Options after failed application

Rich76

Hi all I would really like some advice if anyone has any to offer. Here is our current situation:


We live in a house valued at £160,000 (valued 5 years ago)


We took out a £93,000 mortgage 5 years ago on this house.


We currently have a mortgage of £69,000.


Due to a troublesome time, my partner managed to run up a debt of £17,000. I myself have general debt of £5,000.


We decided to re-mortgage to consolidate the debt and pretty much take us back to where we were 5 years ago.

My partner did a credit check on herself 18 months ago when she first told me about the debt. It was good. Mines was and is excellent.


Our current mortgage deal ran out last year so I shopped around. The best deal I found was from another bank. I confirmed they would leave a soft footprint on our reports. We asked for the £93,000 over 25 years with the intention to clear the debt. Our combined wage is £48,000. We were refused due to a fail on credit score. Checked my partners score and it was 'poor'. Really don't know what to do. I am less than experienced with these matters and don't know where the best place to get advice is so thought I would ask here.


My partners debt payments are making day to day living extremely hard. What options do we have here other than selling up or taking out a separate loan? Would a mortgage advisor help? Or an IFA? I've never used either.


I have thought about removing my partners name from the mortgage and taking it out myself. The basic calculators say my earnings and outgoings would be enough for that kind of money but I'm not sure. I am reluctant to go to anymore banks at present due to the impact it might have on my report.


If there is any advice anyone can offer I would be amazingly grateful. Totally out of my depth here.


Richard

amnblog

You should consult an independent mortgage broker who will manage this for you properly.

kingstreet

Obtain all three versions of your parter's credit files before consulting an independent broker so they will be able to see exactly what is wrong.

Yes, they can all be different as different lenders give and take information from different credit reference agencies;-

Equifax

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

CallCredit

https://www.noddle.co.uk

Experian

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

The statutory files are fine. Do not pay for services which allege to provide your credit score as you don't have one!

Malmo

Rich76 wrote: »

Would a mortgage advisor help? Or an IFA? I've never used either.

You would be advised to see an independent, whole-of-market mortgage broker.

As a next step, start a local broker search with unbiased.co.uk.
On the home page, next to the search box, select Mortgage Adviser and enter your postcode and hit search.
When the search results are displayed, in the filters on the left hand side, un-tick the Only show sponsored results box and under the heading Adviser Restrictions, you could also tick the box for Mortgage Broker (Whole of Market). This should give you a list of potential brokers to contact.

It's also advisable to ask for recommendations from anyone you know, who may have used a good local broker.

Also obtain your statutory credit report from each of the 3 credit reference agencies, which costs £2 (see links below). You do not need their scores or subscription services. Put these reports in the hands of the broker, so that they have a complete picture of your credit history.

Experian Statutory Report

Equifax Statutory Report

Callcredit Statutory Report

Rich76

Thanks for the replies. We will check all three credit reports this weekend. I'm sure in time, her report will improve but until then things will be very difficult.


Are there any places on the net where I'm likely to find recommended independent mortgage brokers in my area (Fife, Scotland)?


Edit: Just noticed your great reply Malmo Thanks for that.