Joint mortgage with late payments!!!!!!!

p1212

Hi,

We want to apply for a mortgage with my girlfriend. I have perfect credit history (max score on experian and equifax) with no late payments and I have very long permanent employment with an 57K income.

She has 12K self-employed income and had some late payments on two credit card accounts. One of her accounts had a lot of status 1 late payments (8-10), that account was paid in full and settled in 2012, her other account has two periods of late payments one in 2010, the other in 2011, both went to status 4 and this one also had some sporadic status 1 late payments. This account was also paid and settled in full in 2012, everything else is perfect. We don't have any other loans, debts.

We want to move early next year, we are looking to get a house around 300K and we have 20% deposit (though we might be able to raise 25% if we save very hard in the next months). We are first time buyers.

We are slightly worried that her credit file can cause problems, can these late payments somehow cause problems?

Should we wait for having 25% deposit?

Any ideas how should we go on?

p1212

Anybody any ideas?

Sixteen status 1 late payments on two accounts, and two status 4 late payments on one account, all from 2010 and 2011, everything else is perfect since then, no defaults, no CCJ-s!

Any ideas about whether we can get the mortgage we want (300K with 20% deposit) with these late payments on her account?

Any help is appreciated!!

ChopperST

Best way is to speak to a whole of the market broker.

A couple of late payments shouldn't cause too many problems, defaults would be far worse. But you would be better speaking to a whole of the market advisor.

Thrugelmir

Status 4 = over 4 months overdue.

When where these registered on the file?

p1212

Thrugelmir wrote: »

Status 4 = over 4 months overdue.

When where these registered on the file?

Yes these were 4 months late payments, they gradually went through status 1-2-3 and reached status 4 on 2010 September and 2011 September, but then she paid them in, so her account jumped straight back to green on both ocassions. Then they were paid in full and settled in 2012.

And also there are these status 1 late payments, this all clearly shows a long period where she could not keep up with the payments - that's why we are worried, as it's clearly not a messed up direct debit, or a forgotten credit card payment, it looks like a financial problem over one and a half year.

Dave_Ham

I fancy this should be achievable, but lender selection is critical.

Get the reports to an experienced broker..

All the best

kingstreet

Is it a line of 111111111111s, or is it 0010100010000100 etc?

The former suggests a single missed payment which wasn't caught up, leaving the account a month in arrears at all times. The latter is a string of late payments, made up the month after.

Just get all three versions of her credit file and put them in front of a good whole market broker and see what they can suggest.

p1212

kingstreet wrote: »

Is it a line of 111111111111s, or is it 0010100010000100 etc?

The former suggests a single missed payment which wasn't caught up, leaving the account a month in arrears at all times. The latter is a string of late payments, made up the month after.

We have equifax and experian and unfortunately both shows this pattern :

One credit account:
1001012340010011012340001000000 then Settled.

The Other credit account:
0100110010100110001010000000100 then Settled.

p1212

Dave_Ham wrote: »

I fancy this should be achievable, but lender selection is critical.

Thats what I also thought, it might be possible at some lenders.

The question is that I could also potentially apply for the mortgage alone with our deposit, but if we try it first together and then we get declined, we will be financially linked (we are not linked now), will get the credit check entry on our credit history -> decreasing the chance of me getting the mortgage alone.

So I am just trying to figure out how to approach this all, is it too risky to apply for a mortgage together with her history or should we choose the safe way and I should go for the mortgage alone and then later, when we get the house, we can still try to remortgage together with her.

As we really need a house next year, we don't want to get into a situation, where it will be impossible to buy anything due to messing up my credit history previously.


What do you guys think?

p1212

A little update, we went into halifax to get an AIP, the mortgage advisor there did a check on me, gave the printed AIP, then she said she could do a fast "check" on my girlfriend too if we wanted. I said no, cause I thought then we could get financially connected, what we don't want yet.

She told us we won't get financially connected, and it's just a fast check, so we thought it might be a good idea to know if in theory she would be accepted or not with all her late payments etc...

Before going on, I asked her at least 3 times about this, if she is really 100% sure we won't get connected and it will be a separated check from my application etc..., she said it is 100% sure we won't get connected. I trusted her, so she went on.

Then she gave us another AIP in both our names, at that point I started to feel slightly bad, but she again said we won't be connected. Then she again gave me another AIP in my sole name, so I have now three AIP's. The reference number is the same on all three AIPs.

The only problem is, that I have checked my credit report today and now I see, that we are connected, the date is the AIP's date (yesterday), so she messed this all up.

Any idea how can we remove this association? Do I have to wait while the joint AIP offer expires then should I write to credit reporting agencies? Can those late payments on her credit report affect a mortgage application in my sole name?

mollyjester

I used to underwrite mortgages and although the missed payments would be a concern I can't see the issue with the missed payments as the account was settled some time ago and it appears more a blip than a sign of struggle. The bonus is that you are the main earner by a long shot and you have a good LTV. If you go for around 75% its consider a lower risk anyway. If I were looking at it I would probably underwrite it on your sole income and just have your girlfriend named on the mortgage as an additional party for recovery interest.

In terms of separating a financial link you would have to go to experian etc and separate that way but its a faff and not something that always works. As a rule of thumb any credit search with another party will always cause a link. If you are buying a house together anyway it shouldn't matter as the mortgage will link you anyway and that can't be removed but if you separated you could ask for a notice to be placed on your credit file. You could try raising a complaint to Halifax about what the adviser did but they would only be able to cover any financial loss and wouldn't be able to remove the link for you.