genral enquiry to mortgage advisers

DVardysShadow

Thrugelmir wrote: »

Why not clear your debts upon the sale of the property?

Making a gift rather than repaying your creditors does not give a good impression as to how you manage your personal financial affairs.

I wholeheartedly agree with this. If the debts are paid off now, it goes on your record as 'default - satisfied' - which should come off 6 years after the accounts went into default - although this does not look too good against automated scoring, it does provide a coherent narrative that you had problems and you sorted them, which you stand a chance of getting past some underwriters I would have thought.

OK, it puts you 8k down on your contribution to the equity, but if you pay these debts off on sale of the former home, I think you can and should hold your head high rather than creeping around with devious ways to get past the underwriting process. Plus bringing good money of your own to the table will make you far more acceptable to be on a mortgage. You are lurking as a shadow on every mortgage application your partner makes. You cannot avoid that, so better to go in together, I would say. Take some time to research what would be possible for you doing it this way.

billycoco

Keiron 67. Im in a similar situation, my husband will be applying for a mortgage in his sole name due to my unsavoury credit rating. I genuinely hope you get a mortgage approved. Bestwishes. I have posted a similar question but would love it if someone could give me a straight answer:

Can my husband take out a mortgage in his sole name without me on it??! His deposit is purely his own savings and the repayments will be met by him solely based on his salary! Are there lenders that will lend to just one party of a married couple?

Conrad

HSBC do 1 party on mortgage, 2 on title, but the OP's questions cannot be answered in a black and white fashion. In the end it will come down to underwriters discresion.

Good luck.

PS - An EA broker will not have the experience usualy for a case like this. You've been comming at the whole thing from the wrong angle.

kieron67

thanks for the reply Conrad. To the others who replied, while i thank you for your comments I think you got hung up on me paying the debts rather than answering the question.

1. My first wife left me with debts of, if I remember correctly £30k+
I only managed to get a suitably well paying job to enable me to pay larger amounts off this sum in 2006. Since the debts were accrued I have paid off over £20k of them. I have had va's in place for several years to help with this.

2.My wife (girlfriend at the time) took out a letter of disassociation to keep our finances from being linked, she will not and does not want them linked until such a time that i am clear.

3. She was advised by the mortgage adviser that it was possible for her name only on the mortgage, she has also been told the same by the solicitor doing the conveyancing.

4. We are currently unable to use the equity from my house to pay off the remainder as, based on the original figure quoted by the adviser we offered on a house, an offer that was accepted. He then dropped the mortgage offer by £12k leaving us with a shortfall which we had to plug with a loan from the wife's parents. If we pay off the debts with equity it will leave us with another £8k shortfall and no means of plugging it, meanwhile, until the adviser returns from holiday all the transactions are still proceeding.

So whilst i understand the comments about clearing my debts (and trust me I hate being in debt) that is not a practical option at the moment. I would appreciate if the question as asked could be addressed (don't mean to sound harsh or ungrateful so please don't take it that way) I will pay off the debts but speculation about the effect of me paying the debts now and how it will relate to me being on a mortgage is speculation right now as the estimated completion date for all this is 5 weeks away

Thrugelmir

kieron67 wrote: »

2.My wife (girlfriend at the time) took out a letter of disassociation to keep our finances from being linked, she will not and does not want them linked until such a time that i am clear.

Then gifting her the equity in the property is a very clear association of finances.

You can't have it both ways.

kieron67

okay, i take the point there, but the solicitor said that that is the way to do it, gift the equity, write a letter to the lender relinquishing any right to the property and any request for the equity to be repaid.

As for a clear association of finances, it actually isn't, legally the only clear association of finances would be a joint bank account, joint mortgage account or gifting the equity without relinquishing the right to a stake or for the sum to be repaid. My wife has been through this several times with solicitors over the years. So your comment although i can see where you're coming from is legally innacurate and still doesn't answer my original question. I don't want or need to get involved in moral discussions about my debts the same i don't need to go into my first wife being a slapper and running off with a work colleague. It happened, i picked up the pieces, made the decision to pay all the debts off and try to move on with my life. I came here for advice as, part way through conveyancing it became apparent that the adviser was being less than legit about it. I was trying to find out the likelihood of my wife salvaging the deal as she is currently burstin into tears at the drop of a hat