shared Mortgage worries

jeanat9

Dear all,

I was wondering if any of you would be so kind as to give me your opinion on my current dilemma.

My situation is as follows:

Me and my partner are contemplating buying a house. I am more than lucky to have parents who will help me out with a gift deposit of 281k for the house we're hoping to buy. (at 560k including stamp duty). Both being first time buyers we recently found out we have to take out a joint mortgage for the property for both our names to be on it.

Here is the beginning of my problem... I lost my job about thirteen months ago and have been finding it very hard to find another job so far. Being too proud or too stupid, actually both go hand in hand in my case; I never told anyone about my financial difficulties and my pay off package and savings got to nothing, eventually taking me
into an overdraft of 3400 pounds. I've barely been able to see out of it for the last 4 to 5 months by doing some freelance work here and there. Basically scrapping the bottom of my overdraft every month. However, little to my advantage i guess, I never went past the limit agreed and have no outstanding debt.The money from my deposit will only be
available after the sale of one of my parents properties which is to be finalised beginning of January, so we're effectively on a chain.

Understandingly I'm hating myself and very worried that my partner and I will be denied our joint mortgage because of my bad record. They've asked for 3 month bank statements so it's pretty obvious i'm not doing so hot. My partner is on 75k on the other hand with 6 years in his job and perfect credit score. He will bring another 50k deposit on the house. So our total deposit would be 330k out of 560 and and we would need a 230k mortgage to secure the sale.

He was less than impressed with me hiding this of course and I think i'll go mad if the purchase eventually falls through because of me.

Could anyone enlighten me on how likely we are to be rejected? And if so would there be any other way of securing my deposit if the house was to be solely under his name?

Thank you for your patience and help if you find the time,

regards,

Lara

jeanat9

Any ideas anyone?

I'll break it down as it seems a bit of a mouth full now looking at it:

We're applying for a joint mortgage:

-I've been unemployed for 13 months being constantly negative on my overdraft for 4 to 5 month, almost to the 3500 pounds limit on this account.
-Never been above limit, no debt credit score unknown.
-My partner, on 75k a year in a stable job with a very good credit score.
-The house we would like buy is 560k including stamp duty.
-We're bringing a 330k deposit. so roughly 59 percent LTV
Applying for a 230k mortgage at 3.19 percent APR, 5 year fixed rate mortgage.for 25 years.

What would be our chances of securing that loan because of my irresponsible behaviour?

Thank you so much

Conrad

Your'e being gifted £281000!!!!!! and yet you have worries.

You probably have the most charmed situation I've come accross in yonks.

jeanat9

That's a bit of a relief thanks, i know i'm lucky for sure but i've kind of been caught out in a sticky situation which i'm really not too proud of. Also never expected the process of buying to be so stressful.
So you mean we should be able to secure that mortgage eventho i've been running my finances like an 12 year old?

Thanks for your reply, that's very kind of you.

auroan

Where are you buying ? Could you not downsize your plans to a smaller house with less of a mortgage / no mortgage at all ?

LC88

You could buy a very nice house in most parts of the country for £330k (apart from London) and then you would have no mortgage at all!

If you are worried about your credit score, be proactive and get a copy of your credit report. Experian and the 2 other companies will normally do your first one for free.

You also mention your not employed, I'm not sure how this will go down with mortgage providers. I mean ultimately they want to ensure you will keep up with repayments. Unless your partner can cover them completely on his own?

I think you need to speak to a mortgage advisor as they will look at your situation and provide advice. I believe if you get a mortgage rejection it will go against you on your credit rating (might need someone to verify this) so its not worth taking the risk of applying for a mortgage if your not sure you will be accepted.

jeanat9

Thanks everyone,

We thought about it but my partner was against it. Largely because he does not have my luck of having 281k deposit and wants to buy 50/50. Basically I have a lot of money and i don't because all the money i will receive has to be reinvested into property from my parents point of view. So i still need a lot of sorting out.
And yes unfortunately we do live in London...