Help please! Mortgage Application

billycoco

My husband and I are looking to buy a house at present. We have a 15% deposit which is mainly his savings. I have some savings we are keeping for emergencies.

He has an excellent credit rating. Mine whilst is good now (I think), havent missed a payment on anything in five years, I do have a default that is due to fall off in two months (YAY!). We do not want to wait two months to get the ball rolling as we have seen a house we love and want to put an offer in asap, before it gets snapped up.

With this in view we have decided to take out a mortgage in his name only, based on just his salary, which would be more than sufficient for the property we hope to buy.

Husband takes home 2k a month basic plus o/t, has no debts and we want to borrow around 75k ish.

I am now panicking that although I will not be named on the mortgage anywhere, or my salary taken into account, that I could still hinder the application.

The only joint account we have is with Lloyds TSB which we opened in March, this account has a £500 overdraft which we have never used.

Can anyone advise me please. It would be much appreciated. We are seeing a mortgage adviser next week but I want to be prepared.

Thank you!

benjo

Sorry I am no expert, I'm sure one will come along soon though and offer more accurate advice.

In the meantime, since you are financially linked by having a joint account I am pretty sure you would show up on his credit file, I know that my husband shows up on mine and vice versa. Now I dont know in that case if a lender would search your file or not.

If they do search your file and if they take into account a default (I dont know if they will or not) then it is possible that it could affect their decision negatively, I dont know this as fact but in a round about way Im getting to my point.....

How long has the house been on the market? is it in an area that houses are being snapped up quickly? I know in our area nothing is moving very fast - it is worth checking those two details out, you might consider taking the risk of waiting for two months to put in your offer and letting the default drop off your file.

Your other alternative is to speak to a whole of market mortgage type person who can give you good advise about how this situation would affect your application, further, they will know where to place your application to give you the best chance.

Goodluck

Senior_Paper_Monitor

Obtain your credit reports and take these with you to the mortgage adviser.

It is certain that you will be 'financially associated".

I suspect you have little to fear (even if applying together - see comment below) but the broker's analysis of your reports will tell all.

Many lenders will not ignore a spouse on a single persons application anyway.

kittykitten

Don't panic! Go and see a mortgage adviser anyway, who should be able to give you a clue, based on the information you've given us here plus a little more, how much, if at all, this is likely to affect you. And as long as the adviser is just doing that, advising, not trying to get a mortgage agreement in principle, this will leave no trace on either of your credit files. If the adviser says everything should be fine and you go as far as applying for an agreement in principle from a mortgage comany, that is the first step that actually leaves a print on your credit files. Also advice should cost nothing - I'm using a broker at the moment, for my first mortgage application, who does charge a fee, but even his first appointment for this sort of advice cost me nothing.

herbiesjp

One way or another you should be able to get a mortgage - some will even agree with you on it.

As stated above, print off both credit files and then discuss the whole scenario with a good broker.

A good broker will come up with suggestions before doing any credit searches, and have discussed verbally with the lender to make sure you fit criteria.

billycoco

Thanks everyone for your messages!
Senior paper monitor... do you mean Many lenders WILL ignore a spouse on a single persons application anyway? Rather than not?

Im just struggling with this... I really hope I am being paranoid! The mortgage application will be in just hubbys name, based on his earnings only, and our only joint aacount is the current one I mentioned previously. I have no desire to be noted anywhere.

I would feel terrible if my past stupididity prevented my husband getting a mortgage :-(

Senior_Paper_Monitor

I mean exactly what I said - many lenders will NOT ignore the spouse of a single applicant.

Whether you desire it or not - you are noted, by virtue of the joint account if nothing else, on his financial/credit records.

From your description it really doesn't sound terribly serious - get your credit files and go see a broker.