Family help mortgage but a default on my aco!!!!

oc77777

My girlfriend and I are looking to buy somewhere. My Dad has kindly said he would lend us the deposit through the barclays springboard mortgage, so he gets his money back in 3 years plus interest. Our earnings are good and we qualify on the afforability however I have a 4 year old settled default (£100) but she has almost perfect score but with a 6k loan & 9K CC.

She is overpaying on her card now to reduce it and obviously I can't do anything about my default. We have about 8k saved up for stamp duty etc.

Any advice would be great!

davidwood123

The 15K debt she has could be a problem. I'd be surprised if they don't question this.

oc77777

Thanks, speaking to one or two people within the industry they mentioned that lenders would just remove the amount of debt from the amount they would lend us. Does this sound right?

ACG

As a general rule of thumb, lets assume your annual income is £30k.
And your monthly commitmtnets on loans and credit cards are £250 a month (or £3,000 per annum), they would deduct the £3k from the £30k leaving you with £27k and then multiply that by around 4 to 4.5.

If your only option is the family springboard, then you are very limited. So I can not see it being an issue if you give a try. Worse case scenario is you get declined and you have no other options. What would be worse is if you have a few options and you choose the wrong one, that can then affect the other options.

However, if you speak to a broker, you may find you have more options...