Mortgage with Debt but Good Credit Score

sarahdebtbuster

Hello,

Just a bit of background. I have posted a few times over the past couple of days under a couple of different names. The reason was I was hiding debt from my partner and wanted to get a bit of information without him knowing. I came clean yesterday (you can see the thread on the DFW forum) and he knows everything and now I can be honest on here to in order to get the information I need. The relief is immense and I can now ask the question I needed to in the first place. I also wanted to say thank you to those who helped me with coming clean. The advice helped so much! And I apologise to those who tried to help me when I wasn't telling the whole truth.

Ok, here goes.

We currently have a joint mortgage with Nationwide. We are looking at buying a new house. My partner can cover the payments with his salary so that seems okay. On my side I am self-employed, but only have 1 year's worth of accounts. I also owe 24K across a loan and 2 credit cards which my partner now knows about. I have never missed a payment and my credit score is excellent. I am working hard at reducing this debt.

Is there any way we will be able to get a mortgage in joint names but without my salary being included? Nationwide won't assist, they can only lend us £175,000 when we need £225, 000 80% LTV.

I am going to call some mortgage brokers tomorrow, but wanted to see what the general feeling was on here first.

Many thanks in advance.

jockosjungle

Call yourself what you like, I remember your situation. Our advice no doubt remains the same

R

sarahdebtbuster

I have just had the worst weekend of my life. That didn't really help. I'll speak to a broker tomorrow.

beecher2

I think you should concentrate on getting rid of your existing debt before taking on more. Now that your husband knows about the debt, aren't you able to use his salary to throw more at it? Post a Statement of Affairs on Debt Free Wannabee and see how much of your household income can be used at getting the debt down to a manageable size. I take it your husband is on board with helping you pay and it isn't a case of 'it's your debt, you pay it'?

I have no idea who you were previously, so don't know if this is what you've already been advised on here.

FraudBuster

The DFW Board will give you lots of <<<<<hugs>>>>.

opinions4u

sarahdebtbuster wrote: »

I have just had the worst weekend of my life. That didn't really help. I'll speak to a broker tomorrow.

A broker has an interest in ensuring that you get a mortgage. That way they get paid.

But sit back and consider your plan to move.

On the one hand, you are trying to reduce your £25k debts.

On the other you want to borrow, presumably, more than you owe on your current mortgage.

There seems to be a contradiction there. Debt is debt. Do you want more of it or less of it?

jockosjungle

sarahdebtbuster wrote: »

I have just had the worst weekend of my life. That didn't really help. I'll speak to a broker tomorrow.

Sorry my comment referred to that you've already posted this story and asked for help, was unsure why you feel you'll get a different response with a new username?

I assume from your post that your partner has no idea about your debts.

Why exactly are you moving anyway? Is it a downgrade, wanting to get out of renting, just moving, need a bigger place?

These questions we could do with answers for, is the move a necessity?

Where are you looking to buy?

A mortgage adviser isn't there to advise you on whether a mortgage is the right thing for you, they will advise you on how to get a mortgage and what might be the best deal based on what deals they have access to.

What sort of wages are we talking about for your partner? Is he mortgaging himself to the maximum?

The Post Office were happy to ignore my wifes income but I only wanted a cheap house and my wages easily covered the mortgage multiplyer (slightly less than 2 times my salary)

sarahdebtbuster

It's okay, it's just been a very stressful weekend. I told my OH about my debts yesterday and as you can imagine he is angry, confused, and annoyed I had left it so long. The feelings of guilt on my part are huge and I wanted to see if I could salvage anything from some advice on whether we could still get a mortgage.

It's okay though, have got the number of a broker and am going to speak to them tomorrow. Thanks for your message.

dimbo61

Getting back to the property you are looking at and the mortgage you are also trying to get !
If you want to borrow £225K and thats a 80%LTV then I take it that you are looking at a property for £275K with your £50K deposit.
Now thats bad news in itself because you dont under any circumstances pay more than £250K for the property.
3% stamp duty for any property over £250,000 and thats £75000 instamp duty to the government and when you come to sell !!! Guess what any buyer will offer you £250K max.
What I am saying is DO NOT PAY more than £250K for your next property its bad enough giving £2500 in stamp duty ( tax ) to the government and if you have £50K deposit then you need a £200K mortgage

geoffky

rebuild trust before trying to move...it might be the wrong move...

Thrugelmir

Now that you've broken cover. The worst is over. It takes courage to do what you've done. Don't throw away this opportunity by over extending your household finances.

Tackle your debts first. Put the house move on hold. Sit down with your husband and be pragmatic. Little point in paying high interest on credit cards with earning little on money in savings accounts.

We'll no doubt still be dishing out "advice" when you look for a mortgage again in the future. So never think that you are alone.

So keep smiling, as there's nothing more to worry about now.