so stressed...will we get turned down?

samwise09

Hi

Me, my partner and my sister are looking to get a 3-way mortgage next week on a house of around £100,000, we have £20,000 as a deposit and the mortgage we are looking to get is alot lower than what we can afford and what the bank would lend us.
I myself have a decent credit history with only a student loan left to pay, i have around £10,000 in my name sat in 2 Isas and have never missed a payment on anything. My sister has no debt what so ever and also has 2 Isa's and a decent salary.
However my only worry is my boyfriend who has in the past missed payments on credit cards. In the last year he sorted everything out and has not missed any payments. He had one credit card loan which he set up as a court order so the money could go out of his wages, today he paid the existing £785 that was left to pay so it is all clear. The other credit card loan he has he has been paying £200 off a month upto yesterday where he had around £2,000 left to pay. Today he paid £1,300, off that balance so the rest will be paid off within the next 4 months. He had owned numerous cars on finance and has never missed a single payment on them and has a decent salary of £21,000. over the weekend we are looking to set up a join savings account to strength out ratings also.
Between the 3 off us getting a mortgage can we still get declined? we are looking to sort it out next week with a leading mortgage broker. He told us something along the lines of " if what you owe will be gone in under 12 months its not classed as a liability"? is this right? or is this only in the case with car finance?

Id appreciate any advise as i am so stressed about the thought of getting declined.

many thanks

Conrad

Impossible post to answer meaningfuly, and you would get a better response if you use bullet points.

Cannon_Fodder

By court order do you mean CCJ ? Its not just about what is owed now, but reliability. That doesn't bode well.

3-way purchases are fraught with difficulty. 1 of the 3 will always want something different from the other 2...

Sisters stick together, the boyfriend gets hacked off, damaging the relationship.
Couple sticks together, damages sibling relationship.

When the couple want to marry, does the sister get kicked out, or do you move to a new "marital home" and she get left behind not able to afford to make the mortgage payments...?

Either;

Buy as a couple. Let the sister lodge.
Or sisters buy as his credit is a bit shaky, house rules allow "visitors".

imo.

samwise09

Sorry if my post was a bit hard to understand, its prob because i dont understand much myself.

All i know is my OH has 2 credit card debts left to pay-

one of those was with Egg - which is paid off by a court order stated on his wage slip of £100 a month. Next week he will be paying the remainder of £700 left to pay. im not sure if this is/was a ccj?

His other credit card is with Barclays. Yesterday he paid off £1000 but still has £1000 left to pay- which we are hoping to find and pay off before we applie for the mortgage.

I know in the last 8-12 months he set up everything up on direct debit and has sorted his financies out, however before this i know he missed payments.

and as i said he has a car on finance which he has always paid/

I hope this makes a little more sense.

I understand what you mean Cannon Fodder with the whole sister thing. but what we are all doing is really a buisness deal. we are looking to buy a cheap property, do it up (as my dad is a decorator and has connections). Then maybe live there for a year, sell and split the profits. I know it will be complicated but it the one way we see that we can all get on the property ladder, expecially as my sister is single.

I guess i was also hoping that my sister will strengthen our application?

id appreciate any futher advise

many thanks

Mrs_Bumble

Your partners credit history,

He had an order on his salary to deduct payment to a debt - that hints to more than missed payments as a creditor doesn't go to that trouble lightly

The CC debt he was paying at £200 a month was that by arrangement or order or just what he decided to pay?

The fact that you say that he hasn't missed any payment in the last year doesn't really give a try reflection on his credit profile, has he had arrangements in place in this time(apart from the one attached to his wages)

The joint savings account won't strengthen your credit rating and will just link you to him financially and with his credit history I wouldn't personally be overly willing to do that myself as it could harm yours.

Have you seen a copy of his credit report?

Which leading mortgage broker, do they know about the above?

Without seeing your boyfriends credit report and purely basing it on what you have said above, he doesn't sound very reliable with money and the credit history will impact on you if he is included on the application.

Why are you looking to do this as a 3 way transaction?

I agree with the above comments.

What are the long term plans for the house?

Its quite hard to say really but if you and your sister were originally entering this as something to do together and the boyfriend has come along I would be inclined to still purchase with my sister.

Your boyfriends credit history and profile doesn't really look that brilliant and I think if I was in your shoes I would want to be assured that his habits had improved and if the relationship is long term and you can see marriage etc what are the benefits of buying as a threesome? Wouldn't you and your boyfriend be better to wait and buy together at a later date when his credit history had improved and you had collected a larger deposit?

Mrs_Bumble

I posted at the same time as you!

So you are looking to do this as a business deal and you have a property in mind? What sort of condition is the property in currently? As if major works are needed the lender can impose a retention of funds released until the work is carried out etc, do you have them money in the background to subsidise this?

What if property prices don't increase in the meantime?

I really think that you need to see a copy of your boyfriends credit file.

Cannon_Fodder

Splitting the negative equity 3 ways is not the way to get on the housing ladder...!

If its a "family" business deal, then I'd still go with "sisters buy". You can mollify your boyfriend by saying the credit problems make the deal a bit less profitable.

Especially as it sounds like the sisters are providing the deposit. Sorting out who gets what proportion of any profits, where 1 put £10k in, 1 put £10k in, and 1 put 1/3rd of monthly mortgages payments in, is a recipe for arguments.

If he is planning to stay around, he'll be happy that you aim to take the profit with you to the next place, which can be joint...

Mrs_Bumble

I agree with Cannon Fodder.

samwise09

Thanks for all your posts.

The plan oringinally was for just me and my OH to get a house together. I have been with my boyfriend for 3 years and have evry trust in him although we both know he was stupid in the past.
He has £10,000 he is getting as a cash gift off his dad to put towards deposit. me and my sis have 7.5 each which will be a gift of my dad.

The property we are looking to buy is £99,950 with morgage re-payemtns of around £600 which we can all afford, it also has massive potential as houses on the same street with same lay out are on sale for £145,000.
After our 15% deposit we have around £5,000 to do up the house, but all our parents will chip in also.

The mortgage broker know of OH debts and has told him its best to clear it and that aslong as his car has 12 months or less of payments its not classed as a liability.

my boyfriend understands that although egg were demanding money he addressed the issue by filling out a form and getting them to take the money off his wages. he orginally said they he wanted to pay £200 a month but they only took £100??

with the barcalays card- he was paying £50 but they rang up to see if he could afford more so he upp'd it to £200.

We are both hoping to have all his cc paid off before we applie for the mortgage?

And today we will together look at his credit file.

Through my reserch once the debt is cleared banks still lend the money for mortgages. I am just hoping that with mine and my sister good credit our mortgage is still possible, but obviously is not im sure my OH would support me either way.

I hope i answered everything and it all makes sense

xx

Mrs_Bumble

You OH has arrangements to pay on his credit file and although the broker knows of the credit outstanding it is extremely important to know exactly what is showing in respect of adverse credit history which your OH will have and this is regardless of whether he has cleared them or not. This can seriously impact on any likelihood of a mortgage being offered.

It is also important to consider that if the lender considers that work needs to be done on the property then a retention could be a possibility.

Does your dad and your sister know about your OH credit history as they all should be aware before getting into any business relationship.

Especially your sister as she will be linked financially with you both by virtue of the joint mortgage.

samwise09

they both know he has debt outstanding, but i must stress my boyfriend now is very good with money and would never jeperodise me and my sister.

its a shame in the past he was not as good, but we cant do much about that.

thanks for all your help, ill take alot of it on board

I think i will arange another meeting with mortgage broker to discuss our situation futher and see if he thinks maybe me and my sis should do it alone.

many thanks