Joint mortgage with DRO

tommyandjonny1

Any advice would be very much appreciated.

I went through a DRO (July 2020) and was discharged from this the following year. I have recently got married and we are looking at buying a new house. My husband has a very good credit rating and we have £130k equity in his current property to put down on our next house.

Will i be able to get a mortgage with him or is the reality going to be that he’ll have to get one on his own?

kingstreet

You will, at a price.

A DRO or IVA only satisfied in the last two years is going to see a rate of over 8%.

ACG

I think you might be looking at something closer to 6.5% with a 30% deposit with 1 lender. If that failed, then it is likely to be 8-10%.

tommyandjonny1

Obviously we have over 50% deposit will that help lower the rate?

ACG

No. There is not a huge demand for mortgages less than 3 years discharged so product range is pretty slim.

tommyandjonny1

ok thank you 😊. So its 3 years since discharged rather than 3 years from when the order was placed?

ACG

Like anything in our indistry, every lender is different. There are some lenders who will work off the registration date, but I dont think there are any who will do 3 years from registration.

You have maybe 3-4 lenders who want it discharged.

A few more 1 year discharged,

Quite a few more at 3 years discharged. - The rates typically only start to get reasonable at this point.

1-2 at 6 years registered (usually 5 years discharged),

Most kick in at 6 years discharged.