Part Buy Part Rent - with bad credit

malutki220

Hi

First I would like to explain my circumstances.
Some time ago I had HP for a car with Welcome Finance and defaulted on repayments (I've returned the car half term but apparently some insurance that come with it was to be pay for full initial term - I've challenged this via solicitor and eventually Financial Ombudsman but after 5 year battle my solicitor dropped the case stating that is unable to recover despite FB ruling in my favour). Since than (about 2 months ago) I've contacted the WF and have settled the default. This has been recorded on my credit score as partially settled and no money owed. Other than this my credit record is very good.

Now, I would like to finally get my first flat in part buy part rent scheme. This will be as joint with my fiancee. She got good credit history but low income (about £13000pa). I got income of £35000pa but credit history is bad
I'm worried that we will be unable to secure a mortgage.

Is there any chance for mortgage? Should we apply with my girl as main applicant?

Any advice?

kingstreet

How much is the default?

When was it registered?

How much deposit do you have, both in cash and as a percentage of the purchase price of your share?

malutki220

kingstreet wrote: »

How much is the default?

When was it registered?

How much deposit do you have, both in cash and as a percentage of the purchase price of your share?

Default was £3200
Registered 5 years ago and settled couple of months ago
We will only have about 7%-10% of the share we'll be buying (we intend to buy 25%-50% with the share price no more than £80000)

malutki220

anyone? please help

kingstreet

Is this a newbuild property, or is it a re-sale?

Is it in England? Northern Ireland?

TBH if it's newbuild in England, there's perhaps only Leeds Building Society doing over 90% SO on newbuild and I honestly can't see them lending on a default that size, even if it is historic. Their criteria reads;-

No more than one county court judgement (CCJ) or default, which must have been satisfied within 3 months of issue, with a total value not greater than £500, within the last four years.

You could go for an agreement in principle and see what happens.