Mortgage Application - Partners Credit

R7rok_2

Hi folks. Looking for some guidance.

Myself and partner looking to buy out first home. We almost have the deposit and meet affordability fine, problem is she has had previous credit troubles. She has a default on credit card, from a couple of years ago. She basically ended up in trouble as she gave her partner part of her salary to cover all the bills which were on his account, but he then took the money to the bookies and bills were going unpaid unbeknownst to her. Unfortunately I think I need to rule her out of an application.

I can do the app on my own income, affordability is again fine. The problem is on paper to lenders it won't be. A couple of years ago I took a loan out for my dad as he has credit issues where as I change good credit. I still live at home, the deal is I don't pay digs but instead pay the loan. Therefore if I was to move out that loan would be paid for as he would then give me the money for the loan or sell the car and clear the finance. But ofcourse the lender probably isn't interested in that.

Just looking for guidance on what to do, does it mean I am snookered for 3 years? Could rent but don't want to do so as it is dead money. ideally would have my further just take on the loan but unfortunately. I doubt he is the position to do so.

Any help is much obliged

Leon_W

The loan is yours so it will be deducted as part of the affordability calculation.


You don't go into much detail regarding your partners credit issues but it is possible to get a joint mortgage with defaulted accounts. It'll come down to how much for, why, settled or not etc etc and the size of deposit.


Have you discussed the issues with a broker ? It should be your first port of call.

Thrugelmir

Use your saved deposit to repay the loan. Will save you interest.

R7rok_2

Leon_W wrote: »

The loan is yours so it will be deducted as part of the affordability calculation.


You don't go into much detail regarding your partners credit issues but it is possible to get a joint mortgage with defaulted accounts. It'll come down to how much for, why, settled or not etc etc and the size of deposit.


Have you discussed the issues with a broker ? It should be your first port of call.

Sorry for lack of info don't have partners credit file to hand it is an unpaid card balance of around 2k to Lloyd's and is currently unsettled, looking to buy at 90%LTV.

As for paying off the loan as other poster suggested, not really wanting to do so as whilst commitment is in my name it is not my commitment and don't want to spend out joint savings on a loan that isn't ours, then we would be back to square one.

amnblog

Your partner is a non-starter with the credit issues at 90% loan to value.

Your dad needs to sell the car and repay the loan - you can then proceed on your own.