General Advice?

Silmaril

Hi All,

Here's our scenario..

Partner has a 21k gross annual income and excellent credit rating and
I have a 27k gross annual income and awful credit rating.

Partner already has a mortgage, property value around 90k and current mortgage is 45k. Not currently a buy to let mortgage but do have a tenant in there.

We have 5k in savings and climbing at 1 to 1.5k per month, both of us have minimal outgoings and our statements look good. Her history with her bank is great, mine is shocking.... but the bank in question doesn't offer buy to let anyway and so we would definitely need to switch there.

What we want to do is move the current mortgage to a new provider and free up some of the cash towards the deposit of a second house, moving this onto a Buy to Let mortgage still just in her name, with a guarantor still if required as no problems there.

The second house we want to live in ourselves, the area we are looking at we are talking about 125k property value.

We anticipate being able to raise 10k ourselves by the time we are ready to do anything and then top up as required by freeing up from the first house which would become buy to let.

In a perfect world we would like this to be a joint mortgage but my credit rating may hinder this somewhat (2 defaults dropping off soon, 1 default dropping off in a few years and 1 CCJ dropping off next october)

Is there anyone that can advise on our chances or the best approach to this situation please?

You may need more info, just not sure what so please ask away, any help or advice will be greatly appreciated!

Tia!

~SiL

ACG

Speak to a broker.

BTL would probably need to be in her name alone, BTLs and bad credit do not mix well.

Residential, because of the LTV and the age of the defaults I would imagine there will be a lender for this. Rates are unlikely to be market leading but I dont think they will be too bad.

Get all 3 credit reports down to a decent broker and I suspect there will be a way of doing this without it being too expensive.

Silmaril

Great stuff thanks... We are also in a position where if needed or it will make a big enough difference to rates we can borrow from family to increase the deposit etc so if its looking doable without this then hopefully its highly doable with this!

Now how do we go about finding a decent broker? :S

Thanks,

~SiL

ACG

Borrowing the deposit or part of isnt going to help. Most lenders will not allow this, they would usually only allow gifts.

I would avoid estate agent based brokers for a start.
Do you have friends/family who could recommend?

Silmaril

I actually just got a recommendation from a colleague at work that has had good experiences in the past so i'm going to give him a try and see where it goes, its free advice so why not!

Sorry if i was unclear, 'on paper' this would be a gift but in reality we would pay them back

Thanks,

~SiL

Thrugelmir

Silmaril wrote: »

You may need more info, just not sure what so please ask away, any help or advice will be greatly appreciated!

Tia!

~SiL

What rate of interest are you paying currently?

ACG

Silmaril wrote: »

Sorry if i was unclear, 'on paper' this would be a gift but in reality we would pay them back

You realise that is mortgage fraud?

You dont need to do that and I would advise against it. Its unlikely you would get caught but if you did you may find yourself on the naughty list and struggle to get a mortgage forever more.

Silmaril

Unsure of what interest rate she has to be honest i would have to check I've never seen the paperwork as this was something she had before our time.

We will only use the gift option if it makes enough of a difference to the situation be that the chance of success or the rates we get, and okay... we wont pay them back