Bad credit and multiple people

amygeorge

Hello, my mum is selling our home which has been valued at £140,000.00. We are looking to buy somewhere for £300,000.00 with my partner as well. He has a terrible credit rating which includes a default. We have been making an effort to improve this and show he can pay bills ect. I have two missed credit card payments which is bad and my mums is perfect. Between us we earn £58,000.00 per year and at least £6,000.00 in overtime and bonuses. But I am also self-employed which is another knock against us. We are looking to put down between £100,000.00 and £120,000.00 as a deposit. Does anyone have any ideas where we could look for to find a mortgage? My partner is saying it will be better if he was not down on it as my missed payments are explainable, his defaults and bad ratings were all in 2012 plus one missed payment this year. The problem we will then have is his salary is £16,000 + £4,000.00 in overtime and bonuses.

ACG

Find a decent broker.
Default(s),
Late payments,
3 applicants,
Presumably mums age,
Self employed...

This is not a straight forward case, you may find high street rates are achievable but there is a lot to overcome and you need to sit down with someone who is in a position to go through everything in detail, speak to lenders etc.

amygeorge

I am going to arrange to talk to AMS. We are just hoping it isn't totally hopeless. My mum's age is only 42 so I wouldn't think it would be too much of an issue as retirement age for her is 65. Thank you for your help

Conrad

There are various ways of approaching this, what is the joint income of yourself and Mum?


Mr will have no chance of being accepted, he wont pass the responsible lending test.

amygeorge

Our joint income is £40,000.00 plus my overtime of £2,000.00. However, I have just spoken with AMS and as I have only been self-employed for four months, even if the earnings are consistent and improving, my salary won't count until I have been self-employed for a year. They may still be able to help as they work with people with bad credit but it means losing a big chunk of our available mortgage amount. I think we will have to just play out this year and try and improve his ratings in the mean time. Thank you all for your help, feeling slightly bummed out but at least we know what we are aiming for.

ACG

Conrad...How have you come to the conclusion he has no chance of being accepted?
I have just obtained a mortgage for a client 3 years out of bankruptcy at under 3%. I have many MANY clients (as my target market is adverse) who have defaults at LTVs of up to 95%..

I would not go as far as to say he will be accepted but likewise unless you know more than this thread suggests I would not say he has no chance.

amygeorge

It's not easy with bad credit but from all the research we have done it just seems that, with the right business, we need a larger deposit which ours would be and we will also pay a higher rate which we have accepted. I didn't think being self-employed would be our biggest issue at all.