Getting a mortgage advice

Thommo86

Hi, I've been a long time lurker with no reason to post but now need some expert advise of my own. Bit background info.

I'm 30 now but in 2008 I bought a house that cost £110k with my ex partner. All was in my name, we subsequently split in 2011 and I lived there alone, I lost my job beginning off 2012 and had my house repossessed in Feb 2013, I've had a few phone calls from Bank of Ireland saying I owe money still from that but so far nothing has come of it and haven't heard anything regarding this for well over a year.

I've since got engaged and we are looking into buying a house, I have checked my credit score on both Experian and clearscore and they are both stable/average. I haven't applied for credit for years but do have another default on my account from the same period. The only credit I have now is a Very account that has £1000 to pay.

My partners credit score is very good, we're looking at a house that will cost between £70-80k and have about £15k in savings so well over the 10% deposit mark. I earn £26700 a year and my partner earns £16000.

The questions I have are

1. Would I qualify for a mortgage now after getting a house repossessed?

2. If no would my partner qualify for a mortgage for this amount on her own?

3. If I was to get a mortgage would my rates be much higher?

Thanks for any help or any extra information I might have missed that I need.

AnotherJoe

Pardon me for being so blunt, but you appear to have your head in the sand over your previous Bank of Ireland arrears. Is it for a mortgage in Ireland?

In any case I'd be worried that once you had a house they could come after you, or this info would come out at some point and derail the application

Plus if you dont mention it when applying that is fraud.

I think you need to get the BoE sorted. How much money do you owe them?

ACG

1) possibly.
2) possibly.
3) probably not, there are no real adverse lenders at 90% LTV, there are but the rates are pushing double digits.

It will come down to the details. With repossession and a 10% deposit, you are going to struggle. You need a good experienced broker to advise you on the best way forward.

Personally, I would be reluctant to put my name on a new property knowing a bank could could after me for thousands. You either need to resolve the issue with the bank or you need to plan ahead knowing you have protected your finances as best you can. If you make a single application, that could lead to other issues, ie whos is the deposit, what happens if you split etc.

Find a good experienced broker in adverse credit.

Thommo86

AnotherJoe wrote: »

Pardon me for being so blunt, but you appear to have your head in the sand over your previous Bank of Ireland arrears. Is it for a mortgage in Ireland?

In any case I'd be worried that once you had a house they could come after you, or this info would come out at some point and derail the application

Plus if you dont mention it when applying that is fraud.

I think you need to get the BoE sorted. How much money do you owe them?

Thanks for replying, no it's fine I appreciate it! I haven't got my head in the sand, they haven't contacted me for a year or so, I know I'll have to make a monthly contribution eventually but rightly or wrongly at the moment I'm waiting it out to weigh up my best options.

I'm not sure of the exact figure I owe as they were meant to contact me after the phone call but as I said they haven't.

Debtslayer

How much do you owe from previous property?
Personally I would think it would look better if you paid any arrears off before looking to apply for another mortgage; surely that would look better in the eyes of future lenders?
Also you wouldn't have the worry that they'd come after you in 6, 12 or 18 months time and possibly be putting another house in jeopardy because of your past.
Either that or girlfriend gets mortgage and property in just her name, but you'd have to sign that you have no interest in the property. If she could get a mortgage in just her name would be down to affordability, dependant on incomings and outgoings

Thommo86

ACG wrote: »

1) possibly.
2) possibly.
3) probably not, there are no real adverse lenders at 90% LTV, there are but the rates are pushing double digits.

It will come down to the details. With repossession and a 10% deposit, you are going to struggle. You need a good experienced broker to advise you on the best way forward.

Personally, I would be reluctant to put my name on a new property knowing a bank could could after me for thousands. You either need to resolve the issue with the bank or you need to plan ahead knowing you have protected your finances as best you can. If you make a single application, that could lead to other issues, ie whos is the deposit, what happens if you split etc.

Find a good experienced broker in adverse credit.

Thanks. I've spoken to an experienced broken a few months ago and he told me that as the repossession was over 3 years ago it's possible to get one. He said that some mortgage companies simply just take your income and outgoings and do each deal based on different criterias, I have a decent enough long term job now that the construction industry has taken off again. He also said that banks are fighting each other to give people mortgages at the moment to get them to use them, don't know how true that is though!

If we have to go down the single application route then that's fine, as long as she would be accepted for that amount obviously.

Thommo86

Debtslayer wrote: »

How much do you owe from previous property?
Personally I would think it would look better if you paid any arrears off before looking to apply for another mortgage; surely that would look better in the eyes of future lenders?
Also you wouldn't have the worry that they'd come after you in 6, 12 or 18 months time and possibly be putting another house in jeopardy because of your past.
Either that or girlfriend gets mortgage and property in just her name, but you'd have to sign that you have no interest in the property. If she could get a mortgage in just her name would be down to affordability, dependant on incomings and outgoings

I'm not sure exactly but it'll take a few years to pay off I think. That's the thing it was the past, I know ultimately my fault and all the blame lies with me but I was quite young and silly at the time of buying and had only been in full time employment for about 18months when I got it and obviously looking back I should have held off a year or 2 before buying to see my longer term prospects.

AnotherJoe

Thommo86 wrote: »

Thanks. I've spoken to an experienced broken a few months ago and he told me that as the repossession was over 3 years ago it's possible to get one.

And did you tell him that you owed BoE a large sum of money that they wanted repaying? :eek:

I suggest you post on the Debt Free forum and get advice about best way to contact the lender so as not to activate the loan if its going to expire (though i think it probably has about 3 years). Or perhaps you can make them an offer on the sum owing to clear it?

I think it is evading things by waiting for BoE to contact you, do you want the next time to be when you get a notice from bailiffs at your new house saying they plan to seize all your possessions or somesuch? Or on completion day when they suddenly freeze your purchase and request half the deposit funds ?

ps you said "That's the thing it was the past" but its in the present

Thommo86

AnotherJoe wrote: »

And did you tell him that you owed BoE a large sum of money that they wanted repaying? :eek:

I suggest you post on the Debt Free forum and get advice about best way to contact the lender so as not to activate the loan if its going to expire (though i think it probably has about 3 years). Or perhaps you can make them an offer on the sum owing to clear it?

I think it is evading things by waiting for BoE to contact you, do you want the next time to be when you get a notice from bailiffs at your new house saying they plan to seize all your possessions or somesuch? Or on completion day when they suddenly freeze your purchase and request half the deposit funds ?

ps you said "That's the thing it was the past" but its in the present

I told him there's a possibility but I haven't spoken to them in while.

No of course I don't want either of them scenarios to happen, I just want to move on from the mistakes I've made in the past I'm aware I have to face them mistakes I'm just looking for some basic advice as to whether it's even any point in trying to obtain a mortgage or if it would be better for my partner to get the mortgage in her name, and if that's even possible on her salary.

I know it's the present now but like I said I was very young to be buying a house then the economy went really bad and I got caught up in it and a lot has changed the last 3 years. I really do appreciate the advice you're giving me, sorry if it says like I don't! Thanks

AnotherJoe

Thommo86 wrote: »

I told him there's a possibility but I haven't spoken to them in while.

No of course I don't want either of them scenarios to happen, I just want to move on from the mistakes I've made in the past I'm aware I have to face them mistakes I'm just looking for some basic advice as to whether it's even any point in trying to obtain a mortgage or if it would be better for my partner to get the mortgage in her name, and if that's even possible on her salary.

Of those three options, I suggest a fourth, fix the BOE first. How much do you owe them, ballpark? Would the £15k you are trying to hang on to, help? You probably regard it as yours but morally and likely legally it's BoEs.

Ask on the debt free wannabe forum ( and expect some hassle for trying to evade paying back BoE what you owe them. ). There may be a way of arranging it so it can be cleared that doesn't affect the purchase you'd like to make.

I had a few ideas as to what you could do without clearing that, but they all come down to some sort of fraud or have other issues.

ACG

Jesus! Those in glass houses and all that.
Give the bloke a break. Not everyone is perfect, due to the laws we have in this country there are ways to make them work for you, and that includes potentially buying a new house and paying back the BoI (not the BoE) on the drip or potentially not at all.

I am not saying it is right or wrong, but its possible and legal.