Joint mortgage app decline - advice pls?

Kasialouise

Hi, I'm hoping someone can help with some advice?

I currently have a sole mortgage on the property I own and the fixed period ended last year.

My partner and I were going to move house and apply for a joint mortgage. We found the house, sold mine and applied with my current provider, YBS, for a joint mortgage on the new property. We had 15% deposit and I know my credit files are in tip top condition so I didnt worry too much about the application, however, it was declined.

I have since found out that my partner had let some pay day loans get out of hand last year and he has defaulted on four of them. His credit files (now I've seen them) are horrendous.....its no wonder we were declined. He has repaid the money outstanding but with four loans at default 8 and an old CCJ (2207) I dont think we'll get a joint mortgage for many years.

Whilst some of you may question why he didnt tell me, we're working on that and the impact its had on our relationship.

I need advice in the area of what I can or cant do next with regards to my current mortgage.

I'd like to go into another fixed price deal in order to take advantage of a lower interest rate, however, my partner now shows as a financial associate on my Equifax file due to the mortgage application. Will I ever be able to find a better product for my sole mortgage or am I forever impeded by his poor credit history??

If someone can help me I would be really grateful.

Thanks

kingstreet

Ask your current lender what customer retention products it has you may be able to choose from? These won't require further credit checks.

If you decide you need/want to move to another lender, you're going to have to find one which will accept your sole application despite the search creating an association.

Do you actually have any joint accounts, or is it just the search?

ACG

Write to equifax, get him removed from being a financial associate as he isnt as you have no joint accounts.

You may be able to apply on your own depending on your income and the amount you are looking to boorow.

The alternative would be to look at a lender who specialises in higher risks (which he technically would be due to the CCJs, defaults etc) These lenders would charge a higher interest rate - on about 15% deposit you would be looking close to 6%, they may require a 20% deposit but the rate would still be higher than a standard mortgage.
These lenders usually deal through brokers so you might need to speak to a mortgage advisor to get something.

3 points that need clarifying are...are the defaults over 12 months old and how much were they for?
Also have they been satisfied and if so, when?

Kasialouise

kingstreet wrote: »

Ask your current lender what customer retention products it has you may be able to choose from? These won't require further credit checks.

If you decide you need/want to move to another lender, you're going to have to find one which will accept your sole application despite the search creating an association.

Do you actually have any joint accounts, or is it just the search?

Hi Kingstreet, thanks for your reply. We dont have any joint accounts or joint anything, it was purely the search conducted in relation to the joint mortgage application that has created the association :mad:

Kasialouise

ACG wrote: »

Write to equifax, get him removed from being a financial associate as he isnt as you have no joint accounts.

You may be able to apply on your own depending on your income and the amount you are looking to boorow.

The alternative would be to look at a lender who specialises in higher risks (which he technically would be due to the CCJs, defaults etc) These lenders would charge a higher interest rate - on about 15% deposit you would be looking close to 6%, they may require a 20% deposit but the rate would still be higher than a standard mortgage.
These lenders usually deal through brokers so you might need to speak to a mortgage advisor to get something.

3 points that need clarifying are...are the defaults over 12 months old and how much were they for?
Also have they been satisfied and if so, when?

Hi ACG, thanks for replying. The defaults on the 4 loans were during 2011 and amounted to 2.5k. He cleared them all in February '12 after being bailed out by a family member. There is also an old CCJ lodged in 2006 which he has a letter from Registry Trust showing a status of 'Judgement Removed 29/03/07'

To borrow on my own on the new house I came in 12k short for what I could borrow against what I needed. I've come to terms with not buying the next house and to be frank, I dont want to jump into any financial commitments with him now or overstretch myself borrowing on my own in case things go wrong for us and I end up with the financial commitment on my own. I just want to be able to re-finance my current mortgage so as to benefit from a lower apr and lower monthly repayments......I owe 84k on my current mortgage and with my income I woudnt have a problem re-financing from an affordability perspective, I just didnt know how this new financial association on my credit file would impact. It would be good news if I could have him removed and if my current lender wouldn't hold it against me?