Getting a mortgage with different credit ratings?

zackyv6661

Hi all,

I am wondering if anyone has been in a similar situation and can advise me?

My boyfriend and I moved into rented accommodation together in October last year. As I'm sure you know, renting is very expensive, and we would love nothing more than to have a home of our own, that we can decorate and furnish as we please. We have 2 dogs also, and to be able to find the perfect house where they have more internal space and garden space would be great!!

I have a very good credit rating, however my boyfriend has a very bad credit rating, and has debts which he (stupidly) ignored, but we are starting to make payments towards these debts too, and are looking at getting advice on his debts and arranging to pay them all off.

Do we have any hope of being able to get a mortgage in our current situation? I know that there are mortgages available for people with bad credit, but I was unsure if my credit rating would help us in this situation at all? I earn slightly more than my partner too, so again I don't know if that is all taken into consideration.

Any help/advice/experience would be greatly appreciated!

Keekles

What you earn generally affects your affordability as opposed to eligibility i.e. the amount you're looking to borrow, not how 'capable' you are of borrowing it.

If your boyfriend's credit is 'very bad' because of his debt:income ratio, then it's likely that he would be fine to obtain a mortgage, albeit a small one when considering his outstanding debts.

If it's bad because he's got registered late payments / defaults / CCJs, then you will only determine his eligibility on the basis of a full fact find, inclusive of his credit files.

It's also worthy to note that if you are planning on working out plans to pay the debts off, if entering into a payment plan or similar; this will certainly limit his options of available lenders far more than having some element of debts.

Best advice is to engage a broker as you may find it more beneficial than approaching the mortgage market yourselves.

amnblog

'Ignored debts' reads as unpaid items, defaults, and possibly County Court judgements and debt management plans.


This definitely affects your ability to borrow. Whether there are immediate options will depend on your deposit size and other factors.


The smart move is to have your partner sort out his finances and get on an even keel before you buy together.