Need Help Please....

Keeran_2

Hello peeps,

Having declined by (halifax) yesterday, for discrepancies in my paperwork (?) which obv they didnt disclose, we have decided not to go ahead with the mortgage application elsewhere (apart from Lloyds TSB which I have applied online, coz am banking with them)

This post is for my OH, whos credit history is bad. He has no personal loans/mortgages in the past, all he has are credit cards - loads of them (like 12-13) and has many defaults on them the oldest being 2007 and the latest 2009. He did pay for a few months witht he CCCs but credit-crunch and lost his job in 2008... he managed to pay till 2009 and he then completely stopped taking their calls.

I know, he wont get a mortgage at any circumstances, but my question is... now coz we are not going ahead with buying the house, I am more than happy if he uses the deposit money to settle his accounts. He did say he will do them.
Will his defaults be cleared ? Will his credit history improve?
I am more interested in the long term implications rather than hurriedly buying a house tbh (must have thought abt the same before applying for mortgage I know!!! ) He is currently in his permanent job of 60k in an insurance company.

Kindly advice.

ACG

Lloyds/Halifax are the same company down the line - they may have different criteria but i doubt if halifax have declined you Lloyds will do anything different.

How much deposit do you have (as a percentage), those defaults are relatively old, it could be possible to get a mortgage.

If he pays off the defaults they will still appear on the credit report - for 6 years from when they were registered. The only difference is they will show as satisfied rather than not satisfied.

Thrugelmir

Time will heal. Don't waste the opportunity.

Keeran_2

ACG wrote: »

Lloyds/Halifax are the same company down the line - they may have different criteria but i doubt if halifax have declined you Lloyds will do anything different.

How much deposit do you have (as a percentage), those defaults are relatively old, it could be possible to get a mortgage.

If he pays off the defaults they will still appear on the credit report - for 6 years from when they were registered. The only difference is they will show as satisfied rather than not satisfied.

thanks for replying guys!
We have a deposit of 36k (from my side - gifted by my parents plus my saving) and he has around 8k as bonus this month.

Do you think he can try getting a sub-prime mortgage? kindly advice

Keeran_2

Thrugelmir wrote: »

Time will heal. Don't waste the opportunity.

Sorry I did not understand, do u mean... he should pay off?

Keeran_2

forgot to mention, he has a debt of 42k, he said if he speaks to the debt collecting agencies they will accept his offer and can settle everything with 21k. Not sure if it will happen though

ACG

How much are you looking to buy for?

Keeran_2

ACG wrote: »

How much are you looking to buy for?

Our offer on a house has been accepted (243k) and I was looking to borrow around 200k

lindsaygalaxy

Am I reading this right? Your parents are giving you a very big deposit for a house, but you are going to give this to your partner to pay off his debt when her earns £60k a year! Im soorry but I think you would be crazy and your parents should be fuming! £60k a year gives him a salary of around £3400 a month - he cant get through this amount a month surely? He needs to start tackling his debt 0 the £8k will surely make a big dent if he makes offers. Save the £36k deposit you have until the debts have fallen off/paid off and you are in a better position. If you pay off the debts for him there is every change he will just build it up again.

ACG

It might be possible, ive just had a quick mess about on an affordability calculator of a lender who accept adverse and it didnt kick it out.

I would personally knock lloyds on the head as i dont think you will get anywhere, but i wouldnt give up.

I would suggest speaking to a mortgage advisor if your to have any chance of doing this as theres a few things that could cause problems.

Keeran_2

lindsaygalaxy wrote: »

Am I reading this right? Your parents are giving you a very big deposit for a house, but you are going to give this to your partner to pay off his debt when her earns £60k a year! Im soorry but I think you would be crazy and your parents should be fuming! £60k a year gives him a salary of around £3400 a month - he cant get through this amount a month surely? He needs to start tackling his debt 0 the £8k will surely make a big dent if he makes offers. Save the £36k deposit you have until the debts have fallen off/paid off and you are in a better position. If you pay off the debts for him there is every change he will just build it up again.

Fair point! but.....