Mortgage Info/Advice?

Silmaril

Hi,

Basically i would like some different views on the best course of action for us to take..

Me.
Bad credit rating, CCJ 3 years old, 3 Recently Settled Defaults, No Oustanding Debt, No current Mortgage. Income £25,000

Her.
GREAT credit rating, Good use of Credit Cards, No bad debt what so ever, House Value: 72k, Current Mortgage 48k, Income £18,000

Combined take home pay: £3,000
Current deposit: Nothing
Rental Value of current property: £425
Guarantor: Yes, in great standing.

We are looking to live together and do not want to rent if we can help it. Currently im renting and she has a house which is a first time buyers mortgage and so not buy-to-let but due to a change in circumstances she is letting this (and will be advising the mortgage people soon)

We dont know if the best course of action would be..

For her to sell and get a new house with me using the money from the sale to get another property on her own

For her to re-mortgage and look to get a second property with the money from the sale to get another property on her own

For her to sell or re-mortgage for US to try for a mortgage together or use the money for me to get a first time buyer deal


I have a chat booked with the bank for wednesday and they probably wont be able to advise me much as we dont want them to do credit checks or link us together at this stage we are just looking for as much advice as possible before having any serious discussions with people.

Its a tricky one for people to advise on im sure, if you have any more questions or need more info to comment please ask

Thanks in advance all

Dave_Ham

Firstly, you will require a deposit.

Therefore you either sell the property and go for a single or joint application, largely dependent upon expected purchase price on the new property.

When were your defaults registered (this could be important)

Would not waste your time at the bank, with a 3 year old CCJ you are virtually guaranteed that you can play no part of a highstreet mortgage.

First Time Buyer deals are not really out there (Halifax stamp duty incentive has ended) and would benefit you here given the likely source of deposit funds.

Silmaril

There is an option to save for a deposit, we could comfortably save 15k over 12 months

Most recent one was registered January 2013, other two were Mid 2012 so still very recent.

I had thought that with the strength of her credit rating and the presence of a guarantor we would stand a change with the banks?

Dave_Ham

Given the recent nature of your default, would suggest this is a sole application including the sale of her existing property.

Alternatively, get consent to let and rent somewhere for a year or so.

Obviously no-one can advise you on whether you need to be living together in a mortgaged property and what that looks like, but I think you will be looking at a good 18 months before you are able to be on a mortgage and then you would require a 15% deposit.

Whilst it is not good news, at least you know where you are and what options you have now.

All the best

Thrugelmir

Silmaril wrote: »

but due to a change in circumstances she is letting this (and will be advising the mortgage people soon)

Consent to let is at the discretion of the lender. Not at the borrowers wish. So best to see what terms are available.

Alternatively remain in the property for a while allowing time for your previous credit history to age.

Silmaril

Thrugelmir wrote: »

Consent to let is at the discretion of the lender. Not at the borrowers wish. So best to see what terms are available.

Yeah we know... she's an accidental landlord

Shame about everything else for sure, definitely not what we hoped to hear