Default found!

helypops

Hi, I hope someone can help!
We are looking to but our first home and have found the perfect house, but we have just found out that my husband has a default from a store card that the thought was sorted years ago. We can fix it, but it will take 3 months! We have talked to family, and my mum has said that she is happy to have her name on the mortgage, or to be a guarantor, and even put her house (which has a small mortgage on it now) as collateral, as she knows we will never default. We have a 5% deposit. Do you think we can get a mortgage? And what option would be best?
Thanks in advance!

ACG

A guarantor is there to overcome an income shortfall really, not bad credit.

When was the default registered?
How much was it for?

helypops

Hi, thank you for the quick reply.
Its for a few years ago, for only £101. we can fix it, but it will take a while.
Could my mum be on the mortgage with me? As in, me and her be on the mortgage and me and my partner on the deeds?

csgohan4

never mix money and family you will regret it.


Also the mortgage will be limited by the mothers age and also she will have to pay extra stamp duty as it is her second house.

ACG

No, the deeds usually need to match the Mortgage. There are some exceptions, but what you are describing is not possible.

Forget mum being involved for the moment - that is a last roll of the dice if it is needed. Her age, income and expenditure will be taken in to account. That means her age may limit the term and her Mortgage (if she has one) will be taken in to account for affordability.

The most important question is When was the default registered. We need a date or at least a month and year. That will determine what options are available.

amnblog

What do you mean by -we can fix it but it will take a while?

Andrea_Mortgage_Advisor

Don't panic. Speak to an adviser. It's not for a large amount and, depending on how long ago it was registered, may not cause much of a problem.