Mortgage with Adverse Credit & Property in Background

Miss_Sparkles_2

i am posting on behalf of my sister by the way!

i have a house which i rent out at the moment as i cant afford to sell it (bought at height of market), i have consent to let so this is not an issue. i now rent somewhere with my partner and we recently went to a mortgage broker to apply for a mortgage as we would like to buy our first property together.

i have two defaults on my credit file as i joined a DMP in 2010, all debts have since been paid off and i am now debt free.

we have 10% deposit and a joint income of £66,000.my partner has no debt whatsoever. we managed to get an agreement in principle which allowed us to look for a house. last week we were told by our mortgage broker that santander, who gave us the agreement in principle had changed their minds and declined to give us the offer.

so my question is this; what, if any mortgage brokers would touch us as i have a property in the background as well as an adverse credit rating?

Thanks in advance

GMS

Santander changed criteria last week which means any adverse credit will now be a decline.

Could your partner not buy on their own? 90% with adverse and a DMP is going to be very difficult if not impossible.

Miss_Sparkles_2

thanks for super quick response!! he could do but the deposit is mine, would that have any effect on us? plus now that the mortgage has been declined, how badly will that affect my partners credit as his is perfect and i dont want my poor score to rub off on him!!


he earns £36k so what would you reckon he would be able to get as a ballpark figure? i earn £30k, is there anyway just he could get a mortgage but them know that his partner (me) will be living there and has sufficient salary?

the mortgage broker told us unless we have 15% deposit noone will touch us, so i sm pretty upset now the fact that i am debt free means nothing

Thrugelmir

Miss_Sparkles wrote: »

the mortgage broker told us unless we have 15% deposit noone will touch us, so i sm pretty upset now the fact that i am debt free means nothing

The fact that you entered a DMP is seriously to your detriment, far outweighs the fact you are debt free.

Why not move back into your current property and reduce the mortgage debt, in the process tackling the negative equity.

Simon_gloster

As some say, 90% with ANY adverse is a nono for those ledners that do entertain adverse. Even the occasional recent missed payemtn on a credit card at 90 would generate a decline.

Using partners circumstance alone, as long as their income is suffcienet would be the best option. Alternatively look for a lender that does not take into account defaults on application. Max Problem is though the LTV would be restricted to arounnd 75-80.