Private Mortgage

Peterrabbit

Need advice please...

We have bought a property off a friend, this has been done through a solicitor, my name is on the deeds and friends name is showing as a charge on the deeds
The agreement is that we pay as much back as we can over the next 3 years with minimum payments of £600 per month, we have given friend £25,000 as a deposit and aim to give her another £10,000 in the next couple of months. This was a step on the ladder for us and friend had done this so we can pay as much as we can interest free before we re-mortgage.
I realise this kind of situation is not as common nowadays but my question is, are we able to build our credit rating somehow as we are keeping up with monthly instalments and paying more each month if we can to bring the balance down.

Thank you in advance for your advice

AnotherJoe

Why worry about your credit rating? What would you do with it? What use is it? A mortgage lender isn't going to care about it. If you must obsess about it have mobile and broadband contracts, keep up to date with the payments, have a couple of credit cards you pay the balances on in full each month.

Peterrabbit

When we remortgage in 3 years for the money we owe to friend and at the moment our credit rating isn’t the best, are mortgage lenders going to look at us even though we own part of the house? Thanks for your reply

tlc678910

Hi, just as an aside I would make sure you keep very thorough documentation to evidence every payment - perhaps print out/save the confirmation page of bank transfers or if not banking online ask for a receipt from the bank or a signed receipt from your friend. Keep a very thorough balance sheet of running total and payment dates to go with these. I'm not suggesting that they would rip you off but any missed/forgotten payments could be a lot of money and lead to problems.

[Deleted User]

Peterrabbit wrote: »

When we remortgage in 3 years for the money we owe to friend and at the moment our credit rating isn’t the best, are mortgage lenders going to look at us even though we own part of the house? Thanks for your reply

Do you mean your fictional credit rating that no one sees isn't the best, or that you have a dodgy credit history?

AnotherJoe

Peterrabbit wrote: »

When we remortgage in 3 years for the money we owe to friend and at the moment our credit rating isn’t the best, are mortgage lenders going to look at us even though we own part of the house? Thanks for your reply

You own all the house. You also owe money to someone, but that doesn't mean they own part of the house on a gradually decreasing % as you pay off more.

Whether someone will loan you money for a new mortgage depends on your income, the value of the house, how much you want, and your credit history but not your credit "score".

Peterrabbit

Dodgy credit history... but we earn between us 45k a year but trying also to clear our debt.

getmore4less

What happens if you can't raise funds through a mortgage?

what will your estimated LTV be and amoun outstanding in 3 years?

What is in the credit files that will still be there in 3 years.
what other debts are there any on DMP

AnotherJoe

Peterrabbit wrote: »

Dodgy credit history... but we earn between us 45k a year but trying also to clear our debt.

Your debt, if you mean other than the private mortgage, isn't something you mentioned in your first post?