buying a house and financial association with another person - advice needed please!!

ChillyP

Hi, of 25% 

I am posting this on behalf of my sister in law. 

She is looking to move house in order to be nearer to family. This means that she will need a new mortgage. She currently lives in a house worth 250K with a remaining mortgage of 40K. She would be looking to use the equity as a deposit towards the new house ,which is likely to cost between £280-300k, so a mortgage of around 70-90k and a LTV of 25%ish - hope that makes sense!!

The mortgage and property will be in her name only, however she has a partner that she is financially associated with. He has had some issues with debt and subsequently, his credit file has been impacted. He has no defaults or CCJ's. however he does have several missed payments and also 3 sets of arrangement to pay markers. These are all for debts that are solely in his name. My Sister in law is not directly linked to any of these debts. 

They do however have a joint account that they both pay into. They have also previously had a joint loan, however this is now paid off. There have been no issues with either of these accounts. 

Sister in has an excellent credit history with no late payments/missed payments etc.

Her concern is whether or not her financial association with her partner will impact her when she goes through the full credit check. She won't have any issues regarding affordability as she has a very well paid job and sensible outgoings. 

Is this likely to be an issue for her?

ACG

With some lenders yes. With others not so much. 
It does not necessarily mean it will cost more in the sense of specialist lenders. But it might mean she can not go to the cheapest lender and might have to drop down a few and pay maybe an extra £5-10 a month (worst case scenario I think). 

ChillyP

ACG said:

With some lenders yes. With others not so much. 
It does not necessarily mean it will cost more in the sense of specialist lenders. But it might mean she can not go to the cheapest lender and might have to drop down a few and pay maybe an extra £5-10 a month (worst case scenario I think). 

well that's reassuring, thank you. As far as she is aware it is just late payments and AP markers. I have suggested that she asks permission to see his credit report, but I am not sure if this will happen. Would a default in his name lead to further problems? I am just thinking worst case scenario - in case he isn't giving her the full picture. 

ACG

If you go with a lender who does not worry about the financial associations, it wont matter if they have late payments, defaults or even bankruptcy. The financial associate is being ignored. 

So I would not worry too much. 

kingstreet

I've recently done such a case with assistance from Mr ACG after it failed credit score with Nationwide and Halifax.

ChillyP

kingstreet said:

I've recently done such a case with assistance from Mr ACG after it failed credit score with Nationwide and Halifax.

Did it all go through ok?

ACG

kingstreet said:

I've recently done such a case with assistance from Mr ACG after it failed credit score with Nationwide and Halifax.

Thats one way to describe it I suppose 

kingstreet

ChillyP said:

kingstreet said:

I've recently done such a case with assistance from Mr ACG after it failed credit score with Nationwide and Halifax.

Did it all go through ok?

Do you think I would have mentioned it if it didn't...?

kingstreet

ACG said:

kingstreet said:

I've recently done such a case with assistance from Mr ACG after it failed credit score with Nationwide and Halifax.

Thats one way to describe it I suppose 

It was your suggestion and it worked!