Mortgages with bad credit?

deepintrouble

Whats everyone's opinions on getting mortgages these days?

I currenty have a house with my ex wife that I live in with my new wife (complicated, I know). We're just scraping our way out of negative equity and have started looking at buying somewhere for ourselves.

I have bad credit (on a DMP) but a good income (c£33k) and my wife has a similar salary and approx £14k deposit (so far).

We're currently planning on selling and then renting for a few months while we save for a bigger deposit and work out where we want to live. However, my main quaestion would be whether she is better applying for a mortgage herself (she has good credit), or having me included and risking being declined.

Also if we applied as a couple then the total borrowing would be higher (we can afford it) but would the interest rate be higher?

sorry for so many questions......

deepintrouble

Shameless bump...........

Jacobs_Crackers

Hi,
one thing that pops to mind, is if you apply for a joint mortgage together, (bearing in mind that you have a poor credit history & on a dmp & while your wife has a good history), you will create a financial link (assuming there isn't already one) & therefore unfortunately bring her credit rating down.
I currently am on a dmp but my fiance has a good credit rating & so have chosen to have no joint financial accounts at all for the time being.
Just a thought.
JC.
x

deepintrouble

This was my thought, is the benefit of getting a higher mortgage value worth the decrease in the wifes credit rating?

Bunnyinthelights

I am on a DMP and my husband has an excellent credit rating-we separated all of our finances due financial links etc. The mortgage is in name.

Not sure if that helps...why would you want a big mortgage anyway? Why not get aneasily affordable one and hammer down the debt? (Sorry if I am speaking out of term, if I was making a great wage like that, I would LOVE to get rid of my debt...)

deepintrouble

Its not that I want a "big" mortgage, just a normal one. The size of house we have now is nothing extravagant (3 bed semi). We need to get this size again to fit the family in. If we only use my wifes salary for the calculation then we will struggle to raise enough to do so. The affordability isnt a problem as we are currently paying a morgage of this size anyway. We aren't seeking to increase how much we borrow, just want to get rid of this house and get one similar somewhere else (away from ex wife).

gonzo127

ok just a couple of general thoughts and questions

now other than getting a new house not linked to your old wife is there any reason to move? - could your new wife 'buy out' your old wife?

how much is rent compared to your current mortgage? will it end up costing you more a month to do this or would it actually save you money and allow you to 1 up your DMP payments and/or 2 get more of a deposit?

when thinking of moving have you factored in all the extra expenses or moving and not just head line sale values, but removal vans, HIPS, fees all the little bits which can add quite a few £1000 on to the price?

how long do you have left on your DMP? how long have you been on your DMP? and how much do you owe? - what i am thinking is maybe ask your wife nicely if you can use some of the deposit on your debts to offer some 20-30% full and final settlements

now personally i think the housing market is due another 'good' drop within the next year or 2 as houses are still too expensive for first time buyers which is going to cause a gap 'at the bottom of the ladder' that could cause problems, although this is currently being evened out by the fact of supply and demand i just feel it could be compounded when we get the election over and done with and the financial mess the government is in at the moment gets passed ever so nicely to the tax payer