Getting a Joint Mortgage

dilemma10

Hi Guys,

Please could you shed some light as to what I need to do / what my chances are of securing a joint mortgage with my partner.

Some background:

He bought a flat in 2013 for £120k with a £20k deposit; this flat is now worth approximately £165k (he lives in a great location) and his mortgage is now at approximately £100k; so by rights I think he has about £70k equity in this.

We would like to keep hold of this flat ideally and buy another house together.

Our earnings are fantastic (joint salaries are £120k excluding bonuses); he is 38 and I am 27 and have, fingers crossed, a great career ahead of me.

Here comes the very big catch.

My credit rating is not good at all - I have been working on repairing it but have defaults (majority are satisfied but I fear the damage is done....) and yes, I am on Noddle, and I dare not even tell you what the rating is (!!!).

His rating is excellent - put it this way, he drove out of a forecourt with a near-new Porsche. He has, however, in the past had defaults and struggle to get his mortgage and went through a broker. He must have repaired it over the last three years.

Deposit for a new house would not be the biggest issue, we could pull the deposit together.

We would like to buy somewhere in 2017.

Questions:

1) What should he do with his flat? Release equity? Rent out?
2) Will we struggle to get a joint mortgage, even with him having equity in his property?
3) Would a broker find something for us?
4) On a combined salary of £120k what, realistically, is a an affordable amount of money to borrow given our area is quite expensive compared to others (and we cannot really move).

I am really worried I am going to let the side down completely even though I have a fantastic wage .

Please help!

foxy-stoat

If he wants to become a Landlord then move the mortgage to a BTL and try and release as much equity as possible, use a broker, if not then sell the flat and use the money to put towards the next property....You will end up paying more stamp duty on the second property though.

If you still have unsatisfied defaults then pay them off and settle them. Then your credit file will repair itself.

No idea if you will struggle with a mortgage, he wont be able to use the equity if its tied up in the current flat.

Normally its 3-4 times joint salary, debts effect your affordablilty. If you have checkered credit history then the amount of deposit required will increase.

I am sure a broker will find a mortgage for you, if not then you will have postpone the idea of a mortgage until your credit file is looking better and it will give you more time to save for a larger deopsit.

Thrugelmir

dilemma10 wrote: »

His rating is excellent - put it this way, he drove out of a forecourt with a near-new Porsche.

Nothing to do with credit rating. Salary is sufficient to meet repayments. Car provides security for the debt.

What it will do is your impact your ability to obtain a mortgage.