Single mortgage application with second income.

LL198585

Hi all.

Quick question.

Looking to buy our first house. We have the deposit just struggling for a mortgage because of my credit history.

My partner has perfect credit history and rating but a low income and I have a rubbish history and have a default due to come off my account 12th June 2020 but I have a really good income.

So can my partner applied for mortgage and use me as second income or will it go on the lowest credit rating which is mine.


Thanks in advance

ACG

You cant use your income if you are not going on the mortgage.

If you split up you can walk away from the mortgage with no liability and your partner is left with a mortgage they can not afford.

If your only issue a 5 and a half year old default? If it is, speak to a broker. I would expect you to be able to overcome that all day long, possibly with normal rates, possibly a touch above normal rates depending on the details.

Thrugelmir

LL198585 wrote: »

Looking to buy our first house. We have the deposit just struggling for a mortgage because of my credit history.

Have you sought advice from a mortgage broker?

LL198585

Yes I’m waiting to here back from a bad credit mortgage broker. He thought APR would be 6.7% for 2 years with a 30% deposit which if that was best option I’d happily go for it. I just wanted to see if there was another option.

Thanks for all replies I appreciate it

[Deleted User]

LL198585 wrote: »

Yes I’m waiting to here back from a bad credit mortgage broker. He thought APR would be 6.7% for 2 years with a 30% deposit which if that was best option I’d happily go for it. I just wanted to see if there was another option.

Thanks for all replies I appreciate it

That rate sounds very high if the only adverse thing on your credit file is a 5 year old default. Has this broker seen copies of your credit files?

LL198585

Sorry I should of said, I had a default that went into a trust deed that will be fully off my file in June. But yeah they have seen both mine and my partners credit file.

ACG

Ahhh, Scotland and Insolvency - that makes a big difference.
When did you enter/finish the Trust Deed, I know the lender they are looking at from the rate and I know they charge a 1% surcharge for Insolvency.

I dont know enough about Trust Deeds as we rarely come across them so you may not need to pay the surcharge, but it is easy to be caught out by it so best to know upfront.

LL198585

Start date trust deed 12th June 2014. End date 12th June 2018. Discharged and settled April 2019. I thought it was November 2018 I was fully discharged but apparently it’s April.

ACG

Dont hold me to this as I could be wrong, but there could be a 1% surcharge on that rate you have been given. It might be worth just asking them to double check.

LL198585

Still no word back so have no idea if he’s even found a lender for us. But if I do I’ll ask about 1%, thanks for the info