Ex- Credit Analyst - Throw your Credit & Underwriting Q's at me.

Mike_St_Helens

Snaggles wrote:

Hi KerryGold!

Just to follow on from Mike's reply, you can look at taking your Mum off the mortgage and the deeds, however this would be classed as an Equity Buy Out (if you wanted to put your husband on the deeds at the same time then he can simultaneously do an Equity Buy In). A solicitor would deal with this and there may be significant costs involved, as it is basically treated as a sale/purchase, even if no money is actually changing hands. As I understand it, stamp duty may be payable in some circumstances too, so it would be worth enquiring with a few solicitors to see what costs would be involved.

As far as whether or not the bank would agree to you taking on the mortgage in your sole name, they will most likely assess this as if you were taking on a completely new mortgage with them (which in effect you would be) - so it would depend on what their normal criteria was. The fact that you work through an agency might be a slight stumbling block, although as you have been doing this for 18 months, they might consider this sufficient track record (particularly if you were in a similar line of work prior to starting with the agency). Whether you want to add your husband on to the mortgage/deeds is ultimately up to you, but if he has an income, then obviously they can take your joint income into account - although they will then also take into account any debts/outgoings he has, and also his credit rating.

The fact that you can prove you have paid the mortgage yourself may well help and is definitely worth mentioning to them (they wouldn't automatically agree it because of this, but if they are assessing judgementally, anything that might swing the decision in your favour is worth telling them about).

With regard to the equity in the property, although this is another thing in your favour, banks tend to take the view that 'Equity doesn't make a bad proposition good' - so whilst they will think it's a good thing, this again wont automatically mean it would be agreed, as whilst their security would be protected if they did have to repossess, at the end of the day, they dont want to repossess properties, they want you to pay them back, as slowly as possible, with lots of lovely interest !

There is also the option of taking your Mum either just off the deeds (but remaining on the mortgage) or just off the mortgage (but remaining on the deeds), but with either of these options, you would then need to sign an indirect legal charge (sometimes called an A2 charge), and would need independant legal advice (so would again pay solicitors fees). It would probably be worth having a chat to a solicitor to go over your options, and look at the best ways to protect both yourself and your Mum, and keep costs to a minimum.

Hope this helps! (I suspect it just confuses the issue more - sorry )

Snaggles xx

Your new vocation should be in convayancing Snaggles !!

Boy, its been a busy day here.....

Mikey

Lady_S

Okay, I have loads of questions, so I won't be offended if you don't answer them all.

firstly, my OH recently applied for his credit rating and he found he is still financially linked to his ex partner. There was something on there about a joint account with Halifax which he has no knowledge of. Once his divorce is final how can we get her off his record. We are only concerned as we know she is credit happy and will run up debts and not pay them.

Now for me personally. I have a default on my credit record from 4 years ago. Since then I have been a good girl and paid everything although my credit level to income is almost 100%. I am paying this off though. At the moment I have a 0%CC with my bank, what would my likelihood be of getting another 0% deal when this closes in about 4 months time.

sazzler

Hi there
I have a question too (wow you guys been busy lately)
first of all i'd like to say this website is amazing, in the two days since i found it iv learnt so much and now i dont feel so scared about being a debt free wannabe!
My question is, im looking at applying for a car loan and possibly a mortgage in the next 6 months, iv recently had a default for £200 for an overdraft that im looking to arrange to pay back (or maybe increase a loan i have to cover this)
i also have 2 credit cards, one for £200 and another for £1350 but is over limit by £350.
Im thinking that as a loan for hire purchase or mortgage is secured they will be less likely to reject me? is this right?
I dont wanna go to a main car dealer for finance only to be rejected, maybe its better to go to a lender with a higher rate just so i get accepted?

does that make sense?

Sazzler

littlestar1981

Here's one for you on credit scoring:

I sent off to my local council to get my address updated on the electoral roll. They sent me a letter back confirming it had been updated... but somewhere in between decided I couldn't spell my own first name so changed it :mad: I have told them to amend it but it still shows up with the wrong spelling on my experian credit file.

It might sound a silly question, but would my first name being spelt wrong (on electoral roll only) affect my ability to get credit?

Oh, and while I'm at it, once my joint account with my ex is closed is his name removed completely from my credit file?

moneywaster_2

hiya
im in the process of clearing all my debt!! in my student days i was late a few times paying my credit card but never missed a pyment- i have now a poor credit rating-will this improve cos im thinking about getting a morgatge soon with my bf!

Mike_St_Helens

Hi you guys uo there... I havent forgotten, been working. Will promise to answer later.

Mike

trevor_john

Mike I spoke to Barclaycard legal dept and they assure me they will now update my file removing the old info from my file....we will see lol !!!

Mike_St_Helens

Well Done !

Mike_St_Helens

Lady_S wrote:

Okay, I have loads of questions, so I won't be offended if you don't answer them all.

firstly, my OH recently applied for his credit rating and he found he is still financially linked to his ex partner. There was something on there about a joint account with Halifax which he has no knowledge of. Once his divorce is final how can we get her off his record. We are only concerned as we know she is credit happy and will run up debts and not pay them.

Now for me personally. I have a default on my credit record from 4 years ago. Since then I have been a good girl and paid everything although my credit level to income is almost 100%. I am paying this off though. At the moment I have a 0%CC with my bank, what would my likelihood be of getting another 0% deal when this closes in about 4 months time.

Hi there, right, this may be difficult. If the link is DEFF due to this account, then it must be closed, then the necessary 6 year 'drop of the file' rule would apply before the link is dissolved. I may be wrong here mind though as this is quite a new area, .. What I would do te certainly call the Credit referance agency and tell them what you have said to me. They will be unbiased and certainly help you.

Next, your 'debt to income ratio' at 100% is really your boiling point, Personally you should not increase this debt as far as underwriting is concerneed, however, in todays lending it is def not uncommon. Your Default will fall off in just under 2 yers so even more 'prime' lenders will be happy to lend to you... you will have more choices and more lenders will lend to you.

It may be that the lender you are with does not report to credit ref agencies and lenders will not be aware thay you even have this debt.... Have you recently applied for anything, what is your income/debt level and who is the 0% with ?

Mike

Mike_St_Helens

sazzler wrote:

Hi there
I have a question too (wow you guys been busy lately)
first of all i'd like to say this website is amazing, in the two days since i found it iv learnt so much and now i dont feel so scared about being a debt free wannabe!
My question is, im looking at applying for a car loan and possibly a mortgage in the next 6 months, iv recently had a default for £200 for an overdraft that im looking to arrange to pay back (or maybe increase a loan i have to cover this)
i also have 2 credit cards, one for £200 and another for £1350 but is over limit by £350.
Im thinking that as a loan for hire purchase or mortgage is secured they will be less likely to reject me? is this right?
I dont wanna go to a main car dealer for finance only to be rejected, maybe its better to go to a lender with a higher rate just so i get accepted?

does that make sense?

Sazzler

Hmm... Grey area really. You 'should' have no probs with either as they are both secured, however you will more than likley pay a higher rate as some of the high street lenders may not approve a dflt and overlimit. It depends if the lender you have issues with reports to an agency. However if you are after HP, which can be expensive, dealers will nearly always get you finance... you might pay through the hoop but...

Mortgage wise, I always advise going to a broker. https://www.moneysupermarket.com is VV good for comparison in normal and some distorted credit deals..

Mike