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Mortgage Query.

Hi All,
i am asking this on behalf of a colleague.
She has to leave her property for reasons beyond her control.
As a couple they have a combined income of £45k, but her partner has an IVA and has a bad credit rating from debt in the past, he is currently debt free.
They are struggling to get a mortgage despite being able to service a healthy mortgage.
Is there anything or anywhere they might try?
All advice, suggestions very gratefully received.
Thank you
Nick
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Comments

  • StuC75
    StuC75 Posts: 2,065 Forumite
    If he is still paying the IVA then he isn't technically debt free.. If there isn't any financial association in place then would your friend be able to buy just based on own earnings? so isn't hindered by partners adverse history..
  • The IVA is completed, her income isn't enough to get a decent mortgage, it would need to be a combined loan.
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  • kingstreet
    kingstreet Posts: 38,972 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Would depend on loan to value.

    Talk to a whole market broker. Avoid national estate agency chain advisors and avoid the high street banks and building societies as "computer says no" attitude will do more harm than good.

    Obtain all three versions of credit file before seeing broker to provide full picture.
    I am a mortgage broker. You 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. Please do not send PMs asking for one-to-one-advice, or representation.
  • They would be looking for around £140K on an income of £45k. Is that practical?
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  • kingstreet
    kingstreet Posts: 38,972 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    The purchase price isn't particularly important, in itself.

    It's the loan to value, or the amount they wish to borrow, divided by the purchase price of the property, which is the key.
    I am a mortgage broker. You 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. Please do not send PMs asking for one-to-one-advice, or representation.
  • I get that, what I'm trying to determin is if they are likely to get a mortgage at all with his credit history. I think they would try and put a 10% deposit on a property of £150K
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  • kingstreet
    kingstreet Posts: 38,972 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Without knowing the loan to value, it's practically impossible to say.

    At 90% I suspect they will struggle.

    The whole market broker is the best option for proper advice once the full circumstances are revealed.
    I am a mortgage broker. You 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. Please do not send PMs asking for one-to-one-advice, or representation.
  • Can you advise where I would find a whole market broker?
    Thanks for your input and help.
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  • kingstreet
    kingstreet Posts: 38,972 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    They should ask friends and relatives for a recommendation.

    Failing that, try https://www.unbiased.co.uk, switching off the "sponsored ads" only option so they get a full list.

    Ring around and get a feel for them and see if they sound like they can help. Avoid paying any high arrangement fees until offer/completion to avoid someone taking the fee and not delivering. There are still some like that in the business.

    You should be given an "Initial Disclosure Document" early in the process. This sets out the broker's service, remuneration and regulation issues.

    Avoid those who do not provide one early in discussions.
    I am a mortgage broker. You 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. Please do not send PMs asking for one-to-one-advice, or representation.
  • For example, The house is £150k, they have a deposit of 10% and an income of £45k. Is that likely?
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