Adverse only mortgage?

contrarymary1972

My husband and I are looking to buy a new house with a business venture attached. He has an excellent credit record. However, mine is poor due to lots of issues from a a nasty divorce (most of which are well on the way to being settled). However, my husband really wants this new business venture but needs my income (of £48000 compared to his £21000) in order for us to raise funds for the mortgage. Is my credit record going to stand in his/our way? Or, will we come under "medium" risk, due to his excellent record? I do have a specialist advisor visiting us next week (totally independent and recommended to me by a friend who used to be an estate agent). Thanks

ACG

Sounds like this might come under commercial lending?
Im not sure there is a market for adverse commercial mortgages???

Your situation would be taken as a whole, but the fact that you earn 2/3s of the income means that the risk is higher than if it were your husband who had the past issues.

contrarymary1972

No it is definitely residential. Being sold as residential, but with a building that is a dog boarding kennels that we would look to develop in the future, probably about 6 months after moving in.

Thrugelmir

contrarymary1972 wrote: »

No it is definitely residential. Being sold as residential, but with a building that is a dog boarding kennels that we would look to develop in the future, probably about 6 months after moving in.

Has the business ceased to trade?

contrarymary1972

It will be doing, yes.

bigadaj

You could hit a catch 22 here as if if it isn't a business, then the valuation will purely be on the house, in which case might you not be able to raise enough finance to pay the vendor what they want?

contrarymary1972

That's why we are looking to sell our house and then buy this new property as a residential property. But the lending market is a very different place to what it was when we bought this house 6 years ago - we got a mortgage in spite of my adverse credit (that was even worse at that time because payment arrangements had only just been put in place), hence my original question.

Wh05apk

If the kennels are a involved, and they have the correct planning permission, then most lenders will treat this as commercial.

Also when you say your credit history is poor, what's involved? Bankruptcy, repossession, defauls, ccj's?

contrarymary1972

2 defaults (5 years and 3 years ago - both settled) with a payment arrangement still in place for 2 cards (defaulted over 6 years ago), which I'm hoping to clear with the proceeds of my house sale. As for mortgages, I have a clear record, having never been a day late with a payment for 16 years.

contrarymary1972

Also, we would need 85% LTV

contrarymary1972

My payment arrangements have been organised very successfully through the CCCS for the past 7 years and I have kept to these faithfully, making overpayments whenever possible.