Is a mortgage possible?

harvey1919

Hi everyone. I'm new to the forum

I am looking for some advice really. My partner and I both work, I am employed full time and my partner is self employed.

We both have a pretty poor credit rating but would like to buy a house. Although our credit rating isn't perfect, my partner already owns a house which is in £70k equity. What are the chances that a provider would supply us with a mortgage on a house worth £120k - with the £70k used as a deposit?

Our joint earning annually are £47,000 before tax.

Thanks in advance!

GMS

What is the poor credit? Defaults, CCJ's, missed payments or worse?

When did it occur?

How many years accounts for your partner?

Dave_Ham

My old motto of where this is a big enough deposit, there is a way still stands here, but we would need to know a lot more.

Please define poor - how bad are they, defaults, CCJ's, Bankruptcy, missed payments, late payments etc. try and be as specific as possible please.

How is your income split separated?

Assuming you have not already factored costs within the equity you will need to consider, estate agents, solicitors, stamp duty on new property aswell as the associated moving costs.

Possible yes - probable wont know without more information..

HappyMJ

In what way is your credit poor? A few late payments or more serious such as unpaid CCJ's and outstanding defaults. How many and how old are these?

Based on your income and deposit there is little problem. Is there any other debt? Is the £47k annual earning from employment and/or guaranteed contracts for the self employed part or from certified annual accounts?

It doesn't really matter as £50k should be easy enough to borrow on quite a low salary.

harvey1919

Thanks for the replies. Neither of us have CCJ's. Mine is down to late or missed payments though I do have these in check now and make regular payments. I have been refused credit before.

My partner's debt is also in check - he is on repayment plans with most of the creditors.

My annual income is £21,000 before tax and my partner currently has a contract with Barratts worth £26,000 annually.

My partner has been self employed for over 10 years.

Dave_Ham

Hi - you only have one option here in my opinion.

Sell the home to raise the equity from the sale and put the new mortgage in your name only. You will have to get indpendent legal advice and you can formalise an agreement that protects you both in advance.

Ultimately and I hardly ever say this, no-one will provide a mortgage for your partner whilst he is on repayment plans. You are soon likely to receive a barrage of posts on here stating this in a not so friendly manner; your partner has proved to the banks that he cannot sustain the level of debt he has and hence now on a repayment plan. It would therefore be naive of them to advance him further monies to get a mortgage.

You urgently need to get copies of both of your credit files, specifically yours as the only marketable one from Experian and Equifax.

Only then will you know if there is a way forward...

Good luck

harvey1919

Thank-you very much for this Dave - I really appreciate your help.

I will take a look at Experian now.

The house is a new build and due to partner's involvement with Barratts, we may be due to a discount on new builds - approx 10%, which would reduce the price even further.

Thank-you again for your advice. Now... where to go next!

Dave_Ham

Ok so this adds another dimension.

If he has a relationship with any of the decision makers, they may be able to help.

If he can raise near up the £70k, they could maybe put a charge on the property for the last £50k before discount amount and for you to pay rent on this until able to buy outright.

Don't know Barratt very well in terms of deals etc. but some of the smaller developers would possibly go for this especially if you took one in advance of it being completed and exchanged with deposit etc.

Just a thought, but worth an ask to see what can be done.

Do remember that almost all new build houses/flats are over priced to begin with and they expect to move the prices for the right buyers...

harvey1919

They do offer a part exhange deal on certain properties. I may visit their loca loffice to find out more though I don't want to get my heart set on something that may not be able to happen!

Thank-you for your advice, it is much appreciated.