Taking you other halfs rent payments into account when applying for a mortgage

SeduLOUs

You haven't mentioned whether or not you currently have any joint bank account or loans - if so you are now financially associated and her bad credit history will be affecting yours.

WickyWadd

We aren't linked at all financially. I have actually had an offer of a mortgage but the property fell through so now we're looking again. My credit rating is pretty good.

SeduLOUs

WickyWadd wrote: »

We aren't linked at all financially. I have actually had an offer of a mortgage but the property fell through so now we're looking again. My credit rating is pretty good.

That's fine, was just mentioning it as it hadn't been and some people don't realise the financial links that a joint account can make.

Sounds to me like the most practical option is for you to take out a mortgage in your own name, then work on improving her credit over time with a view to adding her to the mortgage later.

Good luck.

ACG

Did you declare to the lender you were married? - This could get picked up at legals stage so its best to ensure you cover all the bases before you get too far down the line.

getmore4less

WickyWadd wrote: »

Hi, first time I've posted so hopefully I'm doing it right.

Myself and my wife are first time buyers. To cut a long story short she has a very bad credit rating. She is with a debt management company and therefore mortgage lenders will not grant her a mortgage.

Anyway the question is - She pays (and has done for a while) a substantial amount into my bank account each month which then pays the rent and bills. Is there any way that this can be taken into account when applying for a mortgage?

I can get one in my name but it's not for that much (she's the one who earns more in our house).

Many thanks in advance.

IS this being done to get a reduced payment on the DMP?

WickyWadd

Did you declare to the lender you were married? - This could get picked up at legals stage so its best to ensure you cover all the bases before you get too far down the line.

For the record if anyone else is wondering yes I did. I even told them the entire story re her debt.

IS this being done to get a reduced payment on the DMP?

No it's just her share of the rent and bills

DandelionPatrol

WickyWadd wrote: »

Although we would fix her debt problems with the deposit, we are both in our 30's, it's time to think about buying. The deposit is an inheritance and it's an amount we're very unlikely to come by ever again. Paying rent and saving is almost impossible (although we have managed to scrap a bit together) with the amounts landlords command these days.

Her debt is putting her income into a shadow which stops it being taken into account for a mortgage.

There are 2 steps you need to take in order to get a mortgage

• Clear existing debt
• Save a deposit

If the inheritance is not big enough to do both, then don't pretend to yourself that it is.


So either

• sort out her debt - presumably she is paying quite a lot in interest - and save what is not going into interest. The sooner you do this, the sooner her credit record comes clean
• Go for a mortgage on your own

But overall the best is to do whatever it takes to save. If you cannot organise yourselves to save, then really a mortgage is not for you, because you will not cope when interest rates rise.

getmore4less

DMP usualy means interest frozen and trashed credit.

Just make sure it is one of the no feepaying debt management companies.

Thrugelmir

WickyWadd wrote: »

No it's just her share of the rent and bills

What's the source of the deposit for the potential purchase? This will need to be evidenced.

getmore4less

If you can't save fast enough rent somewhere cheaper so the Substantial amount getting transfered is smaller.