Joint Mortgage Application and a default

PoorPonyMom

Hey everyone, after some advice.

My partner is selling his flat and buying a house. I still love with my parents. Plan is once he has house I would move in with him.

He has a large deposit from the fat (£117k) and had got an agreement in principle for £166k for the mortgage. However in the last few days the rules changed and they can't take into account so much of his commission/overtime and so this has dropped to £127k and means the place he has had an accepted offer on won't be able to go ahead

We are thinking of doing a joint application. We are not married, both work so that's not a problem. I had some financial difficulties about 5-6 years ago and had to take out a debt management plan (not an IVA) through step change. I finished it 2 years ago, everything is paid off, I have one default left on my credit history registered 2010 showing as satisfied in 2013 as I paid it off. Is this going to stop me getting accepted? I have other credit running smoothly on my account since (but only bank accounts, mobile phone Bill etc no loans!)

Thanks in advance

betmunch

you should be able to get a joint mortgage but may struggle with highstreet rates.

I dont recall any emails about a lender changing their rules on commission (but may have missed something as so busy)

I would suspect changing lender but buying on his own still would be best.

Get a broker on the case

Good luck

kingstreet

Me neither.

I suspect someone made a mistake and is now trying to suggest a rule change for their error...

betmunch

kingstreet wrote: »

Me neither.

I suspect someone made a mistake and is now trying to suggest a rule change for their error...

Wonder if this was a direct application? Or via a broker then?

If it was a broker they should have had a solution to the problem lined up already.

kingstreet

I think you and I would!

PoorPonyMom

Thanks for the help so far.

It's a direct mortgage through Barclays, they already have his current mortgage, although this is an application for a new one.

I'm hoping it will be ok and I'll be accepted otherwise that's our dream over until the default goes

Sparkl

Just a thought- if he was making an application in his sole name, has it been disclosed that you would be living there also; as it's highly likely they would count you as a dependent if you are not contributing to the mortgage (although some lenders won't if you can prove financial independence) and would therefore reduce the affordability.

As suggested you would be best going to a mortgage broker, they can source the most suitable mortgage for you. It would be a good idea to take your credit report with you.

betmunch

Sounds to me like staff error on the original question of how much can be borrowed.

You can never be 100% sure direct criteria matches intermediary criteria, but I am unaware of any changes to their rules on commission and bonus payments.

Do you have to stick with Woolwich though? Even if theres a penalty to leave them it may be worth paying to get the dream home. Only you and he can say if its worth it though.

Good luck

PoorPonyMom

Thank you again - we are going to wait and see what they say tomorrow and if it's a no go then approach a broker.

The plan was once I moved in I would contribute to the mortgage, at present I am totally financially independent.

Interesting that nothing seems to have changed recently, it was only 2 weeks ago they were saying no problem to £160k and now they drop this bombshell.

betmunch

That's why it looks like a staff error to me.


Unfortunately if you are not named on the mortgage no lender will consider your income for the purposes of generating a maximum loan amount.

Thrugelmir

PoorPonyMom wrote: »

Interesting that nothing seems to have changed recently, it was only 2 weeks ago they were saying no problem to £160k and now they drop this bombshell.

An AIP is not a mortgage offer.