Good Credit + Poor Credit = Joint Mortgage?

elle_gee

My partner currently has a £76k NatWest mortgage (which he has never defaulted on) plus various loans, credit agreements and cards totalling a approx £25k debt (which he has defaulted on many recently). Needless to say, he's struggling on a £19k + £4k overtime annual income (approx £1500 take home pay each month).

I have a £3k personal loan (taken out more for £5.5k in March 2005) which I have never defaulted on, plus a £1k credit card debt and approx £8k savings.
Have had a few late payments on credit card and phone bill, but always paid within a few days - just disorganisation. My salary is £18,800 (take home £1100 monthly)

We are considering selling his house and buying something together. Hopefully his house will now be worth at least £20-25k more than when he bought it so that would go a long way to helping with paying off his debts.

However, what is the process with finding a new joint mortgage for us - I've read about sub-prime which I guess would apply to him but not necessarily me. What are the chance of getting a mortgage?

Any help appreciated!

herbiesjp

If you buy in joint names you will make a financial asssociation with him.

If he has adverse credit, you will more than likely need an adverse lender.

The fact that you will be clearing a lot of the debt will be great.

However in the current credit climate, adverse credit lenders are tightening their criteria, and as such increasing the amounts of deposit needed for such loans.

What kind of house prices would yo be looking at? What kind of money would you have for a deposit?

elle_gee

Looking at houses priced £100k minimum to £135k ideally, though I don't know much about how much we would be able to borrow. Deposit in the region of £10k, or possibly more if he doesn't clear all his debt with any profit (just gets them to a more management level).

Can independent mortgage advisers help with sub-prime mortgages or are there specialists which are easy to find?

herbiesjp

Any whole of market adviser should be able to help you.

Beware these "specialists" you see on TV - they offer nothing more than a whole of market adviser, but normally charge hefty fees for the benefit of their advertising

elle_gee

Is it possible to get two mortgages for the same house - one highstreet for me and one sub-prime for him? Would we be able to buy half each of the same house without appearing financially linked and thus his rating affecting mine?

herbiesjp

elle_gee wrote: »

Is it possible to get two mortgages for the same house - one highstreet for me and one sub-prime for him? Would we be able to buy half each of the same house without appearing financially linked and thus his rating affecting mine?

Simple answer is no I'm afraid