Mortgages with a Guarantor??

LAINEY81

Hi,

When stopping work to look after my children our household income halved making bill paying very difficult (understatement).

We made the desicion last year to sell our property and clear all debt using the equity and move to a rented house.

Our credit history is in complete ruin - Credit Expert advised me to put a summary at the beginning of my credit report explaining the missed payments/Defaults etc. I did do this but I don't know what effect it will have for borrowing in the future???

We have rented for the past year and can pay the bills no problem at all as I am now running my own business with a good income once again as well as my husbands.

Only problem is I don't want to rent for to long as I would like to buy eventually. I am sure no one will give us a mortgage with our current credit rating and lack of 'debt' on our records at the moment as we show as only having a credit card of £500 thats it.

I was wondering if a mortgage lender would consider my mum as a guarantor on a mortgage?? Does having a guarantor help my chances of getting a mortgage or is this kind of thing purely for the use of increasing the level of borrowing against income???

I know my mum would do it no problem at all and I also know I could afford to pay a mortgage but I am jinxed with my rubbish financial years of being a stay at home mum.

I've had a look online and I currently bank with LLoyds TSB but their lend a hand mortgage is rubbish! Who has that kind of money sitting around never mind willing to tie it up in a bank for years for the main benefit of someone else.....come on!

Is there any others that offer such things and is it advisable??

Any advice appreciated
Lainey81

Thrugelmir

Time will rebuild your credit rating. Along with saving a deposit towards a property.

Guarantor mortgages are few in number. Then difficult to obtain. As the guarantor has to be earning a good income and be credit worthy themselves.

_Andy_

Guarantor mortgages are for when there are issues with income, not credit history

Simon_gloster

_Andy_ wrote: »

Guarantor mortgages are for when there are issues with income, not credit history

As Andy said its for affordability.

What would happen is the supposex applicants would be scored first. If it decline as not affordable, a guarantor can be added.

A guarantor cannot be added to improve or bump up the exisying borrowers overall app score.

LAINEY81

I've just read on the website that eventually experian are planning to add rent payments to credit history so hopefully that will go some way to helping our credit score aswell.

I wasn't even aware of a guarantor for mortgages until today. I only knew briefly about loans and was confused as to whether they worked the same..... Would have been to easy if it helped with our credit score.

Thinking that time is my only option right now ( need to be patient I suppose and wait it out!!! Just a wee bit annoying that we get ourselves sorted financially and can afford it no problem now (and NOT have anymore kids!) but still no one will touch us. We were more of a risk with our initial mortgage i.e. just getting married/starting a family!! Its crazy!

Thanks for your quick responses :0)

Thrugelmir

LAINEY81 wrote: »

Just a wee bit annoying that we get ourselves sorted financially and can afford it no problem now (and NOT have anymore kids!) but still no one will touch us. We were more of a risk with our initial mortgage i.e. just getting married/starting a family!! Its crazy!

Your previous history is the problem. The fact you ended up in a financial mess and had to sell to clear your debts. Very blunt to say but factual.

Banks can choose their customers. That's the biggest change since the crash of 2008. This is the new norm.

LAINEY81

I wouldn't say we had to sell but it felt like the right thing to do at the time. I had had enough of robbing peter to pay Paul and it was becoming quite unbearable. The obvious solution to me at the time was to get rid of all debt that had went bad but I'm now finding out that this isn't really the case as my payment history stops on unpaid credit and I now have no payment history as I have no credit at all!

I'm hoping our decision wasn't the wrong one and we've not done ourselves more harm than good for buying a house in the future.
Renting is becoming more and more popular now but the idea of someone just saying you have to get out in a month just spurs me into a panic about not getting a mortgage for quite a few years yet!

Saving for a deposit right now so here's hoping I'm not wasting my time.

Thrugelmir

LAINEY81 wrote: »

I'm hoping our decision wasn't the wrong one and we've not done ourselves more harm than good for buying a house in the future.

Highly unlikely that this is the case. Being on a hamster wheel struggling to meet monthly bills is soul destroying. Creates tensions between parties and is extremely stressful.

Look upon it as if you've cut the tie to the ball and chain round your ankle.

In years to come you will look back and be glad you took constructive action.

LAINEY81

Thrugelmir wrote: »

Highly unlikely that this is the case. Being on a hamster wheel struggling to meet monthly bills is soul destroying. Creates tensions between parties and is extremely stressful.

Look upon it as if you've cut the tie to the ball and chain round your ankle.

In years to come you will look back and be glad you took constructive action.

Thank you so much you've given me a bit of hope that we've done the right thing. its been just over a year now since we cleared everything so hopefully we'll get sorted eventually!

Thank you!