Mortgage/loan advice with credit issues !

anniemc89

Hi there would really appreciate some advice ! My partner and I are currently renting from my mum. We need a larger house due to recently having our third baby.
My mum is gifting us £40000 cash and also approximately £40,000 equity from the sale of the house we are currently in. 

The houses in our area that we would be looking to buy would require an additional £30000 mortgage loan.
The problem is my partner had a mortgage with a previous girlfriend that although he has not been with for 10 years, he only got his name removed from in October 2019. His credit rating is now excellent however the after we were pre approved for a mortgage we were told his history of his last mortgage would be a problem for a few years to come. Are there any options given the relatively small mortgage we require as we have a very large cash deposit ? Or any other kind of loan ? Thank you 😊 

moneysavinghero

A mortgage broker will probably be able to find you a mortgage provider that will take you on. Interest rate may be a little higher, but on a £30,000 mortgage it's not that much of a problem.

AdrianC

Having had a mortgage on a previous property isn't, in itself, a credit "issue". So what's the rest of the story around that...?

£30k should be above the minimum mortgage amount for most lenders, and - as you say - at 27% LtV, it should be relatively straightforward.

What's your household income? I'm thinking in terms of repayment affordability given that you, presumably, have a single income feeding five mouths...

anniemc89

Thanks for replying. My partner earns 23000 a year, I only earn 6000 and I’m currently on maternity leave. The issue with his old mortgage is that it was in arrears. Don’t know how I left out that important detail ! The arrears were paid off last year and his ex partner remortgaged the house with her new husband. As I said they have been separated for over ten years but on his credit file it obviously doesn’t look good.

AdrianC

OK, that clarifies it a bit...

Given that you're looking at borrowing about 1x joint income, as well as such a low LtV, they may well be flexible. But a history of him being in arrears on his mortgage (and, yes, it was still HIS jointly and severally with any other borrowers) right up until a year ago...

Angela_D_3

I was told anything is possible it just might be expensive.  So in my case it would cost me £7000 more over a 2 year period but i couldnt rent for £3500 per year so even though i felt s bit robbed it was still worth it if that makes sense? 

MovingForwards

https://forums.moneysavingexpert.com/discussion/6224779/mortgage-loan-with-credit-issues#latest

Also asked on the mortgage board, with the important missing detail. Two brokers have replied, including one who specialises in adverse credit.