First time buyer - credit record help please!

stephrose

My husband and I are looking to buy our first home (on a first time buyer 10% deposit mortgage, if it helps at all). He has a clean credit record, but mine is quite bad, due to some pretty bad decisions a few years ago. How much will this mortgage the mortgage application? If he applies alone, his income will not be enough to get the loan value that we need, but if we apply jointly, they'll surely take one look at my record and turn us down? (These are probably really obvious statements, but I just wanted that confirmed...!)
Also, my dad was saying that he has heard of mortgages that can be guaranteed by others, such as our parents, who have really good credit records under their belt. as anyone heard of anything like that, and could point me in the right direction?

Thanks so much!:o

Thrugelmir

How damaged is your credit record?

stephrose

While I was a student, I had a gym membership, council tax, a credit card and a mobile phone contract all handed over to debt collectors (2006-2008). All eventually paid off, but things were pretty hairy for a while. Since then, nothing serious, but I'm a bit forgetful and sometimes pay my Next and Very.co.uk accounts late which probably isn't great...

stephrose

Bump please:)

Simon_gloster

If you fail a credit score with a lender you cannot add a guarantor to the borrowers mortgage to bump their score up. Its for affordability isses only, therefore possibly husband and guarantor with you signing everything away and explaining why your not on the mortgage.

If some of the deposit is coming from you this can look bad so check thats ok first.
The age of the parent will also restrict the term and the guarantor will have to earn more tan your husband.

opinions4u

stephrose wrote: »

Since then, nothing serious, but I'm a bit forgetful and sometimes pay my Next and Very.co.uk accounts late which probably isn't great...

If you can't be bothered paying your bills on time, why should they give you a mortgage?

stephrose

Fair point, but not the most helpful statement...

In short: is there anything that we can do in the short term? Long term, I will be, of course, more careful about paying bills on time etc...

alleycat`

The reality is that nobody on here can answer 100% what the reaction of the lender will be to your adverse credit score.

Some lenders are more lenient than others but again how they'll react....

I would add that the response from opinions4u is how I'd react if i was a lender you approached.

Problems as a student i can sort of understand but a continued habit, accidental or otherwise, of not paying your bills on time shows a pattern that puts you in a less than flattering light (from a lenders perspective).

Most, if not all, cards allow you to set up a minimum payment DD. If you are prone to forgetfulness then i'd recommend that you take this approach going forward.

The other approach, with regards to your parents help, really comes down to if your parents are prepared to act as a guarantor for your husband alone.

The best approach, if i were you guys, is to sort out your credit record. Become a model repayment citizen for several years and save a bigger deposit.

Possibly not what you'd want to hear but a larger deposit with a repaired / improving credit score is a better approach and will give you more traction with the majority of lenders.