Mortgage - wife??

myright

hi guys

I have ccj of 2k which is setteled.
My wife has a clean record.

I know i would get rejected from a high street lender. however can my wife get mortgage on her name alone? She's earning 20k. How much should she be able to get?

Also I have a house on my name, which is fully paid off. Would that make it easier to get the loan/mortgage? Could I not get a loan or mortgage against that, without the ccj being a problem??

The thing is that i dont want to get mortgage from a specialist lender as I believe it would be far more expensive.

please advice.

Thanks

BoGoF

What deposit do you have?

What are your intentions for the other property.....rental?

Why aren't you considering selling it?

kingstreet

myright wrote: »

hi guys

I have ccj of 2k which is setteled.
My wife has a clean record.

I know i would get rejected from a high street lender. however can my wife get mortgage on her name alone? She's earning 20k. How much should she be able to get?

About £80k, plus deposit, to give her maximum purchase price.

Also I have a house on my name, which is fully paid off. Would that make it easier to get the loan/mortgage?

No. It would make no difference. You may get the rental income (if any) taken into account.

Could I not get a loan or mortgage against that, without the ccj being a problem??

Probably not. Remortgaging the current property on a BTL, if let and if possible, would help with the deposit for the purchase if that's what you're doing...?

The thing is that i dont want to get mortgage from a specialist lender as I believe it would be far more expensive.

You know that, or you think that? When was the CCJ registered? Is that all your "bad debt"? When was it satisfied? Who was it?

Why not simply set out your circumstances and your needs and let us help you from a point of knowing all the details, not just what you feel like drip-feeding us...?

myright

I'm really sorry I wasnt aware what other info you needed. So i will try to answer the questions the bets of my knowledge.

I got the CCJ by the college for unpaid tuition fees last year. However they are now paid . So it's been over a year now. (would be 2 years when I will be looking for a house tbh) . Yes this is all the bad debt I had. I have a credit card for 2 years and 2 mobile contracts which i have never missed a payment.

I dont know if a specialist lender would be worse or not? I was just assuming that.

as to a deposit, probably about 15k.

BTL would be something I would initially do. Maybe after a few years move into there. but Im not quite sure yet. The current house I am living in, is the 'family' house. So i wont sell this one.

myright

bump..............

kingstreet

So you're living in the mortgage-free property and want to buy a property you intend to let?

Are you saying you don't want to get a mortgage from a specialist adverse credit lender or you don't want to get a BTL mortgage product?

Have you got a purchase price in mind for this property? What would you anticipate the rental income to be? How much time have you spent studying the responsibilities of being a landlord?

TBH when I said you were drip feeding us information, I was hoping you might set out clearly what your situation is and what you are looking to do. Is there any chance you could do that?

For example;-

Property 1 - owned outright main residence and remaining so. Value £200K.

Property 2 - desired BTL purchase c£100k with £15k cash deposit leaving c£85k mortgage needed - anticipated rent £600pm on AST.

My income - £x employed x years
Spouse income - £y employed y years

Credit - CCJ for £2k reg 01/01/2011 sat 01/02/2011 unpaid tuition fee dispute.

ACG

Just because you had a CCJ doesnt mean you have to get a mortgage from a specialist lender. There are lenders that will allow CCJs...£2k is on the high side but it is only one CCJ so it shouldnt be impossible.

You have 2 options - the cheaper would probably be to mortgage your existing property and use those funds to purchase the BTL outright.
Your other option would be to get a BTL mortgage on the new property.

myright

kingstreet wrote: »

So you're living in the mortgage-free property and want to buy a property you intend to let?

Are you saying you don't want to get a mortgage from a specialist adverse credit lender or you don't want to get a BTL mortgage product?

Have you got a purchase price in mind for this property? What would you anticipate the rental income to be? How much time have you spent studying the responsibilities of being a landlord?

TBH when I said you were drip feeding us information, I was hoping you might set out clearly what your situation is and what you are looking to do. Is there any chance you could do that?

For example;-

fee dispute.

Thanks again for your comprehensive response!

i apologise once again for the lack of information. I will try to answer your questions with I hope more clarity.

In regards to specialist lenders, my only concern was that i thought it maybe too high price to pay in comparison to high street lenders. however if it isn't much of a difference, then i am not too worried.

Property 1 - owned outright main residence and remaining so. Value 100k

Property 2 - desired BTL purchase c£90k with £15k cash deposit leaving c£75k mortgage needed - anticipated rent £400pm.

My income - £20k employed 1 years
Spouse income - £18k employed 1 years

Credit - CCJ for £2k reg 01/011/2010 satified 01/02/2011 unpaid tuition ( this is only on my name and not spouse)


however all this above can change IF :
a) it's cheaper to remorgage my current house or possible.
b) it's cheaper to get a 'normal' mortgage on property 2 and move in there whilst, we let out property 1 instead. that again would have a estimated 400pounds p/m rent

hope i havent missed anything out

myright

ACG wrote: »

Just because you had a CCJ doesnt mean you have to get a mortgage from a specialist lender. There are lenders that will allow CCJs...£2k is on the high side but it is only one CCJ so it shouldnt be impossible.

I wasnt aware of this??? which lenders dont mind a ccj?

You have 2 options - the cheaper would probably be to mortgage your existing property and use those funds to purchase the BTL outright.
Your other option would be to get a BTL mortgage on the new property.

how do i go about remorgaging exisiting property? and wouldnt my ccj make a difference? also is this standard procedure like getting a mortgage out? i.e criteria wise? deposit etc

detailed answer above, thanks

ACG

Theres quite a few. Nationwide, Skipton, i think even Natwest plus loads more.

Not all of these will accept you - they may have limites to how much the CCJ is for, how long ago it was settled etc. Save yourself the agro, go and get a mortgage advisor, it MIGHT cost you £2-300 it might cost you nothing but it will probably save you hours or calling call centres and making any applications that have no chance of proceeding (saving your credit rating).

JimmyTheWig

myright wrote: »

hope i havent missed anything out

Yes, you've missed the answer to a great big question.

WHY?

Why do you want to do this?
What are you hoping to gain from it?

Interest on a £75k mortgage at 5% (not an unrealistic long-term rate, I'd guess, for someone with non-ideal credit history) would be £313 a month.
You'll be bringing in £400 a month rent, so it sounds like you'll be up on the deal. But there'll be fees to pay, maintenance, boiler servicing, etc. Plus periods of time (voids) when you won't have any tennants.
I think breaking even might be realistic.

There are valid answers to the question "why?". E.g. "I've always wanted to be a landlord.", "I think house prices around here are going to shoot up in value.", "The house we want to buy has got specific sentimental value, as does our existing house." But I can't think of many.


One more question: Whose name is your current house in? Would you be prepared to put it into joint names if it is only in your name?