Obtaining a Mortgage with a Partner in Debt

lottie32

Hi

I am currently in a relationship where I have a mortgage on my flat and my partner is not on the mortgage at all. In the future, I would very much like us (and he would too!) to eventually buy a flat/house together but the issue is he has debt from before I met him - lets say just over £20K. I do not have any debt at all and have a clean credit reference file but we are in the process of deciding what to do about his debt and the impact this will have on us getting a mortgage together in the future.

What we do about the debt is really a separate issue but I know that bankruptcy will have a huge effect and we are trying to avoid this.

Has anyone else been in this situation and can you advise how we can best move forward to getting a mortgage in the future - ie best lenders, where to look, what to avoid and if you think this will be possible at all.

Thank you very much!!:rotfl:

herbiesjp

Is he having problems with the debt?
Does he have adverse credit registered against him?

Or is it simply the level of debt you are concerned about, and how much you could in effect borrow jointly?

S1rEean

Hi Lottie32

My partner and I are in the same boat, Angela has excellent credit (must be a female thing) where as myself I am currently paying monthly payments to 90% of my debters and then when we have extra money, I do as these forums suggested, make a deal and pay them off, anyways we have just got a mortage for 250k self-cert with 10% down from a high street lender, we pay 6%-ish about £1000pcm, it was a £150ish a month more, but like you we wanted it to be joint and can afford it, i have about 4 ccj's from yrs ago and lots of small unpaid things. we got it through a personal friend who is a mortage/money adviser, i'll hunt out the names for you of the companies who were willing to lend to us,

I know it is probably better to get a single mortage and use the money saved to pay my debters, but its just we want to have a home thats ours, one we both own. Then in two years hopefully re-mortage and get a better rate when my debts are all paid up. Sorry to go on and on,

all the best Ian.

lottie32

Hi herbiesjp and S1rEean

Thank you both for your comments.

herbiesjp - I guess the biggest problem with the debt is deciding what to do about it! We are currently looking at all options and trying to make the best decision. As he only earns around £750 take home and owes around £24000, paying it all back seems such a unmanagebale situation - it seems he will be paying back forever! And even if he does set up a payment schedule, what heppens when we want to start a family or buy a house together? He would not be able to afford the re-payments anyway due to the added committments. He had an IVA which failed as he could not meet the payments. We have looked at bankrupcy but I do think that is a very last resort. Do we just leave it and wait for 6 years to pass (well 4 now) so it just gets wiped anyhow, despite the effect it will have on his credit history - which is poor anyway as his IVA failed! Its so hard to know how to advise him or which way to turn!

Ian - That is very encouraging to hear that you could get a mortgage, despite the higher rate. I just feel sick to the stomach that he had got himself in this mess and it will effect him now for such a while - and I know he regrest it and wished he could change things. He definatley buiried his head in the sand as he just did not know what to do about it and i guess he hoped it would go away. I doubt I would be able to afford a single mortgage on a bigger property on my own and would need is salary when I move in the future so looks like we will have to take a higher rate I would be very interested to see which lenders you approached

Thanks again!