Good Credit/Bad Credit Joint applicants

sinbad0910

Using the RTB scheme my wife and i purchased our council home in 2007 with a mortgage from the ybs. My wife (now ex) left the property in 2009 at which time, due to the house price fall and what would have had to been paid back to the council by selling was essentially in negative equity. My ex wifes name is still on the mortgage to this day as my earnings did not meet the required level when the banks cut there five times annual salary etc deals. My wife is keen for her name to be removed from the mortgage and i have a financial arrangement in place with her. As it stands now i have roughly 15-20% equity in the property 76k mortgage with 93k value. Ive managed to keep up repayments for nearly 3 years on my own but im around £20k shy of them allowing me to remortgage on my own. I did a credit check on myself at noddle and came out with a 5/5 rating with not a mark on my credit record over the last 6 years. I have been with my new partner for 12 months now and we would like to remortgage together as her earnings from her part time job should certainly make up the 20k earnings shortfall in getting my ex wifes name off. the issue is while my credit rating is excellent her's is very poor, does anyone have experience of this particularly with YBS and what my chances might be of getting the mortgage in mine and my new partners names, the way i see it they've already lent me the money. advice help appreciated:)

Thrugelmir

Are the issues behind your new partners poor credit resolved ?

sinbad0910

Well on noddle she did come out poorly 1/5 due mainly to 2 credit card defaults totalling approx £2000 which she is paying off at a minmal amount each month. There are no ccj's bankruptcy etc, im just wondering how much of an issue it is likely to be as its gonna cost £200+ to simply apply for the name change. As she would be the secondary name and i'm not looking to add any more to the mortgage amount, im wondering if its worth at least applying given my unblemished payment record to date with the mortgage and other finances. Bearing in mind her earnings are covering the shortfall.

Thrugelmir

sinbad0910 wrote: »

Well on noddle she did come out poorly 1/5 due mainly to 2 credit card defaults totalling approx £2000 which she is paying off at a minmal amount each month.

This doesn't look good from a lenders point of view.

sinbad0910

yeah im aware of that just wondered if anyone (recently) had a smilar experience whereby there good credit rating and the fact they are essentially the bill payer might glaize over the poor credit of the secondary party. im guessing banks see it in black and white

Thrugelmir

sinbad0910 wrote: »

im guessing banks see it in black and white

Adverse credit rating, no thanks to your application. "We've" plenty of better rated customers to lend to.

sinbad0910

The frustrating thing is my ex who the bank are so keen to keep on the mortgage doesnt work, only has a semi decent credit rating becoz of me, and the bank would have no hope of recovering any debt from her should i default. Yet it sounds like considering my new partner who does work is a pipe dream, and Ive managed three years on my own without any help but it looks like i will be forced to sell the house to simply to get her name off the mortgage with no chance of ever getting on the housing ladder again.

Thrugelmir

The mortgage debt is a joint and several liability. The bank recovers its money from selling the property in the event of default.

Tackle your new partners debts. Don't give up hope. Take a long term view and you'll get there.

An old chinese saying. "A man who wishes to move a mountain starts by moving the smallest stones first".

sinbad0910

cynical forty something saying " you cant push water up hill forever!"

Thrugelmir

sinbad0910 wrote: »

cynical forty something saying " you cant push water up hill forever!"

And the alternative? Rent and have nothing to show for all your years of hard work.