your thoughts?

6ofus

hi, could you let me know your thoughts
at all. brother and myself have house in our names to be left to us, currently being valued but rough estimate approx. 220k I would like to buy other party out next year and own the property outright, however I have poor credit history. I have 1 year before bad debts fall off my credit records. in feb 2016 I will have paid money I owe (credit card and overdraft) off and have 30k in savings (I have this now and will not touch it) my partner has income of 30k and I earn 20k. my partner has ccj that he will not pay (it is his ex business partners debt and he refuses to finance him going on holiday on his business card.) the ccj is now 16 months old. what are our chances of getting a mortgage next year would you think?? we are now financially sound but our past does not demonstrate that. we would have 50% ltv. thanks for input - positive or negative.

Landofwood

If you have 30k in savings why not pay off your debt now?

6ofus

thanks for response and can see what you are saying but in all honesty answer is because that is my partners divorce settlement and I do not feel that it is morally correct to use his money to pay off my debts.

Landofwood

6ofus wrote: »

thanks for response and can see what you are saying but in all honesty answer is because that is my partners divorce settlement and I do not feel that it is morally correct to use his money to pay off my debts.

That's ridiculous, sorry.

It's not "financially sound" to have savings and credit card debt.

KRB2725

You say it will be 50% LTV, but you already own half the house. Are you intending to put the £30K savings into the house, therefore looking to borrow 80K (going off of the 220 valuation)?

KRB2725

If you could be debt free by Feb, why not 'borrow' the money from your partners savings, clear the debt and then replenish the savings? Seems odd to pay interest on borrowing when you have money in savings.

Thrugelmir

6ofus wrote: »

my partner has ccj that he will not pay (it is his ex business partners debt and he refuses to finance him going on holiday on his business card.) the ccj is now 16 months old.

Then your partner will suffer the consequences. Don't under estimate the seriousness of a CCJ. In the commercial world it has the same effect as showing a crucifix to a vampire.

6ofus

would like to keep 30k for safety net and put toward house to make it more likely to get a mortgage. I understand it is not good to pay interest on borrowing and have savings but in my mind if I don't touch that 30k yet then I will always have it. if I use it to pay off debts it may be possible to use credit card or overdraft again and be back where I am with less then 30k.
thrugelmir - are you saying that myself and partner with 50% interest in the house and 30k to put towards mortgage are not likely to get a mortgage under any circumstances because of his ccj - that's what I am looking to enquire about.
thanks for the responses.

amnblog

If this ccj is sizeable it will severely reduce the options for the pair of you purchasing short term.

If modest it will still stop you accessing the most competitive lenders.

Also, when a property is inherited and one party is buying out another, timing and organisation of lending is crucial.

You should consult a whole of market mortgage broker without delay.

Landofwood

6ofus wrote: »

would like to keep 30k for safety net and put toward house to make it more likely to get a mortgage. I understand it is not good to pay interest on borrowing and have savings but in my mind if I don't touch that 30k yet then I will always have it. if I use it to pay off debts it may be possible to use credit card or overdraft again and be back where I am with less then 30k.
thrugelmir - are you saying that myself and partner with 50% interest in the house and 30k to put towards mortgage are not likely to get a mortgage under any circumstances because of his ccj - that's what I am looking to enquire about.
thanks for the responses.

No, you have credit cards for safety net.

Mortgage lenders will see straight through your money management. Your dubious money management and your partner's CCJ will cause you troubles. A broker will help you.

6ofus

thanks will take your advice and see a broker.