still be accepted but at a higher interest rate or something like that.

Thank you
Jam

benjo

You have a 17% deposit (approximately) does that 12k include your solicitors fees, search fees, house moving costs? if it does, then your deposit could be significantly less. The minimum deposit required by 'most' lenders these days seems to be 10 - 15%. While 12k is alot of money to save and well done for that, sadly it doesnt put you in the 'good deposit' bracket of lending 25 - 40% deposit.

Im guessing that before any of the mortgage advisor people here can answer you, you will need to provide some more details for them.

Earnings for you and your partner.
Is your employment stable/self employed?
How bad is the credit? defaults? ccj? how many, how much, how long ago etc.

Conrad

On your advice that her credit is very bad, the only potential option is likely to be a 25% deposit. Rates could be anything from 5%-13% depending on the dates and types of bad credit.

An old default alone should mean rates of 5-6%, whereas a recent ccj could mean 13%, so you need to be very specific and accurate if you want any meaningful pointers. Dates, amounts and types of bad credit registered.