Mortgage options please

sso3es

A few facts;

* I have 15k available but horrific credit (genuinely, obtainign a mortgage will be impossible.

* Girlfirends parents are well off and will help us- I guess they would match my 15k???

* I am happy to hand over my 15k to girlfirend/ her parents and be a tennant

* GF's parents are both retired but very well off- he has plenty of income from pension plans as well as money in the bank

* GF earns 24k per annum (I earn 35k but I guess this is laregly irrelevant?)


What are our options? Looking for what would most likely be a small flat in London.

Thanks for your help

Dave_Ham

Hi there,

Your view of horrific and mine may differ, humour me and please elaborate how many defaults, late payments, CCJ's and the dates. Will be worth you checking on Experian and Equifax if you do not know.

There may be traditional solutions at this point, depending upon what approx. purchase price you are looking at.

You have identified that you could buy in OH name, but guessing that London prices (as I well know) will rule this option out. Some lenders will not like this approach either, so go in with eyes open..

Her parents may be a consideration, although this could be harder given ages as interest only mortgages are not about and therefore your repayment term may be restricted - not always the case depending upon lender

sso3es

Thanks for the swift response; I have 2 CCJ's numerous defaults and outstanding debts which have been handed to debt collection agencies. My credit score was 425 I believe.

I cannot even obtain a current account, let alone a loan, overdraft and credit cards.

London prices are a stumbling b,lock but perhaps not out of the question. Her parents have already intimated there is about 60k for her that they have already given to her sister. I have a good relationship with them so they have kindly hinted that they are ready to help both of us, but obviously I have to bring something to the table. Bringing home 2k a month salary, I would be able to to commit to about £700 per month in rent/mortgage as such (as well as the 15k)

Cheers

Dave_Ham

The CCJ's alone would not be a dealbreaker, unless they are recent. Assuming that these debts are still about and not paid, which as you stated to be fair would scupper the deal.

Unsecured credit is actually more credit rating specific than a mortgage, as some lenders will actually look at a case and not a credit score. If you have paid them back (satisfied the debts) then you may have an option.

Subject to the above, it may be a case of OH and a parent although sometimes retirement income is pretty difficult to get a lender to interpret appropriately.

How much are you looking to borrow - approx?

sso3es

one CCJ is being repaid from 3 years ago, another is fresh in the last few months (an old debt but a new CCJ- I am sorting myself out but have about 15k debt from about 12 creditors)

I imagine we would need about 220k

Conrad

Possibly parental guarantoring is the way forward here. It would be quite a lot cheaper than a mortgage that has you involved in view of your credit, in particular that recent ccj. Any lender would have a hard time proving you pass the responsible lending test just now. Possibly Melton my consider you but they will want 3 or 6 months Bank stats to see how you conduct yourself and thier income mutiples are quite low.

So all round the guarantor route with your gf as main app would be better, but there are other options to.

I'd suggest you find a good and experienced local broker. Don't go for some bod who goes through a tick box excercise and ends up messing up your chances. Somehow make sure the broker is very experienced.

Good luck

Dave_Ham

You were correct to preclude yourself given this information.

OH would get max £125k mortgage, so if your cash and parents cash cannot get to what you need you will need another applicant.

A decent broker as suggested would help, but you will need to all fully understand the implications of OH + parent plan.

Depending upon their exact age, you may hit some issues around repayment costs as previously stated.

All the best

sso3es

thanks for your help- It confirms what I probably already knew that it isnt an option for me to be part of a mortgage in name- that's fine, I have to live by the mistakes I have made financially.

I guess it all depends on what her father is willing to do and how he is willing to do it. He is a little conernced that he couldnt be part of a joint mortgage because he no longer works and may not guarantee a mortgage because he is already a guarantor for his other daughter.....