Transfer of equity and settlement of debts

Spring2727

I would like to remove an x-partner from the mortgage. Of which he is fine with. I currently have 4 defaults on my credit report. 3 are nearly 5 yrs old and 1 is 4 yrs old. I missed 3 payments on the mortgage 18 months ago. As of April 2013 my mortgage has been up to date and payments regular.

I meet the basic criteria 80% loan to value ( I require 70%) and no arrears in last year. However they will also access me on ability to pay and credit report. I have enough money to pay a part settlement on all debts to clear them or I can pay off one or two.

Or should I continue as now until they have dropped off the report in 18 months time?

ethank

Do you meet the income requirements?

Thrugelmir

Spring2727 wrote: »

I missed 3 payments on the mortgage 18 months ago.

Doesn't look good on a mortgage application.

When were the defaults settled?

Spring2727

I haven't been told of income requirements? My employed income is probably not enough but my partner stays here roughly 3 nights a week and contributes a substantial amount.

Defaults not settled .. As I mentioned they will drop off my report in 18 months.. I can settled one .. Possibly two or settle all of them with their part payment settlement offers.

kingstreet

Contribution from someone not named on the mortgage/property is ignored, so the lender will assess affordability based on your income and outgoings and your credit history alone.

Speak to your lender and see if they think they are likely to remove your former partner. I suspect they won't as reducing potential "payers" from two to one would mean increased risk to them.

Foxy-Stoat_3

How many times does your salary go into your mortgage debt?

Thrugelmir

Spring2727 wrote: »

Defaults not settled .. As I mentioned they will drop off my report in 18 months..

Or you could receive CCJ's for the debts in that time frame.