Adverse Credit Mortgages

jamiesmack

Im looking to get a mortgage with my partner but i had some credit problems in the past.

i earn basic wage of £17000
my partner earns £22000

my credit problems were paid off over two years ago, I had no ccj's but did have at least three defaults. wasnt good, but no probs since and have had a mobile phone contract for 6 months.

partners credit history is brilliant.

what are my chances of actually getting a mortgage?
any idea what percentage i could get? up to what value?

please help!!!!

herbiesjp

Just looking at a simple 4 times joint income, you could look at £156k as a mortgage - some may give more and other less.

Would that be enough? What kind of deposit do you have?

Do you have any other loans/credit card balances outstanding?

These will affect the amount of borrowing you could look at getting.

However you rcredit file will also dictate what rates and amounts you could look to borrow. Have you got an up to date copy of you credit file from Equifax or Experian?

jamiesmack

I do have my up to date credit report, shows no activity really apart from the problems i had two years ago.

deposit is obtainable but hoped to get as high a percentage mortgage as possible as i hope to do some work on the property and obviously need funds.

my partner has a small loan - approx £70 a month.
she does have a mortgage on another property but as i am going to be the main applicant on the new mortgage , i didnt know how much it would matter

is it possible to get that high a mortgage even with credit problems??

herbiesjp

The small loan would reduce your partners income by £840 to allow for the commitment.

Will her first propert be let out? Will the rental payments cover the mortgage payments? This property could affect your borrowing potential if you do not apply, or look to move this along, in the correct way.

You can get mortgages over 100% of the property value - however without knowing what the exact details are on your credit file I can't say what your maximum potential would be. Normall for 100% mortgage you would need o be squeaky clean, so I would be guessing at 90% maybe being an option for you. What prices are you looking at?

jamiesmack

I am hoping to keep the old house to live in and maybe sell the new property up once its done up. not sure. thats the plan!!!

looking at houses approx 100,000. so will probably need 10,000 deposit im guessing??

jamiesmack

The problem im having is that you get told such different figures by different people that you dont know where you stand!!

is it best to go to an adverse credit site or go to a bank or somewhere else? i really am lost!!

herbiesjp

Your best bet is to talk your situation through with a fee free whole of market adviser. They will then assess your scenario and advise you of your best course of action i.e. keeping and living in your current property will mean various options potentially not being available to you in relation to the new property purchase