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mortgage after repossession!!

Hi everyone
I'm looking into a mortgage via the 'help to buy' scheme but I'm borderline on the total amount to borrow therefore I would like to include my partner to increase the borrowing amount.
This is where the problems start....She had a house repossessed in June 2012 and was left with arrears of £21500. She as recently agreed to a settlement with the bank of £5000 as 'a final payment for your personal liability' and the bank will take no further action against her but will pursue the other party on the account.

Therefore my question is do we stand any chance with a mortgage application now or would we be better waiting longer before a joint application is made?

Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    From a business perspective so nothing personal. But someone who has recently defaulted on £16,500 is unlikely to be attractive to a lender. Would you lend yet another £10 to a friend who never pays you back.
  • webcop
    webcop Posts: 10 Forumite
    Part of the Furniture First Post Combo Breaker
    Thanks for the reply....so any idea how long before we could apply jointly based on the fact MY credit history is good or will it never he possible?
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    webcop wrote: »
    Thanks for the reply....so any idea how long before we could apply jointly based on the fact MY credit history is good or will it never he possible?

    Time will heal. Though you may be looking at years not months. Partial settlement has it's pros and cons. Debt is cleared but credit rating takes a mauling. Building a good deposit is one way of making life easier.
  • You might be into the next decade before this idea has wheels.

    Sorry.
  • Wh05apk
    Wh05apk Posts: 2,938 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Realistically you have no chance at 95% with a recent repossession, avoid doing any joint applications as that will then financially link you.


    When you say borderline, does it matter? what side of the "border" are you, have you checked to see if another lender would lend you more?
    I am a mortgage adviser.
    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.
  • Personally, I would accept that currently you cannot afford a property at that value.

    In your shoes, I would be building up my deposit, whilst looking elsewhere at cheaper properties. :)
    "Getting Married" - The act of betting half of everything you own on the fact you will love someone forever :rotfl:
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