Tentative Question?

SkippyB

I hope someone can help me, I am a bit dumb when it comes to mortgages. I am looking for some sound advice on how to proceed..so here goes?

Myself and OH are looking to buy a bigger house and are both on good wages. He currently holds the mortgage on his house which has no equity in it but will sell for enough to cover repayment of his mortgage.
To try and get a bigger house, we will need to apply for a joint mortgage but my OH has a CCJ and his credit rating is stuffed. I have a 100% credit rating ,no debt issues at all and have previously had a mortgage. We have a 20% deposit available.
Would it be more sensible to try and get a mortgage alone, which would mean 4 and hlaf x my wage which is very rare, or would a mortgage company be sympathetic that my OH has yet to rebuild his credit rating after a bad couple of years?

I'm not sure on the way forward or who to talk to?

Robert_Sterling

Do not buy a bigger house if it would be more expensive than the one you have at present. Solve the bad credit reference first which will take some time. I will be interested to see if anyone offers you advice on how to get a loan from a "sub prime" lender as IMHO this would take you from a difficult situation to a more difficult situation.

SkippyB

Robert

Thanks for the reply. The repayments on the house would be less than the ones at present as the mortgage will be for the same amount that he has, due to the large deposit. Also he pays a very high interest rate (around 6%). We have a one bedroom house at the moment and with both of us plus pets...it's getting cramped!!

Personally I earn £25,000 a year with no outgoings at all..(bar car insurance which is paid in one go) and even though he has a poor credit rating my OH has £1200 spare cash each month also...so we have no issue with a large mortgage...it's just which route to take to get the best deal.

Robert_Sterling

"OH has a house with no equity in it but will sell for enough to pay off the mortgage."
Bear in mind Estate Agents Fees for selling the property and that the Estate Agents valuation is often higher than the actual selling price andthat as OH's mortgage rate is 6% there may well be an early redemption penalty and that when you buy a new home there could be stamp duty to pay.
Perhaps I am being too negative. Good luck anyway.


This is not financial advice ... It is just my opinion