Mortgage - Possible ?

David19821982

Good evening all ... my first post here so please be gentle !

My girlfriend and I are looking at 'purchasing' a shared ownership property.

The reason for this decision is I understand that my poor credit history is restrictive and we have the intention of staircasing over the years to come as my financial situation improves.

Me:

Salary £20000

Credit History:

I have 3 defaults from February 2012 (2x MBNA, 1x Santander)
I have 1 open credit card with a balance is paid in full every month and have never missed a payment on, this account has been open for 6+ years.

I currently have no monthly outgoings other than my phone at £10 per month.

My credit score for the record (which I know is an idication at best) is 971.

My partner has a perfect history with no missed or late payments, her salary is £13500

My partner has outgoings of £160 (car) and £7.50 (phone).

We have approx £11000 deposit.

There are 2 properties which are of interest, one would require a mortgage of £40000 for a 25% share and the other £26500 again for a 25% share

Would either of these be possible?
Would we be better just trying to get the property in her name?

Any questions then please feel free to ask

kingstreet

Your inclusion in the purchase/mortgage is unlikely with adverse credit less than three years old. On which versions of your credit file do the defaults show?

If you don't have all three, get them.Then take them to a meeting with an independent broker.

Your partner buying alone would be the next option, but on £13,500 with the outgoings she will have to carry, £160 car credit and the shared ownership rent, ground rent and service charges I suspect the amount she will be able to borrow will be too small.

You need to get a broker involved to work out when a joint purchase will be feasible. That will depend on the three credit files and which is going to do you the least damage.

David19821982

The defaults dont appear on the Equifax report.

Ive spoken to the developer and there would be no ground rent or service charge. Just a rental on the shared part, which is relativly low, 30% less than the market value would be.

Are there any lenders who only consider the Equifax file?

Kristina80

I think Natwest and RBS only use Equifax. When Natwest did a soft search it only showed on our Equifax file. If you use a broker he should be able to confirm for definite though.

kingstreet

NatWest doesn't lend on shared ownership.

Seek advice from an independent broker.