Advised to be 'separated' and other LTV mortgage qus - Advice appreciated!

nicp60

Hi there,
My husband and I went to see a whole of the market mortgage adviser yesterday and I wonder if anyone could clarify some of his suggestions?

I'm technically a FTB (had a mortgage 5 years ago, but renting atm) and have 2 defaults. One is dated Jan 2009 for £8000, and one is dated April 2008 for £800. Both are now fully paid off. I understand that this makes it very difficult to get a mortgage and we'll obviously pay higher rates and need a higher deposit.

I earn £38k and my husband is jobseeking as he has just graduated.

We are seeking a mortgage of £85k for a property worth £100k. We have £15k deposit and about 2k for fees etc.

The guy we saw told me to apply as a sole applicant and to state that my husband and I were separated. I understand the reasoning behind it, but did not feel comfortable at all with this - is this standard practice? It strikes me as fraud!

He recommended a mortgage with Aldermore, at 80% LTV. We got a DIP on this, which is great, but at only 80% LTV it prices us out of a lot of properties due to our deposit (we're stretched for that as it is). Does anyone know of any adverse credit lenders who would look at 85% LTV?

The one thing in my favour is my salary I believe, so we'd like to stick with £100k properties. If we can only get 80% LTV, we'll probably be unable to buy something right now and would just wait until my credit clears up and we have a bigger deposit - baby on the way and renting a house in disrepair makes me just want our own place at the moment!

Many thanks for any advice!!

Dave_Ham

Find another broker or search for lenders as there are 2-3 lenders that would look at this as joint at 85 percent.

Aside from the obvious, the nature of the deposit will be an issue for brokers plan A.

All the best

Wh05apk

Definitely find another broker, although the fact that you mention a baby on the way also concerns me, are you sure now is the time to be buying?

Building_Surveyor

if your planning on going on maternity leave and your husband is unemployed what are your plans?

nicp60

Hi there,
Many thanks for all your replies.

My maternity leave is fully budgeted for as I am very fortunate and have excellent maternity benefits. I also have separate maternity leave savings that will cover me and top up my pay to my normal wage (take home 2k monthly) for the duration of my leave.
This is in addition to our deposit.

Many thanks for all your replies. I'll hunt for other lenders who would consider this and will also hopefully speak to L&C tomorrow as advised by Martin!

nicp60

Thanks for the advice - I spoke to London and Country today and it could not have been a more different conversation to the one I had with the first broker.

He's confident we can get a better LTV deal with a mainstream lender without having to lie and possibly commit mortgage fraud.

Thanks everyone!

Building_Surveyor

Good luck! any broker that was encouraging you to lie sounds like a complete rogue.

Thrugelmir

You'll need to declare your husband as a dependent irrespective of whether he's named on the mortgage or not. If he manages to get a job all the better.

nicp60

Thanks. Yeah I would have assumed that I'd have to declare him anyway.

I'm astonished that we were told to lie! Call me naive, but I would have thought that these rogues and idiots would be more careful nowadays. the L&C bloke was really great - I'd definitely recommend them.

bigadaj

Though many people were lying right the way through the middle of the last decade, applicants, brokers, bank staff etc