Advice if possible please.

debt23

Hi all,

After a bit of advice if possible.

Heres the scenario - so to speak.

Wifes income is around 27K, mine around 24K. House is in the wifes name only and she has no mortgage on it, so total equity in it is 170K.

We would like to move and buy a home around the 300K + mark.

Now, because of my poor credit record (60K + in debt plus loads of CCJs etc) she had looked into buying on her own. Got an agreement for 110 K mortgage, so with the house equity that meant she had a total spend of 280K.

Our problem is that is just short (by around 30K) of what we need to get the house we want.

Now, if I did not have such a poor credit record then there would be no problem, as we would get a joint mortgage, but thats obviously out.

Question is, if wife used, say 35K of the house equity to clear my debts, then I would be debt free, but with a poor credit history, including all the CCJ, al be it, now satisfied.

Would this open up more options for us and is this the better way to go?

Maybe there is another answer that I have missed.

All help very much appreciated.

All the best

Debt23

herbiesjp

Well depending on the severity of your adverse credit history, and how recent it is, you could indeed look at a joint mortgage now

Clearing all your debts would improve your affordability in the eyes of the lender and clearing £60k worth of debts would be a huge step forwards.

The only thing is the rates offered may not be best rates on the market, again depending on your credit history.

Your wife may however be able to get the full mortgage amount in her name with some lenders, who may be willing to extend their income multiples due to the big deposit (low LTV) you have

HTH

debt23

Hi,

Thanks for the reply.

Ive still got all my debt at the moment, but we could clear it via using some of the wifes equity - so my poor credit history would be very recent!

I must admit, I was suprised that she could not obtain a bigger mortgage given the large deposit she can put down - at least 50%.

Perhaps we should shop around.

All the best

debt23

MortgageMamma

Hi debt23

I think the best way for you to find out what you can borrow and the best way to do it is to speak to a whole of market broker. Your situation is at best complex and requires serious consideration and dedicated time from a professional - it may be entirely possible that you can go on the mortgage, or it might be better that your wife does it alone, but you will never get a definitve and accurate answer on an internet forum, you need to do this properly

MM