What happen if we are turned down for a mortgage?

april87

Hi,

I have a we queries and wondered if anyone would be able to help out.

Currently the OH has a mortgage in his own name. He revently signed up for a new 2 year deal with his mortgage provider. Our circumstances have now changed and we would ideally like to move into a larger property.

Bit of a background, I have made some bad choices in regards to debt when I was younger. Most of which are now sorted/fallen off my credit file. Across all 3 credit files there is only 1 negative - A trust deed which I took out because I thought it was a good idea at the time. This is due to disappear off my credit file in July 2018 . Over the past 12/18 months I have held credit cards which are all paid timely to repair some of the damage.

Now the question is, if me and my OH were to apply for a larger mortgage together and got turned down, is their any consequences to this, obviously not getting the mortgage is one but is there anything we would need to be aware of such as financial association etc. He would not be able to apply alone for a big enough mortgage to buy a bigger property in our area, tagged with that property prices in our area aren't great at the moment and we need aware that he might not get back what he paid for with our current property.

Thanks for any help/suggestions.

Thrugelmir

april87 wrote: »

Over the past 12/18 months I have held credit cards which are all paid timely to repair some of the damage.

You are back in debt looking at your signature. That may the concern for lenders. Rather than focusing on paying on time. Turn your attention to repaying the debt owed.

kingstreet

april87 wrote: »

is their any consequences to this, obviously not getting the mortgage is one but is there anything we would need to be aware of such as financial association etc.

Yes. You will create an association by making a joint application.

ACG

You woud become financially associated - although you can apply to the credit agencies to have that removed if you wish, assuming you are not associated elsewhere.

You would also need to declare a declined application, assuming the full application were declined (if you were declined at AIP/DIP stage then it is different).

april87

Thrugelmire yeah I am back in debt. The largest of which was to pay for a new boiler, we had a small savings pot which was used up when communal repairs were needed done to the replace the roof and then our boiler broke a week later, along with our shower. All cards are at zero percent and being paid off in chunks along with money being added to our savings pot. The debt is not due to reckless spending as it was previously. I am well and truly aware of what the root/need of that was.

ACG & King thanks for the confirmation.

xyz123

april87 wrote: »

Thrugelmire yeah I am back in debt. The largest of which was to pay for a new boiler, we had a small savings pot which was used up when communal repairs were needed done to the replace the roof and then our boiler broke a week later, along with our shower. All cards are at zero percent and being paid off in chunks along with money being added to our savings pot. The debt is not due to reckless spending as it was previously. I am well and truly aware of what the root/need of that was.

ACG & King thanks for the confirmation.

If you need to use multiple credit cards for emergency like boiler, are you 100% sure you are ready for financial stress and responsibilities that being a house owner brings... Not saying you can't afford it or anything but please do think long and hard before committing payments for many coming years...

april87

XYZ it is something that I know myself I am ready to commit too. As my cards are at 0%, my OH and I are working hard to build up another savings pot due to it being emptied when we had to contribute to a new roof being put on our building. My OH already has a mortgage and we make small overpayments on this every month. I get where you are coming from as it is a huge decision, but we have thought about this, and are prepared to stay put in our current flat for another 6 months or so, until the credit cards are paid off, and we have a substantial savings pot.
Thanks

Neutrinno

april87 wrote: »

XYZ it is something that I know myself I am ready to commit too. As my cards are at 0%, my OH and I are working hard to build up another savings pot due to it being emptied when we had to contribute to a new roof being put on our building. My OH already has a mortgage and we make small overpayments on this every month. I get where you are coming from as it is a huge decision, but we have thought about this, and are prepared to stay put in our current flat for another 6 months or so, until the credit cards are paid off, and we have a substantial savings pot.
Thanks

You may think that and of course it may be true, but lenders will look at this in the view of you have had a trust deed in the last 6 years which is still on your report, and now you are back in debt and building it up again = will history repeat itself?

They will take no notice of whether or not they are on 0% interest.

If you are going to apply in joint names and the trust deed is still on your report, then I advise you use a broker who specializes in poor credit history mortgages, as most lenders will decline with this on the report (or even if you have ever had one), you will likely need to look at specialist lenders.

april87

Neutrinno I did think that would be the case, in terms of a broker. As I said we will look to put it off as long as possible, and ideally have my cards paid off within the next 3-6 months. I was just looking to see what would be the consequences of a rejected application, and from going by the general consensus at the moment, it is not something I am willing to risk.

Thanks for your input.