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Advice if possible please.

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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
Total debt: £69,887 DFD: 2028

"Is there anybody in the World that I don't owe money to?"

Comments

  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    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
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • debt23
    debt23 Posts: 153 Forumite
    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
    Total debt: £69,887 DFD: 2028

    "Is there anybody in the World that I don't owe money to?"
  • MortgageMamma
    MortgageMamma Posts: 6,686 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    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
    I am a Mortgage Adviser

    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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