remortgage dilemma

Faz_000

Hi
I am looking for some advise - my current fix ends in August this year -unfortunately I cannot just switch to a new product with same lender like I did last time because I need to get my brothers name off my mortgage and add my husband

prob is husband has very poor credit rating and I don't earn enough to take mortgage on in my own name - so I am quite worried - keeping my brother on the mortgage for another 2 years in not an option unfortunately so I really need to get this sorte.


amount we are looking for is 119k - and house value is around 340k


Me:
Salary – £26k
Child benefit- £1,630
2 x credit cards with total balance 3k
Current account in credit
Credit rating good – no defaults

Husband:
Salary – 21k
1 x credit card with zero balance.
5 defaults all settled (default dates are between 2013-2015 and historic payday loans)
Current account in overdraft

We have 2 children but no childcare costs.


Would the fact that we have LTV of less than 40% plus looking for less than 2.5% joint income give us options?


To be honest I am prepared to take the hit and take a higher interest rate for a couple of years if that's the only option - we could always remortage again in 2 years when husbands credit rating has improved..my main concern is will we even get a mortgage with our details?


any advise will be welcome!

Thrugelmir

Your brother cannot simply walk away. So it is an option for him to remain.

Lending policy and criteria rarely gets overridden by LTV. As it's the applicants that really matter.

Faz_000

what I meant is that he is to buy soon with his partner so cannot remain on my mortgage - and also doesnt live in the property anymore. its myself and my husband who live there now so thats why we want to get brother off and add husband.

of course I know if we dont get another deal then he will have no option other than to remain named on the mortgage - but I am looking for advice on whether myself and husband would be able to get a mortgage based on the details provided?

I am planning to engage a broker - but just looking for any advice on similar experiences?

Many thanks

cahillg81

You probably have a better chance of getting something staying with your existing lender, have you spoke to them?

Faz_000

Cahillg81 - do you mean if I try to do a transfer of equity with my existing lender? im with santander - I get the impression they wouldnt look to favourably on husbands defaults?

cahillg81

Yeah, I'm an underwriter and would give more credence to the TOE/CHOB than I would a new customer. Has your brother being contributing to the mortgage?

From my perspective, I'd want to see 6 months salary fed bank statements showing the mortgage payments and evidence the mortgage was being paid by yourself and husband. I'm assuming that's the case given the brief outline you provided.

Faz_000

thanks for your reply - although I am a bit confused as I read on here weekly that lenders dont really care how long you have been with them - its all about their criteria being met- i would have thought with santander being a high street lender they wouldnt approve a mortgage with my husband on it?

mortgage is paid by me and husband and has always come out of my account. brother does not contribute to mortgage or bills.

thanks - has given me more to think about

JimmyTheWig

Faz_000 wrote: »

prob is husband has very poor credit rating and I don't earn enough to take mortgage on in my own name
...
amount we are looking for is 119k - and house value is around 340k

Me:
Salary – £26k
Child benefit- £1,630
2 x credit cards with total balance 3k
Current account in credit
Credit rating good – no defaults

Husband:
Salary – 21k
1 x credit card with zero balance.
5 defaults all settled (default dates are between 2013-2015 and historic payday loans)
Current account in overdraft

We have 2 children but no childcare costs.

Others will be better placed to confirm either way, but I would have thought that this was affordable on your own - especially if you can transfer the credit card debts onto your husband's cards.
Including the child benefit (some allow this) you're looking at 4.3x income.

I would have thought that would have a better chance than a joint mortgage with your husband's history.

Do you already have any joint credit with your husband (e.g. joint current account)? Are the two of you linked on your credit report?

Faz_000

Hi JimmytheWig - we have no joint accounts so not financially linked. i did consider single mortgage but will this not a problem as they will then see my husband a 3rd dependant?

I hope to be able to pay off the 3k balance before applying.

JimmyTheWig

Faz_000 wrote: »

Hi JimmytheWig - we have no joint accounts so not financially linked. i did consider single mortgage but will this not a problem as they will then see my husband a 3rd dependant?

They will. But I have no idea how big an impact this will have.
As I say, hopefully someone with more knowledge will be along to indicate whether it's a go-er or not.

I hope to be able to pay off the 3k balance before applying.

That will help.

AnotherJoe

of course I know if we dont get another deal then he will have no option other than to remain named on the mortgage
=======
That's going to leave him with 3% extra stamp duty on his new house !