Remortgage help!

lady_muck_2

Hi

I am new here so hoping you can help!

My partner owns his house with his ex wife and we want to take the property on ourselves (so remove her from the deeds and mortgage and add me). We are looking for 80% LTV on a property worth £285k. The exisiting mortgage is £235k but we are borrowing £225k as I have some money to reduce it.

ME: I am earning 55k and am in stable employment (8+ years same employer) and have one default on a credit card (late payment) from 2006 but otherwise no recent blemishes on my record. I have moved house four times in the last 3 years and have multiple addresses on my credit file which I think led to me being turned down for a loan early last year and again a few months ago (I couldn't see any other reason). I have no credit card debt and one outstanding loan (5k). I have never had a mortgage. My credit score is 465 with Equifax and 999 with Experian.

PARTNER: His credit file is good apart from one default on his phone bill early 2010 (his credit score is 465 with Equifax still). He has only just been put onto PAYE (earning 35k) but has been with his employer for 18 months as a self employed contractor. During that time I estimate his salary was closer to 20k per year. Before that he was the director of a limited company that sadly went into liquidation. None of this shows on his file but his salary was minimal as you might expect.

The questions I have are:

1. Is it possible just to take her name off the existing mortgage and add mine or do we have to remortgage?

2. A mortgage broker said we wouldn't be able to borrow from the best lenders due to our defaults but thinks we would be ok with a building society. The question is whether my partner should apply as 'employed' when this status is so recent? And, if so, what evidence of earnings will banks need?

3. We have to get a mortgage or we lose the house and things get very messy. Is there any way of improving our chances i.e. any particular lenders to consider or not? We wouldn't mind paying a higher rate of interest to begin with if needs be (and then remortgage at a later date for a better rate).

My biggest worry is getting a mortgage AIP and then being turned down because of our defaults, my multiple addresses (I have now been in one place for 20 months) and my partners employment record.

I really appreciate any advice you may have! Thanks.

kingstreet

Approach his current lender. Request a transfer of equity to remove her and add you. His credit and income probably won't be looked at too closely as he's already party to the mortgage. Your situation should pass scrutiny to make the transfer possible.

Expect to pay around £400 to £500 in legal and admin fees.

You are actually reducing the mortgage at the same time, from £235k to £225k? That should help.

lady_muck_2

Thank you! I will look into that as a possibility. If that isn't possible and we have to remortgage are there any lenders that are likely to be most sympathetic to our situation?

The situation we are in now is we really have to get her off the mortgage and me onto it / onto a new one. I have never had a mortgage before and am nervous having been turned down for credit not so long ago (saying that the lender did a 'soft search' on my file so there is no trace of it). Prepared to accept anything within reason just to ensure we can start a new life! (and in the hope that we can get a much better deal later once my partners' employment is settled).

lady_muck_2

The building society said they don't want to do this (without knowing any of my oersonal details - just the amount I earn) and the mortgage broker said probably because it is such a good deal and is interest only! Going to try with Nationwide unless anyone can suggest a better option....

Thank you!

kingstreet

Is there a repayment plan in place? If not, you are facing a change to repayment if you change lenders. You won't get an interest-only mortgage with no repayment vehicle at 80% LTV. Why not ask the current lender if a change to repayment would change its mind?

What's your broker suggesting? I can't see Nationwide doing it because of the defaults.

GMS

Are they defaults or missed payments which were rectified?

lady_muck_2

Mine from 2006 were late payments (a result of my payment dates changing - my fault for not setting up a DD!). My other half was late on one mobile phone payment in 2010 - I am going to see if he can get this removed as he says it was their fault.

No, there is no repayment plan in place and the interest only rate is low (payment is just £550 a month on a 235k mortgage). I woudl be happy to go with a repayment although they are not offering favourable rates on their website. Saying that, I just want a mortage at the moment and can afford to pay a bit extra per month to get all of this sorted.

Our broker has seen a pdf of our reports and suggested Nationside, followed by Kensingtons for a fixed rate (but he says their rate of interest is much higher) or Woolwich for a tracker....