We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Buy to Let - Bad Credit History - Help
willLeeds
Posts: 126 Forumite
Hi,
I bought a house with a friend and ran i personally came into financial difficulty, including 2 defaults (4 Years ago)
Now the one thing i always made sure was paid on time was my mortgage with Nationwide.
My friend has decided he wants to move in with his GF, im much more financially stable, and paid him out the equity and continued to pay the mortgage my self.
Coincidentally i also have been offered a position in London and an planing on renting the property out.
The questions are...
1. Would i be able to change the mortgage into my own name with my poor credit rating?
2. Would my credit file effect my ability to switch to a buy to let?
3. Whats the best order to deal with this? Should i try change to just my name first? Should i switch to buy to let then remove my friend?
Any help would be great.
I bought a house with a friend and ran i personally came into financial difficulty, including 2 defaults (4 Years ago)
Now the one thing i always made sure was paid on time was my mortgage with Nationwide.
My friend has decided he wants to move in with his GF, im much more financially stable, and paid him out the equity and continued to pay the mortgage my self.
Coincidentally i also have been offered a position in London and an planing on renting the property out.
The questions are...
1. Would i be able to change the mortgage into my own name with my poor credit rating?
2. Would my credit file effect my ability to switch to a buy to let?
3. Whats the best order to deal with this? Should i try change to just my name first? Should i switch to buy to let then remove my friend?
Any help would be great.
0
Comments
-
How much were the defaults? What for and which lender? Have they been satisfied?
How much is the property worth? How much do you need to repay current mortgage and buy out friend?
What is the estimated monthly rental? How much do you earn?I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
The property is worth £95,000
We have £74,000 left on the mortgage with payments of £350 per month.
Ive already agreed a year contact with someone for £495 a month, there is some costs involved ground rent, service charge etc works out i will on the deal im on now make a small amount a month, around £25.
I earn, £28,000 basic with bonus up to around £35 - £36, with my basic going up to £36 in Jan.
The defults were with a HSBC current account over draft and a Egg Credit card. Both satisfied, one due to come off in Jan next year, the other 11 months later.0 -
Definitely one for a broker. Many BTL products are broker only and especially with adverse present.
Have you asked your current lender fro Consent to Let?
What will be your residential status when you move?I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Im planning on renting in London.
Do you have any recommendations for brokers?0 -
Not allowed to recommend brokers, forum rules.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
-
Ah ok.
Is there anything i should or shouldn't look out for in a broker then?
Im going to send some time this week researching as much as possible0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.5K Banking & Borrowing
- 253.7K Reduce Debt & Boost Income
- 454.5K Spending & Discounts
- 245.5K Work, Benefits & Business
- 601.4K Mortgages, Homes & Bills
- 177.6K Life & Family
- 259.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards