Shared Ownership - Advice please

BobSam

katejo wrote: »

When I bought my first place, my salary was around 14K. I had a mortgage for 36K. That was perfectly manageable but I would not have been able to afford rent on an additional 30K or so.

Although the mortgage/rent will be in my name, there is my husband as well. I completely understand that from the bank's point of view this can't be considered but the reality is that he'll be paying half of everything and we've worked it all out that we'll still be paying less than we do on the rent now.

kingstreet

BobSam wrote: »

my husband has a horrendous credit history

Can you set out EXACTLY what is visible on all three of his credit files;-

late payments
missed payments
defaults
court judgments
IVA/Bankruptcy?

BobSam

kingstreet wrote: »

Can you set out EXACTLY what is visible on all three of his credit files;-

late payments
missed payments
defaults
court judgments
IVA/Bankruptcy?

We haven't checked his credit file as everytime I've mentioned his CCJ they've all said "don't bother"! He has a CCJ, stopped paying a loan and overdraft, car finance. He is paying towards the car finance and the loan. TBH he lost his mum and had a bit of a breakdown and stopped paying everything. Unfortunately we weren't together at the time and he had no real support to help him look after himself and his finances. Also owes council tax (not with me or on our current property) but I believe that doesn't show on your credit file?

kingstreet

Non-payment of council tax is treated as "criminal" and is dealt with by Magistrates' Court, not County Court.

How can anyone properly advise on what's possible if they do not have the complete picture of your/his credit history?

Here is one lender's criteria on adverse credit:-

Adverse credit history

County Court Judgements (CCJs/defaults)

Adverse credit as detailed below must be declined:

Any unsatisfied CCJ
and/or
More than 1 satisfied CCJ and the latest is within the past 3 years
and/or
Satisfied CCJs totalling more than £200 and the latest is within the past 3 years
and/or
More than 3 outstanding and/or satisfied defaults and the latest is within the past 3 years
and/or
Outstanding and/or satisfied defaults totalling more than £200 and the latest is within the past 3 years

Applications can be considered where the above is identified but only where documentary evidence of a settled dispute has been provided by the customer.

Bankruptcy/Debt Relief Orders/IVAs

Lending to a customer with a history of bankruptcy, or someone who has been the subject of a Debt Relief Order (DRO) or an Individual Voluntary Arrangement (IVA) can be considered.

However, this is only as long as the customer has been discharged for at least 6 years at the date of submission of any mortgage application and the bankruptcy, DRO or IVA no longer shows on the credit reference bureau information.

Payment arrears/missed payments

Any adverse credit identified, as detailed below, must be declined

Cumulative amount of arrears at any point in the past 2 years of 3 or more monthly payments on any one account

Applications can be considered where the adverse appears to be inconsistent or out of character when compared to other Credit

Account Information Sharing (CAIS) records or where documentary evidence of a settled dispute has been provided by the customer.

Mortgage or Rent Arrears

If arrears of more than 1 month have occurred in the past 6 months, and/or 3 months arrears have occurred in the past 2 years, the case is outside lending policy and is to be declined. However, this decision could be changed if there is an acceptable 'technical' reason, or if evidence of a settled dispute is provided and verified by the lender.

I'm not saying your partner will fit such a criteria, but I would want all three credit files to take a decent run-up to see if there's anything I can do. Often, the information on each credit file is different and often, a lender will use only one, so something not visible on one version may result in you satisfying one lender's criteria when you totally fail another's.

BobSam

I would definitely say that my husband falls firmly in the adverse credit section. Seems pointless to do a credit check IMHO.

kingstreet

Obtaining his credit files from the CRAs does not involve a "credit check" and it will also show any financial associations with you which may reduce your chances.

You can obtain the £2 statutory files here;-

Equifax

https://www.econsumer.equifax.co.uk/consumer/uk/order.ehtml?prod_cd=UKSCR

Experian

http://www.experian.co.uk/consumer/statutory-report.html#orderReport

CallCredit

https://www.callcredit.co.uk/stat-report-online/index.php?action=basket_add&tpl=setRegister&package=63&amount=1&mode=clear

DO NOT sign up for subscription schemes which claim to tell you your credit score. They are indicative at best, misleading at worst.