Mortgage - easy or not

jojororo

Hi,

My situation is as follows...

I have a flat and mortgage with C&G

My wife wants to move to a bigger property

However, I have tried to move mortgage with current provider but I am self employed and have had a few bad years so income is really low AND I also have £40k of debts, am on a very long DMP AND have four defaults dating back six years. Last default will not clear of credit file till 2017 (they applied the default date wrong but that's another story/thread). It also doesn't help that two of the defaults are with Lloyds (so in same group as C&G)

My wife has a clean credit history and was told by her bank that based on her wages alone she should be able to get a mortgage of £170k

If we sell my property and add an inheritance that I'm due to get soon, we can raise just over £200k

We were looking at a property in the region on £350k

So if my wife was to apply in her name for mortgage of £170k we would be able to put down a deposit of more than 50%

So the question is... if the new mortgage is in my wife's name only would my defaults be an issue or would the fact we have a large deposit mean they are likely to overlook them.

Additional question - I want the new mortgage to be an interest only mortgage rather than repayment - is this likely to be agreed given our circumstances

Thanks.
Jo

Pixie5740

Do you have any joint accounts with your wife?

As for interest only, I think your chances are slim to none. It's pretty much repayment only for residential mortgages these days.

jojororo

Pixie5740 wrote: »

Do you have any joint accounts with your wife?

As for interest only, I think your chances are slim to none. It's pretty much repayment only for residential mortgages these days.

Nope, no joint accounts

Thrugelmir

You've a joint mortgage. Part of the existing equity in the property is yours. Yes you can gift it away. However legally this can be clawed back. Hence lenders reluctance to indulge in any games being played. As puts them at risk.

jojororo

Thrugelmir wrote: »

You've a joint mortgage. Part of the existing equity in the property is yours. Yes you can gift it away. However legally this can be clawed back. Hence lenders reluctance to indulge in any games being played. As puts them at risk.

Thanks, but not quite sure what you mean

The mortgage I have at the moment is in my name only

Are you saying that if I see my flat then I have (legal) obligation to pay of my debts first ?

jojororo

I have now spoken to a Mortgage Advisor (via the Estate Agent I called in for a valuation) and she says there are only a couple of lenders who "might" consider accepting the mortgage application in my wifes' name only.

She also said there were a few lenders who might consider joint application even with my defaults. Sadly she was meant to come back to me yesterday but hasn't called yet so don't know if she failed to find anywhere that would consider it, is still looking into it, just forgot or is a cr*p mortgage advisor.


So what is the best way to find a mortgage advisor who specialises in difficult cases ?

Whilst I do have three defaults, they are all over 4.5 years old (one of which will come off mid Jan '16) AND we can put down more than 50% deposit I would have thought that there must be a few options for us.

Any pointers/suggestions ?

amnblog

If the broker was confident she could handle the case she would have been back to you as there is an opportunity to earn.

csgohan4

jojororo wrote: »

I have now spoken to a Mortgage Advisor (via the Estate Agent I called in for a valuation) and she says there are only a couple of lenders who "might" consider accepting the mortgage application in my wifes' name only.

She also said there were a few lenders who might consider joint application even with my defaults. Sadly she was meant to come back to me yesterday but hasn't called yet so don't know if she failed to find anywhere that would consider it, is still looking into it, just forgot or is a cr*p mortgage advisor.
- limited by your significant debts and history so it is your history that is poor not Brokers


So what is the best way to find a mortgage advisor who specialises in difficult cases ?
-is the broker you have obtained from EA? if it is please switch to on that isn't. EA services are generally poor and not whole of the market

Whilst I do have three defaults, they are all over 4.5 years old (one of which will come off mid Jan '16) AND we can put down more than 50% deposit I would have thought that there must be a few options for us.

-You have 3 defaults and in significant debt, lenders will be few and far between. You are a risk and your defaults stay on file for 6 years. Lenders only care about now and not when your defaults drop off, you have 3 on application.

Is your 50% based on an over optimistic selling price for your house and does it include covering your debts?

Lenders will want to include you on the app because your living there and you have an interest in the property.


Any pointers/suggestions ?

End of the day you have low income AND self employed. Do you have two years worth of SA302 or accounts?


To compound matters you have a poor credit history before even reaching the 50% deposit part




I think you need to consolidate and reduce your debts, wait for your defaults to fall off before moving imho. Your affordability will be hampered by the 40 K debt as that will be knocked off what the Lender will lend.


But if you get mortgage, don't expect it to be the low rates from the best buy tables. It will likely be high interest. Can you afford that?

SeaMeJames

I had a very similar situation and used a fantastic Mortgage Broker who I would definitely recommend. Tricia Page at Paxton Associates - I dont have her number to hand but they're based in Tunbridge Wells (never actually been in to see her in person - all done on the phone/email. She was great from start to finish. Gave me all the options available to me without my 3 years SA302; not pushy but efficient. If not her, use a broker as they know all the options available and you dont have to jump through hoops like you do with a high street lender.