How will my self employed, poor credit status affect a joint mortgage application?

artrfc

Hi, thanks in advance for any advice. I'll try to explain our current situation as best I can.

My partner and I are looking to buy a house together. I have been self employed since I graduated from university (3~ years), my earnings have gone up and down in the last couple years but remained firmly under about £8k/year.

I haven't been working much at all for the last 6 months as we've moved to Scotland for my partner's new job. He was previously in the middle east earning around £75k untaxed, allowing me to work part-time self employed. He now earns around £35k including overtime and bonuses, however technically he's still in his 6 month probation period. He does have in writing that his job is permanent.

We're living in a house he owns with no mortgage, about 90mins from Edinburgh. We ideally want to be within 45mins of the city & South of the bridge for better transport links. We're living in this house to sell it and avoid renting in Edinburgh.

The house is valued at £145k. We have £40k in savings, with the potential to add around £15k to that if need be. Partner has been estimated he can achieve a £140k mortgage. He has no outstanding debt, credit cards or loans. He's in his late 30s.

We are looking to spend anywhere between £180k-£280k on a house. Of course, the lower end of that scale means we wouldn't require a mortgage, however, our preferred size & location house is going to be closer to the top of that range.

Regarding my finances; I don't know if I have poor credit as I've never done a credit check, but I imagine I will have. I missed multiple credit card and phone bill payments in uni, and often went over my overdraft limit. Over the past 12 months I've fixed all those and all that's left is my student loan, which of course isn't payable yet due to my low income.

My question is, should we apply for a joint mortgage, or would we be better letting my partner take this one alone? Emotionally it makes no difference to me. I just want to ensure we can get the right mortgage, and I don't want to hinder his good credit rating.

If it makes any difference, we're engaged and planning to get married in the next 2 years.

We have a mortgage advisor and we're going to see him again on monday, but I'd be interested to know anyone else's perspective.

Thanks

Leon_W

Don't bury your head in the sand, get your credit report !


How can anybody give you any sensible advice if you yourself don't know what position you are in. Straight after reading this go here....


www.noddle.co.uk


It's free. Sign up online. You'll need a debit card for verification but it doesn't get charged. It's legit.


Once signed in there is a link to print your report. For gods sake PRESS IT !


How the hell your mortgage advisor can be giving you advice without a credit report is beyond me.

artrfc

I just tried that site, it didn't work unfortunately:

"We’re sorry but unfortunately we’re not able to provide you with access to your credit report as we’ve not been able to automatically verify and validate your identity. As your credit report contains such personal and important financial information we need to make sure that we only make it available to the right person.

We're unable to tell you the exact reason that we couldn’t verify your identity but some of the most common reasons are a recent house move or name change, not being on the Electoral Roll or that the credit card details provided couldn’t be verified, this could be due to the card being relatively new."

I haven't been at this address long and have just had a new debit card issued last month.

*I really hadn't got a credit check done as I wasn't sure of the safest way to do it. It hasn't been a necessity until quite recently. Thanks anyway

kingstreet

Obtaining your credit files from the CRAs is no-risk as no record is left which is visible to lenders;-

Equifax

https://www.econsumer.equifax.co.uk/consumer/uk/order.ehtml?prod_cd=UKSCR

CallCredit

https://www.callcredit.co.uk/stat-report-online/index.php?action=basket_add&tpl=setRegister&package=63&amount=1&mode=clear

Experian

http://www.experian.co.uk/consumer/statutory-report.html#orderReport

These are the £2 statutory reports and they are all you need. Each one can contain different data so don't assume they will all be the same.

Leon_W

It really is the starting point for mortgage applications these days, and as kingstreet says, for a belt and braces approach, get all three.


Did your mortgage advisor not ask for them ? If not then I think that's appalling.

artrfc

Well we've only been for one consultation and that was really to ask whether my partner would be considered for a mortgage with him still being on probation, and some other general queries about buying around Edinburgh. Independent mortgage advice is free in Scotland I believe so we figured we had nothing to lose by asking.

I suppose he'll go into more detail if we're actually applying for a mortgage.

artrfc

Well I've had no luck with the sites suggested. I appreciate the advice though. They're all saying unable to verify your information etc. I wonder if it's because of my recent change of address. I've not long been registered on the electoral roll too (just after christmas). Maybe I'll need to wait a while and try again.

Leon_W

No, you don't have to wait.


You just have to do it by post. I'll be honest with you, it sounds like you are looking for reasons NOT to get your report hence my earlier reference to head burying.

kingstreet

In which case, print off the forms and post them with a cheque or postal order for £2.

Try this;-

https://www.econsumer.equifax.co.uk/consumer/uk/gb_consumerletter.ehtml

or this;-

http://www.equifax.co.uk/efx_pdf/CreditReportApplicationForm.pdf

and;-

https://secure.wiseconsumer.uk.experian.com/wiseconsumer/secure_index.html?data=00

or

http://www.experian.co.uk/downloads/consumer/Stat-App-Form.pdf

artrfc

Thanks kingstreet, I appreciate the advice, will give that a go.

Leon W - Why would I be on here asking for advice if I wanted to bury my head in the sand? I'm more than happy to do anything required, what makes you think I'm making excuses when I'm here asking about my financial future? I tried the websites and they didn't work, did I say I give up? Not everyone has their !!!! together ok, so give me a break.

artrfc

Christ, I'm never asking for help on here again