Mortgage guarantor or with partner with default

tebow

Hi there, I hope you can help.

My partner has a default settled feb 2010 but listed as being settled oct 2010 which is something we are trying to get rectified. Both otherwise impeccable credit file and actually partner has full score. the default was registered on an incorrect house number (they must have mistyped by one number) but still shows to lenders as a linked address although partner never lived there and we can't see the default on credit report, only a linked address but apparently they can see linked address and partners name and DOB there as having a default. And it is her default, so no arguement that it isn't. So we have been declined mortgage despite a with 10% deposit on home we want to buy for 160k with woolwich barklays despite the offer in principle being given to us by them (so we fell in love with house and made offers and got accepted etc to now be declined we are devastated). Does anyone think there is any lender that will lend to us? We both earn 24k work full time stable employed job, limited credit already in use.

Another question would be that on my own I heard I could get 4-5 times my income for a mortgage which would be 96-120k, plus 16k deposit gives me 112-136k. My mum has a pension and is a little over 60 and pension income is like 12500 p a, never had a mortgage and good credit history. Could she be a guarantour (as she has offered but we dont really understand fully what this would involve) so that I could get 90% of 160k (144k) or would this have to be secured on her home which I would never ask her to do, or is age too much?

Any advice really appreciated even if you think I should give up!!

Thanks so much, tebow

Dave_Ham

Good to see you still out there trying to make this happen.

Good call with Mum, but unfortunately as no lenders are really offering interest only above 75% loan to value Mums age would render the repayment mortgage unaffordable..

The default situation is interesting, has your partner had credit since then or currently has credit?

Do you get no overtime, bonus, weighting, shift allowance anything that could be added to the £24k?

With completely full declaration to a building society you may have a little luck, although suggest someone sensible has a good look through both of your Experian, Equifax files and bank statements first...

tebow

hi dave ham thanks again for replying.

mum is anxious about being a garantour anyway as they are only on a pension income and i wouldn't ask her to do anything she was not sure about.

no i don't get any bonus or anything other than my salary unfortunately.

my partner has a comet card she has bought on and paid off so balance nil and an overdraft of about £500 and a car loan that still has a year on it, all paid every moth on time. but these were in place before the default. interestingly when trying to rectify this the credit agency confirmed it was paid off in full in feb 10 and so we rang natwest (ICS? department) who the credit card was with and they can't find any record of her even with the card number and said she must have 'fallen off the system' and can we send the credit report in so they can see they put the default on then they can look at rectifying by finding the records and also we asked the credit/debt company to send us a letter confirming settlement we will send in too. the problem we have is that we can't see the default on experian as the mortgage people said it is on a linked address (which is incorrect) as it is one number out but shows partner and her d.o.b. -all we can see is the incorrect linked address on the list of linked addresses but it doesn't show any more info than that. so i need to see if the mortgage people will send me what they can see so i can send it to natwest as regardless of mortgage we would want it sorted. if there was an answer to our prayers they would remove it full stop given they have made errors - but that is me in dreamland not wanting to give up hope really.

so regarding the house which is 160k, i have a 16k deposit but on my 24k salary i could not borrow enough, so sadly now i think i need to give up hope with it unless anyone offers any further advice. at least we can say we tried hard though.

thanks again for your help though.

Dave_Ham

Unless you can get some outside funding to make up the shortfall I think it may be a stretch.

Who is your partners loan with?

tebow

Hi dave, thanks again. I thought that might be the case.

Its with black horse finance car loan well actually I think it's h.p. type loan. She banks with Natwest though (but that was who the default was with for credit card) and I have savings, current account credit card and had loan with hsbc does that make up for her default in any way if I tried with my own bank?

Thanks again for your help

Dave_Ham

Another dead end I am afraid. HSBC are a complete non runner as the strictest on the market.

Natwest would have been a shout, bar the default..

Only solution I could see is get 3 months payslips, statements and the works and get it to a manually underwritten bank or building society.

The deposit may then be an issue as some of these kick in at 20%

Only way you have a chance is to find a broker who specialises in adverse and cross your fingers...

If you find a broker, expect to pay a fee just ensure it is refundable if unsuccessful as this will be a lot of work...

tebow

Thanks again Dave Ham.

I am querying the credit file thing too - the default was paid off in feb 10 but they have listed oct 10 apparently but due to the error in the address we can't see the details of it. i am approaching this by querying the error in the address first as i can at least show natwest credit cards this so they can change it, then hopefully we can see the default and query the date on this. how long after settling a default would it take for mortgage companies to look at you again? both our credit scores are at 999 so we are gutted that this is stopping our purchase!

do you think there is a chance with a smaller building society? can you also recommend any building societies that manually underwrite please or is this something only a broker could deal with?

thanks again.

Dave_Ham

Ok, you are doing the right things querying the credit report as this is fundamental to success, as you know..

I am not in the market to start name dropping banks or building societies on the forum as I believe that constitutes advice and without knowing your full situation that is unfair all round.. They all work to differing criteria on many variables.

Some are accessed only by brokers, some are accessed by all. To look, I would first start looking at the building societies local to you or engage a good broker..

Sure there is a solution out there, was there no way to bridge the deposit gap and get in one name only?

tebow

Hi dave thanks, I appreciate what you're saying about the advice.

Well apparently I could get 120 on my own but we only have 10% deposit of the 160k. So I know we could look for a cheaper place but we have got so far with this house we would be too upset to compromise, rather rent a place we like ans save for better deposit and wait for credit file to repair if that's what we have to, but we don't want to.

I think I will look at local building societies and see what they say - we are in the derby area. The problem is we really don't want to mess the seller about as we wouldn't want to be messed around so there is only so long we can keep trying for.

Thanks for your advice- any more would still be appreciated!