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Bad Credit Mortgage

Hi,

Long story, so here goes.

My partner, currently has a house with a mortgage outstanding of £127,000. The house is up for sale with offers invited between £140,000 and £150,000. We won't accept anything lower than £140,000. This leaves us with £13,000 for a deposit on a new house.

However, my partner is now self employed, and we cannot prove what she earns, so it will be me only.

We are looking, maximum, for a house at £110,000, minus are deposit of £13,000, so mortgage of £97,000.

I earn £19,000 a year. Now, here is the importnant part, i have bad credit. A previous partner took me for all i had, and it caused me to defualt on a loan, a credit card, and a CCJ was recorded against me. Previously, i have had two mortgages with the Halifax and the Natwest, no problems at all.

My mother in law is willing to be a guarantor, and has amazing, flawless credit.

Will this help, what are our options.

We don't want to stay in the house we are in, as we are having a baby and the mortgage payments are too much for us, we need to downsize, but if i can't get a mortgage, we are in trouble.

Any brokers who can help me?

Andy

Comments

  • _Andy_
    _Andy_ Posts: 11,150 Forumite
    How much were the defaults for and are they satisfied?(same with CCJs)?

    I would doubt it's doable though given the high-ish LTV.
    The guarantor won't affect things at all re the adverse.
  • Andyd1982
    Andyd1982 Posts: 5 Forumite
    Not the news i required, but i need the truth.....

    The defualt was for £5000 and £2000, but these have now been confirmed as closed. The CCJ, although for £4000, has actually been issued as a total of £10,000, but i have now sent the court papers to have this listed, as evidence confirms it could not possibly have been me who took the loan out.

    Does this help?
  • VIGILANT22
    VIGILANT22 Posts: 2,516 Forumite
    At the moment no........
  • betmunch
    betmunch Posts: 3,126 Forumite
    Is your other halves credit file in good order?

    If so, perhaps you could make enquiries along the lines of her taking the mortgage with her mum (your Mother in Law) acting as Guarentor.

    Then, if you stay in her good books, I'm sure she would let you stay in her new house, what with the baby and all!

    Cheers

    PS. did you allows for Estate Agents and Solicitors fees in your £13000?
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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