Joint application with partner bankrupt

hardguy007

Hi. My bankruptcy ends in October this year. If me and my partner wanted to buy a house would me named on it decrease our chances or would it be better for her to do a single application? She earns approx £26k and myself around £17.5k (I only work average 3 days per week - would be £26k if I was full time). Way I see it that although I was bankrupt I can still contribute to the mortgage. Or could she make single application and state my wages as extra income?

ACG

How much deposit do you have?

If you are waiting until you have been discharged then i think you are going to struggle unless you have a sizeable deposit.

You cant take your income into account if you are not going on the mortgage - in the same way you cant take my income into account.

I think its probably going to be easier to do in your partners name only, but the deposit would need to be hers and hers alone. Unless you have a 30-40% deposit.

hardguy007

Purchase price around £70k - £80k and deposit maximum £7k

ACG

Are you financially associated with your partner?
If you are, you may struggle to get it to pass credit score at 90% LTV.

Im not sure on this, before submitting anything i think you need to be speaking to the lenders or consult a broker.

Leon_W

As ACG says, be wary of associations.I've had a couple of cases go wrong because of financial associations.


If you are associated in any way then lenders DO look at the other person. I had a case declined because my client was a guarantor on a loan for her son who had taken a payday loan (£300). So my client was perfectly clean, but turned down because of the association.

hardguy007

No, we're not financially associated in any way. She does have a £7k car loan and £10k loan(£8k left) we got for furnishings for the house were in at the min

watermelon900

Sorry to jump in - what do you mean by "the deposit must be hers and hers alone"?

Thrugelmir

watermelon900 wrote: »

Sorry to jump in - what do you mean by "the deposit must be hers and hers alone"?

In simple terms, a lender will be uncomfortable with a third party contributing to the deposit, living in the property but not named on the mortgage. In certain circumstances all sorts of difficulties and issues could arise. Which would result in a messy situation. Hence lenders wishing to avoid such conflicts.