Mortgage confusion

emsywoo123

Hi all,
Just looking for some advice/reassurance really! I will bullet point the salient facts, not for rudeness, but simplicity!

• 2 adults earning, me £30K, OH £35K (2 children as well. Sadly not earning )
• Looking to buy propery approx £350K
• Parents gifting £220K (approx)

The issue is, my credit rating is TERRIBLE. I mean dire. Would we be better with him applying for mortgage alone? And some sort of legal document protecting initial investment from my parents? Would adding me and my horrific credit history actually reduce likelihood of mortgage?

Many thanks in advance :beer:

AnotherJoe

See a mortgage broker to answer those questions.

To protect parents best thing may be a loan, i did same with my daughter. I have a second charge against the house, so if something went totally awry no one else could get that money. The will balances things out.

Do you owe lots of money? Or have unfulfilled CCJs or suchlike? If so some of that £220k may be better aimed at fixing that.

ACG

Terrible to some people is actually not too bad in the real world, terrible to other people is the end of the world in real life.

Get your credit reports in front of an experienced broker. Failing that, get the kids out to work so you can buy a house for cash

Or alternatively, if you tell us what you have (defaults, CCJ, Bankruptcy) and when they were registered. We can give you an idea of whether it is achievable or not.

emsywoo123

AnotherJoe wrote: »

See a mortgage broker to answer those questions.

To protect parents best thing may be a loan, i did same with my daughter. I have a second charge against the house, so if something went totally awry no one else could get that money. The will balances things out.

Do you owe lots of money? Or have unfulfilled CCJs or suchlike? If so some of that £220k may be better aimed at fixing that.

Thanks, I will look into the charge thing. My parents really want my kids to benefit from the money (as in my kids!) so want to make sure that if OH and I broke up for example, he would not have a claim on it. I think they have been watching too many soaps, but it is a condition that it is ringfenced, so I will obviously happily comply with whatever they say.

I owe about £15K. I was on top of this until 6 months ago, and am now in a self managed DMP. I will not tell my parents about it, so cannot use the money for that.

emsywoo123

ACG wrote: »

Terrible to some people is actually not too bad in the real world, terrible to other people is the end of the world in real life.

Get your credit reports in front of an experienced broker. Failing that, get the kids out to work so you can buy a house for cash

Or alternatively, if you tell us what you have (defaults, CCJ, Bankruptcy) and when they were registered. We can give you an idea of whether it is achievable or not.

Those pesky kids just won't get up a chimney! :rotfl:

No CCJ or bankruptcy (although I was BR about 12 years ago, discharged 11 years ago. Not proud at all of this, but they are the facts)

Defaults for about 6 months on £15K, self managed DMP.

ACG

You might need to hold fire a couple of months but there could be options.

Definitely worth getting your credit reports in front of a broker with experience in adverse.

Richard_Pia

With the defaults being so recent, it is likely you would be best to put the mortgage in husbands's name only. The size of mortgage you are looking for should be affordable on his salary alone, assuming he doesn't have a significant amount of debt in his name.

A solicitor should be able to arrange a second charge on the property so that your parent's money is protected.

emsywoo123

ACG wrote: »

You might need to hold fire a couple of months but there could be options.

Definitely worth getting your credit reports in front of a broker with experience in adverse.

Thanks, we are looking about 12-18 months before this, I am just trying to get my ducks in a row. #quack

emsywoo123

Richard_Pia wrote: »

With the defaults being so recent, it is likely you would be best to put the mortgage in husbands's name only. The size of mortgage you are looking for should be affordable on his salary alone, assuming he doesn't have a significant amount of debt in his name.

A solicitor should be able to arrange a second charge on the property so that your parent's money is protected.

He has some debt, low though, a loan, and great credit history. Lucky boy :rotfl: We are not married. Yet. It is on my list :rotfl:

ACG

Im not sure it would fit in your husbands name either on credit or on affordability.

Keep on top of the DMP, no new adverse in the next 3 months or so and there will be options. In 12 months time you will have more and better options open to you.

Wobblydeb

Would it be worth simply holding as tenants in common? http://www.thisismoney.co.uk/money/news/article-1594984/Tenants-common.html