Mortgage Affordability??

Noodes

Me and my boyfriend have managed to save 10k for a deposit on a house. On exploring credit ratings, mine is fine but he has

• 1x settled default (around 2 1/2 years ago, £700
• 1x outstanding default (around 2 1/2 years ago, £190)
• 1x settled pay day loan (around 3 years ago)
• 2 late catalogue payments within the last year

With the above, we sense a joint mortgage application would be turned down.

I earn around 20k per annum but I have a new car on finance, in my name only, at 0% interest with around 10k left to pay. Would this affect a mortgage application if I applied solely on my own with a 10k deposit. We are currently living at my mothers house and really don't want to go back into rented!

Any advice/help would be great!

kingstreet

What are the actual dates the defaults were registered and what is the monthly payment for the car finance?

TBH the answer to this is almost certainly going to be to consult a whole market broker, so start asking friends and relatives for a recommendation and ensure you have all three versions of both your credit files before you see them.

With a £20k salary and say £200 a month credit commitment, you're going to be able to borrow about £70k, leaving you with a purchase price of £80,000.

I suggest you fully explore the joint options fully, before you discount this route. You may have to raise a 15% deposit as a consequence though.

Noodes

The monthly payment is £209.

The dates of the defaults will be July 2011.

I thought with having an outstanding default and a pay day loan, you would be turned down straightaway?

TBagpuss

Why has he not settled the £190 default?

kingstreet

Noodes wrote: »

The monthly payment is £209.

The dates of the defaults will be July 2011.

I thought with having an outstanding default and a pay day loan, you would be turned down straightaway?

You aren't going to get a 90% mortgage, hence my suggestion that you may find an option at 85% with a whole market broker.

Only one lender automatically declines for recent payday loan use and that's last twelve months only.

Noodes

He will but I'm just stating current/worse record.

The smaller default is linked to the bigger default (Long story but its a utilities bill from when we moved house) the large one was paid (we assumed it was gas and electric) turns out the electric was not covered and we didn't realise until now.

Noodes

Thanks Kingstreet, I thought with such a bad history, it would take years before he could do anything! Will definitely look into it more