Help with buying partner out and adverse credit

moozie_2

I used to be a regular on here but not used the forums forquite a while. Hoping for some advice please.

Purchased a property with my partner in 2006. We split up last year and we have now agreed that I will buy his share and continue to live in the property. He has just moved in with his new partner and they do not need a mortgage for the property as she owns it outright.

The rounded figures are as follows:

Joint mortgage balance: 151,000

Property valued at: 210,000

Agreed to buy him out at: 20,000 to add to the mortgage

My earnings: 61,000 pa

My debts: 6,000 at 0%

My savings: 5,000

I have checked my credit file today and the only item of concern is a default against a First Direct bank account in March 2010 for 5,100. The account was cleared in May 2012. Every other account is showing as settled or up to date.

I was declined by my current mortgage provider, Nationwide,based on the adverse marker on my credit file. They were happy with affordability.

Can anyone recommend a way forward for me to take on the mortgage with the additional lending please? We need to move on with our lives and this is the only thing left to sort out now – which is proving much more challenging than I thought!

Any help, very much appreciated.

Moozie

Dave_Ham

Hi there,

The numbers you have quoted are achievable, although the valuation will be crucial as many lenders will be capped at 85% loan to value.

There will be a selection of lenders, although likely to require a broker and the better the broker the better the terms you will achieve.

All the best

moozie_2

Thank you for your prompt response.

The valuation I provided above came from 3 estate agents and also Nationwide so I am fairly comfortable with it although I take your point about LTV.

My concern is more about my adverse credit issue and whether I will be allowed to take the mortgage on as a single borrower.

Thanks again.

Dave_Ham

At which point your 2 concerns are manageable, subject to a few showstoppers including missed mortgage payments in the last 12 months and/or payday loans in the last 12 months.

moozie_2

Thank you again

There have been no missed mortgage or any other missed payments in the last year. No payday or other loans either.

Dave_Ham

A decent broker will make this happen for you, subject to the absolute detail.

Let us know how you get on and do not pay silly high rates as your situation does not dictate that should be the case.

moozie_2

Dave_Ham wrote: »

A decent broker will make this happen for you, subject to the absolute detail.

Let us know how you get on and do not pay silly high rates as your situation does not dictate that should be the case.

Thank you, I needed that positive message as I am feeling rather upset on many levels.

I appreciate your comments.

Dave_Ham

Absolutely no problem, a remortgage with transfer of equity can be done and dusted in a few weeks so can put it all behind you.

Good luck

moozie_2

I have contacted Nationwide today and explained the position with the default, they advised they cannot progress the mortgage application based on that.

I also contacted the broker that we used to get us the current mortgage and explained about the default and he advised that he unlikely to be able to help as the amount of the default (5,100) is high and it's fairly recent. He will confirm later.

My ex partner will want to sell the property if I can't get his share of equity to him by the end of August which fills me with dread as it doesn't look like I will be able to have a mortgage on my own. This is so frustrating as I can afford the property and I love it despite all the history that brought us to this situation.

moozie_2

I don't really know what I was getting at with the last post. Frustrated and dissapointed and was venting. Sorry

Dave_Ham

moozie wrote: »

I don't really know what I was getting at with the last post. Frustrated and dissapointed and was venting. Sorry

Good call, Nationwide are not and were never going to do this application.

There are still lenders that will lend on fair rates based upon the information provided, if your broker cannot determine which ones then that his/her issue and should not be yours also.

Do not stress about being forced to sell etc. as this is a long process and unlikely to be an issue so long as you get new finance.

Ensure your existing broker does not guess at lenders and kills your credit file, by random, unnecessary applications blindly...

Good luck