5% mortgage and adverse credit

manchester1995

Hello,

I'm praying someone can help me or has been in a similar situation as me! My credit rating is fine, however my partners isn't. He's not an organised person and isn't good when it comes to financial planning but he makes the most money out of us both with his only outgoing being his phone bill each month and paying me a set amount each month. I deal with all household bills and paying the rent, and none of those have ever been late. 

We've been wanting to get a mortgage for about 5 years! And still absolutely no closer to reaching it. He has small CCJs (<£500 each) dated 2016, 2017 and 2018. All were satisfied in March 2019. Since then he has had defaults in 2020, 2021 and 2022. 

I have been told by a mortgage advisor the only way we can get a mortgage is with 15% deposit minimum and that we aren't eligible for any help to buy schemes.

I was really hoping to use the mortgage guarantee scheme, as a 15% deposit on a house in our area give or take 5 miles is £30,000 on a £200,000 house, and that's just not achievable for us when we've been renting.

I am due to have our first baby in November and really wanted to have our first home ready before then, especially because our landlord wont let us decorate and the furnishings just aren't up to scratch really.

Feel like I'm at my wits end.

Thanks

Edi81

Your partner needs to establish why he has defaults from this year and last year when you’ve “been wanting a mortgage for the past 5 years”. This isn’t historic. 

Can you buy on your own without his income? 

manchester1995

Edi81 said:

Your partner needs to establish why he has defaults from this year and last year when you’ve “been wanting a mortgage for the past 5 years”. This isn’t historic. 

Can you buy on your own without his income? 

He isn’t good at managing his finances, so when he does have credit he will forget if it’s not a direct debit. He also was in and out of work during coronavirus which was the reason for the defaults. 

I can only get £120000 based on a lending multiple of 4.5 and round here you’d be lucky to get a run down bedsit for that price. 

Edi81

Doesn’t sound too hopeful at this point. 

rincha

I feel for you but having an excuse that your partner isn’t good with his finances or forgets to pay his bills will NOT cut it with 95% of lenders. Having just one CCJ is terrifying but having almost 1 every single year???

have you tried talking to a specialised broker who deals with bad credit clients? 

Also 120k is not a bad amount and can buy you a nice 1/2 bed apartment but you will have to extend your search area quite a bit maybe? 

The problem is, even if you had 20% deposit you would struggle with all those CCJs. 

K_S

@manchester1995 Unfortunately, from the limited info in your post, the defaults are too numerous and too recent to be able to qualify for a 95% product offered by an adverse/specialist lender.

Thrugelmir

manchester1995 said:

Edi81 said:

Your partner needs to establish why he has defaults from this year and last year when you’ve “been wanting a mortgage for the past 5 years”. This isn’t historic. 

Can you buy on your own without his income? 

He isn’t good at managing his finances, so when he does have credit he will forget if it’s not a direct debit. He also was in and out of work during coronavirus which was the reason for the defaults. 

Will your partner allow you to take total control and manage the household finances? 

Work as a team not individuals.