Fear of applying for mortgage.

jm2013

So here is a bit of background.

Me- Good credit, have 12 months left of a small loan, car finance which has 4 years left and I lease a computer. Small limit credit card with my bank of 25 years.

Husband - Poor Credit, defaulted on a few things about 3 years ago as a result of losing his job. Now all paid off in full. Only one thing left to pay which is paid monthly and little left on it. Haven't actually checked credit in almost a year so not sure if it has improved.

Combined NET income of 35k pa.

We have found this company that offer 50% shared equity on new builds which we are looking into, and they have a deal with a leading mortgage broker to enable us to get a mortgage minis a deposit and fee.

We are only looking at a mortgage between 45k and 68k, depending on whether we go for a house or apartment and what area.

I'm just so scared of being refused and being made to feel awful and embarrassed. And also if they do a credit check and it is denied then that will impact my credit too.

Any advice would be greatly appreciated.

ACG

How much is your deposit?

jm2013

We don't need a deposit. With this company we are going through we do not need to pay a deposit or a fee. Just legal fees and surveys.

HappyMJ

What's the interest rate and the conditions on paying back the shared equity? Without a deposit it usually works out much more expensive than renting.

jm2013

It is 140pm for the rent on the part that isn't owned. We also get the opportunity to purchase more equity after 12 months (staircasing).
So the rent is pretty low, works out approx 400pm for mortgage and rent.

jm2013

Would we be rejected if we applied? I don't know what to do.

pukkamum

I felt exactly the same as you when we applied for our mortgage, i was so worried about the embarrassment of failing the credit check having had problems in the past.
I actually made myself sick with worry.
When we got our AIP i almost punched the air whilst crying BOOM!
We are still waiting to hear and i'm still anxious but nowhere near as anxious as i was about passing the credit check.
Check your report with one or both of the major credit control companies, ignore the score it means nothing, use it to check for any missing payments etc.
Good luck!

-taff

Any defaults will stay on his file for 6 years from the date of default but may show as satisfied - ask on the debt free/credit report boards for more info about that.

Can you get a mortgage in your name only?