Big Deposit, Bad credit

cornsihblue

Hi all

My girlfriend and I are looking to buy her grandparents house as they are now both deceased. The estate is split between my girlfriends father and her two aunties and the house has been valued 230k - 240k. My girlfriends father is going to lend us his part of the estate to put down as a deposit. (about 80k)

We both have poor credit ratings and have a household income of 30k. Will have to use her parents as guarantors. They own two properties and have a household income of around 50k a year. They also have 100k in an account to use against the guarantor mortgage if we are successful.

We have applied to two mortgages brokers 'equity finance' and 'bower'. They have both said they cant deal with us because our credit is so poor.

We seem so close to getting this mortgage but again so far away.

Is there a guarantor mortgage which will go on the guarantors credit score and not ours?

Is there a mortgage broker out there that is more lenient towards people with poor credit ?

If we could unlock the 100k in my girlfriends parents account and add it to the 80k (180k) would a deposit this big improve our chances ?

Any advice would be greatly appreciated.

Cornishblue

ACG

I dont mean to dash your thoughts but your not close to getting a mortgage at all....

Firstly, your girlfriend cant "lend" the equity he has. He has to gift it you without reservation otherwise it wont be allowed by the lender.

Secondly, guarantors are there to bridge a small shortfall if your income doesnt quite cover what you need. Its not there to get around your credit issues.

There are lenders who will accept adverse, without a doubt. But you need to get a deposit and your income needs to support the mortgage and you also need to work on your credit - clear your debts if theyre not already cleared. Build up your credit scores and show you can be responsible with credit.

cornsihblue

Thanks for the advice. Do you have any mortgage brokers in mind that would help us.

thanks

cornishblue

cornsihblue

I don't understand. Why cant we get a bad credit mortgage even though those mortgages are designed for people with bad credit ?

GMS

What is the poor credit? CCJ's, defaults etc? How much and when?

Dave_Ham

Spot on. Your definition of bad credit and someone qualified's could be streets apart.

Exactly how much and when did you miss payments, get defaults and/or CCJ's, bankruptcy, IVA etc.

Many "bad credit mortgage" providers are not mad keen on gifted equity deposits, although given the numbers and brief summary, income multiples may pose a bigger consideration..

ACG

Dave_Ham wrote: »

Spot on. Your definition of bad credit and someone qualified's could be streets apart.

Good point!

I think the deposit is the bigger issue though.

cornsihblue

Well Iam still currently a student until Im finished in May. So the mortgage would have to go in my girlfriends name. She had a CCJ two years ago but that is now settled and she can get a letter from the courts.

She has four defaults some from 4 years ago and one that became active 6 months ago

Dave_Ham

Be grateful if you can confirm come active ?

The registration date on the CCJ will be crucial...

cornsihblue

CCJ was paid within 31 days and satisfied by the court May 2011

Dave_Ham

Very tricky, but dependent upon level of support from her parents would say there is likely to be a solution.

Get her Experian, Equifax and Call Credit files to a broker..

Good luck