Bad credit and other mortgages

tylery

I want to move into a property worth about £400,000. I have a deposit of about £200,000, but I have bad credit. I have a relative who is willing to get a mortgage for me, and I will make the repayments, although he doesn’t own a home. What is the best approach? We were thinking of a Joint Borrower Sole Proprietor (JBSP) mortgage. Do you think this would be the best option?

ACG

JBSP mortgages are geared up for people who cant afford the mortgage. They are not there to overcome bad credit. 

Is your income enough for the mortgage? (Probably needs to be around £45-50k). 
What bad credit do you have? If it is a one off default, you might still be able to get normal rates. 

born_again

Talk to a broker. They will be best placed.

Your relative needs to be aware that if you take this approach. Should they wish to buy their own property. They will no longer be a 1st time buyer.

ACG

born_again said:

Talk to a broker. They will be best placed.

Your relative needs to be aware that if you take this approach. Should they wish to buy their own property. They will no longer be a 1st time buyer.

JBSP means they are only on the mortgage, not on the deeds. So would/should (just covering my back) be classed as first time buyers. 

tylery

ACG said:

JBSP mortgages are geared up for people who cant afford the mortgage. They are not there to overcome bad credit. 

Is your income enough for the mortgage? (Probably needs to be around £45-50k). 
What bad credit do you have? If it is a one off default, you might still be able to get normal rates. 

Yes i am about to start a £45k job. I have several defaults i am on a dmp, but we have to move we have a severely disabled child. What other options do i have?

ACG

tylery said:

ACG said:

JBSP mortgages are geared up for people who cant afford the mortgage. They are not there to overcome bad credit. 

Is your income enough for the mortgage? (Probably needs to be around £45-50k). 
What bad credit do you have? If it is a one off default, you might still be able to get normal rates. 

Yes i am about to start a £45k job. I have several defaults i am on a dmp, but we have to move we have a severely disabled child. What other options do i have?

Speak to a broker. There seems to be a lot of niggly bits to this. The way that I sort of describe it is:
We can do a DMP. 
We can do a new job. 
We can do x, y OR z. 
But trying to do x, y AND z is where things start to become a little complicated. 

In your case (at a guess):
A DMP - fine. 
A new job - fine. 
A gap in employment (if there has been one) - fine. 
Probationary period - fine. 

But all of them together and the pool of lenders available starts to reduce. 

You say your income is £45k. Getting 4.5x income if that is your only income could be another stumbling block. If there is some benefit income, that may help but it depends on the benefit type, the age of your child and whether the lenders who will do a new job and a DMP will also accept benefit income. 

I am not trying to make this sound like a bigger job than it is. Your deposit will help massively and I would like to think there is a solution. But really you probably need to sit down with a broker, work out all of the niggly bits and then the broker can crack on with the research knowing everything. 

tylery

ACG said:

tylery said:

ACG said:

JBSP mortgages are geared up for people who cant afford the mortgage. They are not there to overcome bad credit. 

Is your income enough for the mortgage? (Probably needs to be around £45-50k). 
What bad credit do you have? If it is a one off default, you might still be able to get normal rates. 

Yes i am about to start a £45k job. I have several defaults i am on a dmp, but we have to move we have a severely disabled child. What other options do i have?

Speak to a broker. There seems to be a lot of niggly bits to this. The way that I sort of describe it is:
We can do a DMP. 
We can do a new job. 
We can do x, y OR z. 
But trying to do x, y AND z is where things start to become a little complicated. 

In your case (at a guess):
A DMP - fine. 
A new job - fine. 
A gap in employment (if there has been one) - fine. 
Probationary period - fine. 

But all of them together and the pool of lenders available starts to reduce. 

You say your income is £45k. Getting 4.5x income if that is your only income could be another stumbling block. If there is some benefit income, that may help but it depends on the benefit type, the age of your child and whether the lenders who will do a new job and a DMP will also accept benefit income. 

I am not trying to make this sound like a bigger job than it is. Your deposit will help massively and I would like to think there is a solution. But really you probably need to sit down with a broker, work out all of the niggly bits and then the broker can crack on with the research knowing everything. 

Any recommended brokers here on MSE? You can inbox thats ok.

tylery

tylery said:

ACG said:

tylery said:

ACG said:

JBSP mortgages are geared up for people who cant afford the mortgage. They are not there to overcome bad credit. 

Is your income enough for the mortgage? (Probably needs to be around £45-50k). 
What bad credit do you have? If it is a one off default, you might still be able to get normal rates. 

Yes i am about to start a £45k job. I have several defaults i am on a dmp, but we have to move we have a severely disabled child. What other options do i have?

Speak to a broker. There seems to be a lot of niggly bits to this. The way that I sort of describe it is:
We can do a DMP. 
We can do a new job. 
We can do x, y OR z. 
But trying to do x, y AND z is where things start to become a little complicated. 

In your case (at a guess):
A DMP - fine. 
A new job - fine. 
A gap in employment (if there has been one) - fine. 
Probationary period - fine. 

But all of them together and the pool of lenders available starts to reduce. 

You say your income is £45k. Getting 4.5x income if that is your only income could be another stumbling block. If there is some benefit income, that may help but it depends on the benefit type, the age of your child and whether the lenders who will do a new job and a DMP will also accept benefit income. 

I am not trying to make this sound like a bigger job than it is. Your deposit will help massively and I would like to think there is a solution. But really you probably need to sit down with a broker, work out all of the niggly bits and then the broker can crack on with the research knowing everything. 

Any recommend brokers here on MSE? You can inbox thats ok.

The main reason we are moving is my child (space) yes we can add some benefit income. 

ACG

Its just dependent on the lender. Some will accept benefit income, but typically only certain types and in certain circumstances. If your child is 13+ for example, most if not all will not include it.