Advice for couple trying to get a mortgage...

piratepixie

Hello Forum,

Just would like some advice really.
I currently have a "fair credit" rating as advised from experian, I basically have £5000 in debt with the Halifax only (an overdraft & credit card) in the past I had a less than perfect credit file and due to this had several defaults on my record, these are all due to drop off next year from July 2011. My partner on the other hand has a "excellent credit" rating and no debt at all. We both have been renting for 7+yrs and now want to purchase our own home, my partner and I intially thought with my bad credit that it would be better for him to get a solo mortgage, having been gifted with £8000 for a deposit from family, he has been turned down by most of the major banks on the high street, been classed either as a risk (solo application) or the fact we have no savings (the fact that we have a deposit doesnt seem to make a difference due to it being gifted to us)My question is, do you think it would be worth us trying for a joint application at this stage ? Maybe the Halifax will be more understanding as I have banked with them 14+yrs and that my "debt" is with them too ?? We dont really want to wait until next July until my defaults have dropped off as we have seen the perfect home now. Please any advice is appreciated.

poppysarah

Sort your debt out. Continue to save.

snowlady07

Hi, I think you'll need to guve us some more information, such as your incomes, if you've any dependants, how much you want to borrow, LTV, that sort of thing.

piratepixie

Earning are £14000pa & £17000pa approx, looking for a mortgage for £80,000 ..we have no dependants.

angrypirate

Your partner on his own is looking for mortgage that is 4.7 times his salary. Right now dont expect to get more than 3.5 times. One question - do you have a joint account? If so, you may find he has picked up your bad credit rating due to the shared account. Quite frankly, if its due to drop off your account in July 2011, id wait until June, start looking at houses with a view to getting a mortgage then. If you look for a mortgage together now they are only going to penalise you with a higher interest rate due to your credit history.

piratepixie

Thanks for your response. No we dont have a joint bank account yet, for that very reason I dont want his credit file to be financially associated with mine, we have kept everything separate. I can understand what you saying about waiting until next year, I just wanted to know if it was at all possible to be considered for a joint application under my circumstances ? Thanks again

angrypirate

Speak to the Halifax (you dont ask you dont get) as they know the history of your credit rating but dont expect an favours. If you get a mortgage then great, but expect a higher interest rate. Also, is this "gifted" deposit coming from a family member? I would suggest that he banks this as to prove he has savings. Having savings also serves as "proof" (along side your credit rating) that you are responsible with money. Having no savings also shows that you live "hand to mouth" - your outgoings and incomings may balance, but there is no backup incase something were to happen.

piratepixie

Thanks for your sound advice. I think we will have to speak to the Halifax and see what they say, also I agree the deposit would look better in the savings account that just a verbal say so, you've been really helpful thank you Angrypirate