Applying for mortgage, partner has adverse credit

aarmstrong

Hi,


Me and my partner are currently looking to buy a property together.


I currently own a shared ownership property which I have approximately £43K equity in.


This is a basic breakdown of my financial situation;

• Income £45,000
• Excellent credit history (999 Experian)
• No outstanding debts
• £10k in savings (hoping to use this for broker fees, stamp duty…)

Unfortunately my partner has adverse credit history which involves a CCJ from 2017 (which was cleared imminently) and outstanding debts of £300. Also her credit score is rather poor.


We need to borrow around £260K, I know this will be unachievable by myself, but with my partner earning £27K and me earning £45k do you think it would be possible to obtain this? If so would the fees and interest make it worthwhile?

ACG

aarmstrong wrote: »

H
(1) a CCJ from 2017 (which was cleared imminently)
(2)and outstanding debts of £300.

(1) which was cleared imminently? Do you mean will be cleared imminently or it was cleared immediately? If it was cleared straight away does it show on the credit report?

(2) debts as in good debts (ie paid on time) or bad debts (in arrears/defaulted)?

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Depending on the finer details, rates of potentially 4.5% through to 5.5%, although I suspect something below 5% would be likely.

aarmstrong

Thanks for the reply,


1. Yes CCJ shows up on credit report (Experian and clear score). This was cleared immediately when notified in 2017.


2. Debts include £200 on credit card paid in full each month and £100 defaulted.

ACG

You may need to get to a 20% deposit, but you are probably not a million miles from that anyway.

You should have options, but the rates are unlikely to be high street. So around 5% is probably not a million miles out. Definitely one for a broker to sort out for you though due to the likely lenders.