Default and mortgage query

anna_1977

HI,
In Feb-April this year I was issued with a number of defaults. I am currently on a token payment plan with Stepchange, I plan to pay the debts off with F&F settlements in Jan/Feb time.
I am also in the process of selling my house and would like to buy with my partner (who has good credit history).

So, I will have £315k cash to put into a £550k house. He will have £40k cash and the rest we plan on a mortgage. Personally I don't want to be on the mortgage but will need to be on the deeds.

What is the likelihood of getting an mortgage with my defaults but all showing as partially settled, any ideas?

Thanks

ACG

Is there a reason for the defaults?
How many is there? What are they for (credit cards/loans?), How much are they for?

anna_1977

They are debts from after my husband left. Total £25k and spread over 9 defaults. They will be paid before he applys for anything.

I'm wondering if we are better off having some watertight contract that says the ?% of the house (£315k worth in %) is mine. I have no idea how it works

anna_1977

Sorry, I realised you asked for more details

They are credit cards and a store account that is currently in dispute.

The amounts range from £300 to £9000 with one of the Barclaycards

ACG

There should be options but I think the rates will be around the 6% mark.
Definitely one for a broker.

You can set up the title deeds to say what ownership you both have - speak to the solicitor dealing with it about your options.

anna_1977

I think title deeds might be the best option - thanks I will seek advise from family solicitor.

I just need to make sure my money is protected. I'm currently paying 1.25% so 6% is a scary figure!

ACG

It will only be for maybe 2 years, then there should be more "normal" lenders but 9 defaults is a lot so recently.

It may be possible at lower rates - 4.5 to 5% but if I say 6% anythign else is a bonus Under promise as they say. But realistically it is not going to be 1.25%.

anna_1977

Thank you for your help

Fireflyaway

Could your partner get the mortgage just in his name and you have a 'charge' put on the property meaning it can't be sold until the money you put in is returned? My parents lent us a large deposit when we bought our first house and that is what we did.
Or buy a cheaper house
or let him have the mortgage but then add your name on the deeds?
I'm sure a solicitor will have lots of suggestions.