Will a Declaration of Trust effect my mortgage application?

Thrugelmir

Would help to understand what the nature of your credit issues are. Why it's not possible for you to be party to the mortgage. If the mortgage is affordable on your partners earnings alone then your position may not be so problematic. 

anon1311

Thrugelmir said:

Would help to understand what the nature of your credit issues are. Why it's not possible for you to be party to the mortgage. If the mortgage is affordable on your partners earnings alone then your position may not be so problematic. 

No CCJ’s, DMP in place.. paying off debts in lump sums just brought 3 below the agreed credit limit recently. However Experian says “poor credit score” 

Thrugelmir

anon1311 said:

Thrugelmir said:

Would help to understand what the nature of your credit issues are. Why it's not possible for you to be party to the mortgage. If the mortgage is affordable on your partners earnings alone then your position may not be so problematic. 

No CCJ’s, DMP in place.. paying off debts in lump sums just brought 3 below the agreed credit limit recently. However Experian says “poor credit score” 

Why haven't you used your savings to (at least partially) settle your debts?  Treating a DMP as an interest free loan isn't the way to endear yourself to finance companies. Improving your credit profile is in your own hands. 

MovingForwards

Thrugelmir said:

anon1311 said:

Thrugelmir said:

Would help to understand what the nature of your credit issues are. Why it's not possible for you to be party to the mortgage. If the mortgage is affordable on your partners earnings alone then your position may not be so problematic. 

No CCJ’s, DMP in place.. paying off debts in lump sums just brought 3 below the agreed credit limit recently. However Experian says “poor credit score” 

Why haven't you used your savings to (at least partially) settle your debts?  Treating a DMP as an interest free loan isn't the way to endear yourself to finance companies. Improving your credit profile is in your own hands. 

If you use your savings to clear the DMP do it through the charity who is running your DMP as if you do it yourself a lender will see it as being a failed DMP. 

Have a chat with am adverse mortgage broker and see what they say is possible.

anon1311

Thrugelmir said:

anon1311 said:

Thrugelmir said:

Would help to understand what the nature of your credit issues are. Why it's not possible for you to be party to the mortgage. If the mortgage is affordable on your partners earnings alone then your position may not be so problematic. 

No CCJ’s, DMP in place.. paying off debts in lump sums just brought 3 below the agreed credit limit recently. However Experian says “poor credit score” 

Why haven't you used your savings to (at least partially) settle your debts?  Treating a DMP as an interest free loan isn't the way to endear yourself to finance companies. Improving your credit profile is in your own hands. 

Because my living conditions currently are unbearable, therefore that is my priority. I will be debt free in the next 2 years as I have a plan in place to clear them which is achievable. But this is currently my priority 

Thrugelmir

anon1311 said:

Thrugelmir said:

anon1311 said:

Thrugelmir said:

Would help to understand what the nature of your credit issues are. Why it's not possible for you to be party to the mortgage. If the mortgage is affordable on your partners earnings alone then your position may not be so problematic. 

No CCJ’s, DMP in place.. paying off debts in lump sums just brought 3 below the agreed credit limit recently. However Experian says “poor credit score” 

Why haven't you used your savings to (at least partially) settle your debts?  Treating a DMP as an interest free loan isn't the way to endear yourself to finance companies. Improving your credit profile is in your own hands. 

Because my living conditions currently are unbearable, therefore that is my priority. I will be debt free in the next 2 years as I have a plan in place to clear them which is achievable. But this is currently my priority 

Appreciate what you are saying. I'm not unsympathetic. Unfortunately any financial contribution you make directly (if not party to the mortgage itself) leaves the lender exposed under the Insolvency Acts. Which is why gifted deposits from unrelated parties fail to meet lenders criteria. Lenders have been in business for a very long time and therefore have seen every trick in the book. If your partner commits fraud in making the application and it comes to light. Then both of you will have badly damaged credit files for which you will both suffer the consequences. 

anon1311

Thrugelmir said:

anon1311 said:

Thrugelmir said:

anon1311 said:

Thrugelmir said:

Would help to understand what the nature of your credit issues are. Why it's not possible for you to be party to the mortgage. If the mortgage is affordable on your partners earnings alone then your position may not be so problematic. 

No CCJ’s, DMP in place.. paying off debts in lump sums just brought 3 below the agreed credit limit recently. However Experian says “poor credit score” 

Why haven't you used your savings to (at least partially) settle your debts?  Treating a DMP as an interest free loan isn't the way to endear yourself to finance companies. Improving your credit profile is in your own hands. 

Because my living conditions currently are unbearable, therefore that is my priority. I will be debt free in the next 2 years as I have a plan in place to clear them which is achievable. But this is currently my priority 

Appreciate what you are saying. I'm not unsympathetic. Unfortunately any financial contribution you make directly (if not party to the mortgage itself) leaves the lender exposed under the Insolvency Acts. Which is why gifted deposits from unrelated parties fail to meet lenders criteria. Lenders have been in business for a very long time and therefore have seen every trick in the book. If your partner commits fraud in making the application and it comes to light. Then both of you will have badly damaged credit files for which you will both suffer the consequences. 

He has all the money for a deposit without me contributing regardless. Am I supposed to let him put the full deposit down then and then get a declaration of trust if I contribute towards the mortgage every month.. or a charge against the house? I’ve heard different things from various solicitors and mortgage advisors. What is your profession??

John_

anon1311 said:

Thrugelmir said:

anon1311 said:

Thrugelmir said:

Would help to understand what the nature of your credit issues are. Why it's not possible for you to be party to the mortgage. If the mortgage is affordable on your partners earnings alone then your position may not be so problematic. 

No CCJ’s, DMP in place.. paying off debts in lump sums just brought 3 below the agreed credit limit recently. However Experian says “poor credit score” 

Why haven't you used your savings to (at least partially) settle your debts?  Treating a DMP as an interest free loan isn't the way to endear yourself to finance companies. Improving your credit profile is in your own hands. 

Because my living conditions currently are unbearable, therefore that is my priority. I will be debt free in the next 2 years as I have a plan in place to clear them which is achievable. But this is currently my priority 

Then you have to understand that lenders will see that you out living a nicer lifestyle ahead of paying back what you owe, and are able to decide for themselves whether to lend to you or not.
It’s not a good look, having the money to pay off your debts but keeping it.

[Deleted User]

anon1311 said:

Hi, looking for advice. 

Me and my partner are buying a house 50/50.. however he has a very good credit score and mine isn’t very good. Therefore we are thinking of putting the house in his name and then getting a declaration of trust which would entitle me to 50% of the equity, 50% of the house and 50% of the deposit. However.. will this effect the mortgage he is offered as if we defaulted on the mortgage payments, the home could not as easily be repossessed? Can you write something into the declaration of trust which would mean that if it does default they are entitled to your half too? (I am fine with that) and therefore wouldn’t effect your mortgage application. Thank you in advance. 

It's not your mortgage application though, is it?  It's your partner who will be applying for the mortgage, not you.  Most, if not all, mortgage lenders will have an issue with you being a beneficial owner (supplying part of the deposit and living in the property) whilst not being party to the mortgage.  The only way around this that I can see would be finding a lender who will accept this scenario or you keep your money or your partner buys in his name only with no financial input from you.

Your DoT makes no sense as half the equity, half the house and half the deposit means you are at least double counting the same money.  

[Deleted User]

anon1311 said:

kuratowski said:

Not necessarily.  There are some brokers who post on here and they often say a case is place-able at market rates.  How bad is your history?

No CCJ’s, DMP in place. A couple of Defaults but gradually paying things off in lump sums, credit score is poor however.

There's no such thing as a universal credit score.  No lender is going to give a fig what score a credit reference agency is giving you.  It's your credit history a lender is interested in.

https://www.moneysavingexpert.com/loans/credit-rating-credit-score/