FTB option advice

dcrane

Hi,

I'm looking for some advice on mortgage options. A bit of a background...

We currently rent privately and have done for the past 7yrs. When I first met my husband he was in alot of financial trouble with loans and credit cards being unpaid, a year in I tried to take control of the situation and we (regretably) ended up with a debt management company.
The debt management was a complete mess, orginally meant to be for 5yrs when we approached the end of this we still owed in excess of £2k. My husbands parents stepped in and paid the outstanding balance toget us away from the company.

We are now hoping to buy a property on the shared ownership scheme, something we have thought long and hard about after looking at other avenues. We have been to our bank (HSBC) who have turned us down, although have stated a number of time we have great credit history WITH THEM.
My father in law has started the ball rolling on a remortgage so they can provide the full amount needed to purchase but has asked us to continue seeking a mortgage on our own. I have spoken to Santander who have refused due to the debt management, completely understandable and not a huge shock. I then spoke to Halifax who have said they could see no problems as long as we have been honest and we can privide a 15% deposit, again my inlaws are happy to help us with this and give us this as a gift.
Getting our own mortgage would work out better for us financially BUT I susupect this could take sometime given our [read as my husbands] background and we need to act quickly for a couple of reasons 1) the property we are interested in is quite popular and 2) we have been issued with 2 months notice - this is an issue in itself but at this point is pretty null and void as we have a contract until Nov12 and the LLs situation doesn't fall into any of the clauses

Any way no real question just after some advice on the situation/likelihood of halifax giving us a mortgage, any where else I could try or another option that hasn't been considered by us

Dave_Ham

Hi and welcome,

When did the debt management end (in total) and did you get any defaults or CCJ's prior to this process?

Additionally, have you printed off your Experian and Equifax credit reports to see what is on there?

dcrane

Thank you for the quick reply.

The debt management was ended last year (roughly end Feb/ begining March) during our time with the debt management there were many defaults on payment due to THEM paying late. Our payments to them were always on time and for the full amount required, no CCJs were ever issued.
We have both been onto credit expert, my husbands rating is good but we believe let down a little by a loan still in it's infancy (payments started this month) We haven't looked too closely at mine as I'm currently a house wife and thought it would be an idea to leave me off until I am earning again

Dave_Ham

Firstly, forget what HSBC said. They are the most selective lender and therefore pick and choose to suit them.

When you say loan in infancy, what bank is the loan with and when taken?

Sorry for the questions, typically you would undertake a full fact find before give any solution but obviously on here try and get some knowledge and then give you a better idea of your position...

dcrane

The loan is thorugh HSBC and was used to pay of the credit card (which was being paid at twice the minimum payment due) My husband took it out in Feb and the payments started this month.

Dave_Ham

So if he was automatically accepted for the loan, I think you will be ok with a mainstream lender now.

Declare everything (as you said) and if you struggle or are unsure on risk, just get a decent broker and do not spend your time and credit score approaching every lender on the highstreet.

Halifax is a sensible option (within what I can see) although do be aware that when in these branches, unless you ask a specific criteria question, they will always tell you it is worth a go, or should be allright as it is the only option that specific bank has and have targets themselves...

Good luck

dcrane

There have been a few developments over the last day and half. Firstly we need to increase our deposit to 20% as it is a brand new property , thankfully my inlaws are happy to increase the gifted money. Secondly it has now come back as unaffordable, we are aware of why this is (my husband has recently purchased a motorbike to allow the move) The mortgage consultant believes it may be worth trying my husband as a sole applicant with 3 dependants, I was happy to take this route from the begining as I will not be financially involved until I am working again at which point we will start over paying on the mortgage. Would this be a wise route to take? and what are the chances of the affordability changing by just removing myself?

The_J

Why, in the name of all things holy, do people get the credit before the mortgage is sorted?! Please, if anyone is reading this and thinking of doing something like that, ask the question on the forum before.

dcrane

The_J wrote: »

Why, in the name of all things holy, do people get the credit before the mortgage is sorted?! Please, if anyone is reading this and thinking of doing something like that, ask the question on the forum before.

The application for the credit was made before we knew we could possibly be accepted for a mortgage. We have had it in our heads for so long that we would never be able to buy a property due to our previous financial situation, we were just convinced we wouldn't be able to get a mortgage. Unfortunately it was an oversight on our part and I do whole heartedly agree that if anyone is in a similar position they should most definately explore their mortgage options before commiting to any other credit.

However I don't think your comment is constructive to our position as is and certainly does not answer the questions I have asked

Thrugelmir

What's your own credit rating like? Do you have any credit card debt, overdrafts etc?

The_J

You can certainly try in your husbands name, I mean you're talking to a mortgage consultant already who has the benefit of a full factfind whereas you have just posted a long winded explanation of bad credit and neglected to mention the incredibly relevant parts, hence the frustration.