Mortgage - 1 good credit score & 1 bad credit score

mcc86

Hello,

We're first time buyers - myself having a good credit history but my partner having a default which will remain showing until early 2019.

We have been viewing properties and found one we like that we would like to put an offer on.

We spoke to a well known mortgage broker to get a mortgage agreement in principle and find out exactly how much we could borrow. I explained the situation and have been advised that if I need her savings for the deposit, then she would need to 'gift' me the money and for the mortgage to be in my name only. Apparently this restricts the lenders we can use, and the interest rate will not be so good despite us having a 20% deposit.

Essentially, I'm looking for a second opinion to see if this is the only way of doing it? Obviously just having myself on the mortgage severely restricts the amount we can borrow.

ACG

Ignore that broker and find a new one who will do it properly without you having to basically lie.

High street rates are potentially available, but it will come down to the details. You will not need a 20% deposit to overcome a 4-5 year old default.

DCFC79

mcc86 wrote: »

Hello,

We're first time buyers - myself having a good credit history but my partner having a default which will remain showing until early 2019.

We have been viewing properties and found one we like that we would like to put an offer on.

We spoke to a well known mortgage broker to get a mortgage agreement in principle and find out exactly how much we could borrow. I explained the situation and have been advised that if I need her savings for the deposit, then she would need to 'gift' me the money and for the mortgage to be in my name only. Apparently this restricts the lenders we can use, and the interest rate will not be so good despite us having a 20% deposit.

Essentially, I'm looking for a second opinion to see if this is the only way of doing it? Obviously just having myself on the mortgage severely restricts the amount we can borrow.

Unfortunstely it wasnt your score that was the issue but the default on the credit report.

YHM

As above, speak to a different broker.

I am aware of applications going through with a 5% deposit with defaults from more recent than yours. Its all about having a good broker that understand which lenders would consider you.

mcc86

Thanks all.

I should have clarified the broker was not insisting I need a 20% deposit - they were saying that if I was to use her savings too, to achieve a 20% deposit then I would need her to 'gift' me the money and have a mortgage in my name only.

The feeling I'm getting from reading those responses is that it should be possible to get a decent mortgage, with both our names, despite her default a few years ago?

Are we allowed to give recommendations on this forum?

amnblog

Name and shame the Broker.

This sounds very wrong.

ACG

Mcc, that's correct. Decent rates with the default are possible with high street rates also a possibility depending on the details.

mcc86

Thanks all - we spoke to a different mortgage broker who advised slightly differently.

We have gone down the route of just having one of us on the mortgage to guarantee a better rate, but my partner with a default for another year or so providing a 'gift' and then will go on the mortgage after the 2 year fixed period.

lizzel

We were in exactly the same situation back in September. Even though we got a DIP my partners default stopped the full mortgage. I have gone ahead with only myself being named on the Mortgage. My partner isn't contributing to the deposit as the mortgage broker advised that the high street banks we were going to use would see my partner gifting a deposit as a red flag.