Can anyone advise the best thing to do regarding applying for FTB mortgage

Watto30

Hello all,

This is my first time posting on a forum but I have been a long time lurker so please forgive me if I ramble on too much!

Am just after some advice regarding mortgages for first time buyers, here is my situation:

Been with boyfriend 6 years since 2006, living in rented accommodation together for five years at a cost of 800pcm, I went bankrupt in 2004 due to my own stupidity and silly financial decisions, boyfriend on other hand has a squeaky clean credit record, he was married but going through divorce when we met and signed over the marital home to ex wife and daughter (he pays CSA of £280 per month for the child) so has had a mortgage before, I never have. Life has kind of passed us by over the last five years and instead of saving for a deposit for a mortgage we have enjoyed holidays, days out etc now a situation has come up where a friends father has passed away not too far from where we currently live and the house will need to be sold and is being offered at a cheap price and if we could get a mortgage then it would work out less per month than what we pay in rent at the moment, but this is where the problems come into it, due to my bankruptcy I have a feeling that it might be best if he applies for the mortgage on his own, I earn 33k have no debts and have a credit score of 505 on equifax as of yesterday, he earns 32k per year and has no debts or financial commitments other than £280 per month csa, he seems to think it would be worth our while speaking to a mortgage broker and explaining the situation about my bankruptcy etc and to see if we can get a joint mortgage where I am convinced he would be better going to his own bank (lloyds) and asking for a mortgage on his own - I would obviously be paying half so would need to get my butt covered somehow if we came to split up if you see what I mean. Forgot to say we would have a deposit of 10% LTV

So my question is would it be worth our while paying to see a mortgage broker who could potentially get us a joint mortgage but at lord knows what rate or should he just apply to his bank or some other lenders? sorry if this seems a silly question but just dont want to get stung having to pay out for a mortgage broker if we would be better off just going straight to the banks

Thanks in advance for any replies

Dave_Ham

Get a mortgage broker recommended if possible, and not an Estate Agents advisor.

An experienced broker will know where to place this, granted you will probably pay a fee however never use a broker whose fee is non-refundable if they do not get you an acceptable solution.

You should not be in silly rate terriority given what you have posted.

I would suggest that you check Experian, Equifax and the Insolvency Register to ensure there are no naughties from the early 2000's on there still, that should not be..

You should be able to achieve this in joint names and that is the most protected, best advice. Do not let embarrassment be a reason to put in OH name only...

Good luck

Watto30

Dave,

Many thanks for your speedy response and advicce, it is much appreciated

Thanks

Watto

Wh05apk

Dave_Ham wrote: »

You should be able to achieve this in joint names and that is the most protected, best advice. Do not let embarrassment be a reason to put in OH name only...

Good luck

Really? 90% with a bankruptcy?

Has the bankruptcy been repaid?

What's the property value?

Dave_Ham

Wh05apk wrote: »

Really? 90% with a bankruptcy?

Has the bankruptcy been repaid?

What's the property value?

Yes, I assumed given the timescales that the bankruptcy would have been repaid and discharged.

Watto30

Hi yes the bankruptcy is discharged, I just checked and not showing on the insolvency regsiter, will need to check experian too as per Dave's advice but equifax was showing nothing about bankruptcy or defaults that were included in it when I checked this yesterday and my credit score was showing as fair.

The property value is £130k so would need a mortgage of £117k which I think based on the OH's salary he could get on his own if needed but I just wanted to ask if it was even worth us attempting to get a joint mortgage given my bankruptcy or whether to go straight for him getting the mortgage on his own as I had presumed we would get a cheaper rate if I was taken out of the equation.

Thanks

Dave_Ham

I think you will be ok, with a suitable broker.

As you state clearly you will be ok in OH name only, although not necessarily the best option longer term.

Ensure if buying from an Estate that Probate etc. has been carried out (if appropriate) as otherwise you need to set your expectations time wise.

Good luck

Watto30

Many thanks for your advice Dave, I think it may take a while yet as the probate will have to be done but that will do us a favour as we can save more money either towards the deposit or for some of the works that will need to be done to the property ie central heating etc hence why it is being sold so cheaply.

I just noticed that you cover Essex and London, we are based in the Thurrock area in Essex so if you know any mortgage brokers you could recommend or indeed are based anywhere near this area then please could you pm and let me know if possible, many thanks

GMS

Make sure you declare the bankruptcy to the broker regardless of whether it is showing on the searches or not. Some lenders specifically exclude anybody who has ever been bankrupt and whilst it may not show on the searches for the lender whilst underwriting it will show up during the conveyancing process.

Last thing you want to do is to get a mortgage offer only for it to be withdrawn at the last minute

Experian_company_representative

Good advice. If you failed to declare a past bankruptcy and the lender found out they might label you a fraudster which would really put the mockers on things.

James Jones