Mortgage help please

themull1

Hi i wonder if anyone can help, my partner and i are in the process of trying to get a mortgage, ive got my own property, owe £75000 its worth approx £125000, good credit rating, partner lives with me, earns £40000, bad credit rating, he's got a £200 possibly payday loan in default, and £465 vanquis credit card thats still in dispute about how much is owed.

A broker managed to find a MIP with Precise Mortgages at 25% deposit, house we want is currently up for £180000 and is a builders part ex. we are hoping to part ex our house, for this one. Maybe get the builder to reduce price a bit. Maybe end up with £135000 mortgage.

The only snag is, is that the loan is only for 10 years, so the payments would be approx £1300 a month which is too much, the broker said that the £465 is due to 'drop off' credit file after two years on sunday, and that Precise mortgages might offer us a better rate, maybe a longer term on Monday, what does anyone think? Does anyone have experience of this? Thanks for your help.

GMS

Why 10 year term? Is it age related?

themull1

No, my partner is 53 so technically we could have had a 17 year term which would have been easier, at least until we could swap to a mainstream lender, but thats all they offered.

Dave_Ham

Hi there,

You need to start from the top, unfortunately many of the sub prime lenders limit lending to 65 years old.

What exactly is showing on his Experian, Equifax and Call Credit?

If there are defaults listed, when are they dated?

Assume you do not have enough income to justify sole applicant purchase?

themull1

We're waiting for experian, we checked on noddle, it shows he has 1 out of 5 credit score, ive got 5 out of 5 but only earn 15000 a year, so my lender, Nationwide will only lend me £66000 maximum, the default is from 30 june 2011, and the vanquis is an ongoing problem currently fighting with them over arrears due. In reality, partner owes them £130 but they incorrectly added penalties that were covered by insurance, and now wont take them off.

Dave_Ham

How much was the default from 2011 for?

The scores are worth nothing, but content is king.

Disputes with credit based companies over such a relatively small amount, quite often cause more grief than they are worth...

Depending how they play out on the credit files of course...

themull1

£200, i realise we will have to be penalised for partners bad credit, and i dont mind the 25% deposit, but to expect a normal couple to pay £13000 a month is a bit much.

themull1

That should read £1300!!

Dave_Ham

Try not to personalise it, they are just applying their criteria to your case.

Depends upon the exact details of all 3 credit files, I would think there may well be options with a slightly longer term and thus bringing cost down.

Sure your existing broker has requested a look at the Experian report and therefore they may well have the solutions...

themull1

The broker said that noddle and experian would be the same? but he just did a soft footprint so i dont know if they do a proper credit search if anything else is there that we don't know about? Do you know any lenders that may be a bit more lenient?

Dave_Ham

I would be speculating, as without the details of the 3 credit files it would be naive to guess further.

Noddle is not the same as Experian.