Joint mortgage, partner poor credit

MNM2903

Hi

just looking for a bit of advice. Me and my partner moved back to my parents in January. We have been saving for a deposit to buy a house. We have 4k so far and are looking to have around 10k+ by the time we move out around january next year. We would have more however we used what other money we could have saved clearing some small debts.

She earns 22.3k at the moment and is a midwife but by the time we buy she will have went up to a band 6 which will happen in the next few months making her wage around 25k

My wage is 17.6k but i earn bonus with a gauranteed bonus of 30% of my annual wage, so in theory around 22k.

Her credit is excellent never missed a payment and up to date with everything. She does have 2 loans total of 10.8k for the balance of those loans. We are going to consolidate these tomorrow in to one to reduce monthly outgoings.

My credit is terrible and is as follows

Default Date Satisfied date
Portfolio recovery 22/09/2011 May-14
Lending Stream 22/09/2012 Oct-12
Capquest Ltd 31/10/2012 Mar-15
All in one finance 09/03/2013 Payment arrangement
Instant Loans 01/04/2013 Feb-15
Halifax 06/02/2014 Jun-14

CCJ 12/03/2014 May-14

I have no debt apart from the arrangement with all in one finance. I havent paid it off as it was for car warranty from carcraft who are no longer operating and im waiting to hear the outcome on where we stand in terms of the warranty.

Anyway as a join mortgage and combined wages it opens us up to much nicer houses which would be great. What im wondering is if anyone knows the chances of this being a realistic option if we do a joint application. And also if using both seems out of the question which i think it probably is then how much can we expect to get with just her wage and using the government equity loan aswell for a new build property?

Sorry for the long post and if youve made it this far thanks for reading and thanks in advance for any help.

DandelionPatrol

MNM2903 wrote: »

Hi

just looking for a bit of advice. Me and my partner moved back to my parents in January. We have been saving for a deposit to buy a house. We have 4k so far and are looking to have around 10k+ by the time we move out around january next year. We would have more however we used what other money we could have saved clearing some small debts.

She earns 22.3k at the moment and is a midwife but by the time we buy she will have went up to a band 6 which will happen in the next few months making her wage around 25k

My wage is 17.6k but i earn bonus with a gauranteed bonus of 30% of my annual wage, so in theory around 22k.

Her credit is excellent never missed a payment and up to date with everything. She does have 2 loans total of 10.8k for the balance of those loans. We are going to consolidate these tomorrow in to one to reduce monthly outgoings.

My credit is terrible and is as follows

Default Date Satisfied date
Portfolio recovery 22/09/2011 May-14
Lending Stream 22/09/2012 Oct-12
Capquest Ltd 31/10/2012 Mar-15
All in one finance 09/03/2013 Payment arrangement
Instant Loans 01/04/2013 Feb-15
Halifax 06/02/2014 Jun-14

CCJ 12/03/2014 May-14

I have no debt apart from the arrangement with all in one finance. I havent paid it off as it was for car warranty from carcraft who are no longer operating and im waiting to hear the outcome on where we stand in terms of the warranty.

Anyway as a join mortgage and combined wages it opens us up to much nicer houses which would be great. What im wondering is if anyone knows the chances of this being a realistic option if we do a joint application. And also if using both seems out of the question which i think it probably is then how much can we expect to get with just her wage and using the government equity loan aswell for a new build property?

Sorry for the long post and if youve made it this far thanks for reading and thanks in advance for any help.

You look both as a couple and as individuals to be rather poor prospects for a mortgage.

Your partner's loan is about 6 months gross pay, which is reckoned to be about the top limit on sane unsecured borrowing and this will be terrible for affordability. Your record is full of defaults up to Feb this year and ongoing if you include carcraft.

First move - turn carcraft into a genuine dispute [write a letter of complaint with a genuine complaint and keep a copy - you need evidence, phone calls are not enough] if you have not already. Or just pay it off. Otherwise, this one too will turn into a default in a few months time.

Second move, pay off your partners loans. You are just deluding yourselves that you have £4000 deposit when she has £10800 outstanding in loans. And what is more you are paying interest on the loans for that delusion.

Pixie5740

Have you both sat down with a broker to go through all your finances to see if you are likely to get a mortgage of any description.

It's not just credit history that lenders look at but affordability as well. Your gf may never have missed a payment but her debt to income ratio is pretty high.

Pixie5740

I'll also just add that she will be lucky to get another loan of £10.8k with an income of £22.5k with her existing debts never mind at a decent rate.

MNM2903

DandelionPatrol wrote: »

You look both as a couple and as individuals to be rather poor prospects for a mortgage.

Your partner's loan is about 6 months gross pay, which is reckoned to be about the top limit on sane unsecured borrowing and this will be terrible for affordability. Your record is full of defaults up to Feb this year and ongoing if you include carcraft.

First move - turn carcraft into a genuine dispute [write a letter of complaint with a genuine complaint and keep a copy - you need evidence, phone calls are not enough] if you have not already. Or just pay it off. Otherwise, this one too will turn into a default in a few months time.

Second move, pay off your partners loans. You are just deluding yourselves that you have £4000 deposit when she has £10800 outstanding in loans. And what is more you are paying interest on the loans for that delusion.

Your looking at the satisfied date the default date is the earlier one. In terms of the car craft finance for car warranty ive recieved a letter this morning and they have agreed this can now be written off for the remaining ammount and refunds given for payments made since they went in to administration.

My GF and i went to lloyds bank today and they have now consolidated the loans in to one for us at a lower APR and also means lower monthly repayments.

When going for a mortgage they look at affordability i thought from the people we have already spoken to her monthly outgoings are £330 leaving her with about £1200 per month.

Why is she a poor prospect, she has a good secure job and a decent wage.

DandelionPatrol

MNM2903 wrote: »

Your looking at the satisfied date the default date is the earlier one.

Fair point. But that still leaves you with the most recent default only a year old and March this year as the date when you got stuff cleared

MNM2903 wrote: »

In terms of the car craft finance for car warranty ive recieved a letter this morning and they have agreed this can now be written off for the remaining ammount and refunds given for payments made since they went in to administration.

Good

MNM2903 wrote: »

My GF and i went to lloyds bank today and they have now consolidated the loans in to one for us at a lower APR and also means lower monthly repayments.

Well a plus point for getting a lower rate, but a minus point for taking a lower monthly repayment rather than shortening the loan. And another minus point for not throwing your £4k savings at it.

Although reducing the monthly repayment does improve affordability a bit, it also means that you have to wait longer for the loan not to feature in affordability.

MNM2903 wrote: »

Why is she a poor prospect, she has a good secure job and a decent wage.

She also has about 6 months salary as unsecured debt.

Pixie5740

If she has a good job and a decent wage why does she have over £10k of unsecured debt? That would indicate that she could have problems budgeting. If she really has £1200 a month left then that loan could have been paid off in under a year.

penguingirl

Any chance of your gf earning a bit more in unsocial hours to help pay off her debt? As a band 6 midwife (assuming NHS) she should be getting a good deal extra for weekends and nights. I know plenty of band 6s who earn 30k+ just by doing this, especially if they pick up any overtime or bank shifts. Even as a band, 5 she should be able to get 25k+.

What interest (APR) is the 4k savings getting? What interest is the loan? Assuming the loan is more, put all the savings in it. Remember any interest you pay is dead money and you want to minimise it. If you are really serious about saving you will put every extra penny you have into that loan until it is gone. Have you tried to doing a statement of affairs? Head over to the debt free wannabe board and they will help you out. If you are living rent free you should be able to save a fair chunk /pay off your loans quicker

Immers7

Pay the debt off first and foremost or at least try and reduce it.

As everyone else has said, your credit history is bad enough but her 10 k loan is also going to be an issue on affordability.

Dird

You guys have about £3k/month income after tax and live at home, where is all your money going? If there was 2 of me in the exact same situation (assuming you don't pay rent/bills to parents) that would mean £2.5k savings per month but you've averaged £660/month...if you paid bills it'd still be > £2k/month

You say she has £1.2k left each month but where is it going?

MNM2903

1.2k left was what it would be if we weren't saving a deposit. At the moment we save £660 per month each. We still buy out own shopping pay £100 board which is really cheap. Put gas and electric on and have a life.

My credit history is shot I was an idiot. Going back to my question. I was asking if it's worth me trying to do a joint mortgage I'm going to say no ha.

With lloyds they were prepared to offer 89k to her which doesn't really buy much but with the deposit we are saving it puts us in the region of what we are looking at.

We could probably save a lot more tbh but we also want to live our life's a little and not say no all the time. Some will say that's dillusional or whatever but there's no rush for us were saving a fair bit as it is and it's built up quickly considering the debts etc we've paid of aswell.

Anyway thanks for the replies, looks like we will take our chances just based on her.