CAn anyone mortgage "savvy" come and look at this question for me?

4littleone

Hi Ladies and gents,

My partner and i have a 2 yr fixed rate interest only mortgage that ends october this yr.
It is solely in his name at a multiple of 5.5 x his salary
The mortgage outstanding is 187k aprox. We put down a 10% deposit.
We want to remortgage at the end of term with my name added to the mortgage.

The issues are;
1. My credit rating is awful. I will be debt free by June this year but have an old ccj that will still be on my record. (it will be clear though)
2. Partner refuses to go on electoral register and has very little credit history.

Both of us earn a very good salary. Household income is approx £85k per annum.

Are we going to be refused a mortgage with me as an applicant (ie am i a hopeless case)
Is the partner likely to be refused without me as an applicant due to the huge multiple?

Salary split is 60/40 with me being the higher earner.

Please let me know what your thoughts are. I am panicing. I really need to get on the mortgage as we are unmarried but have lived together for over three yrs now so i would have no claim at all if we split.
That sounds alot more mercenary than it actually is if you see what i mean!

minimike2

Its going to depend on the value od the property when you apply. It doesnt matter what deposit you put down to start with, the LTV goes on the situation at the time.

Can I ask why he refuses to go on the electoral roll? Madness if you ask me, its the easiest thing you can do to get a bit more of a boost. Some lenders really do not like it if you are not registered.

The affordability sounds like it shouldnt be a problem, your issue is going to be what product you will fit onto. Get a copy of your credit files, make sure any information is correct, especially to make sure the CCJ shows as satisfied, then at about June time get your self to a broker to start sourcing a deal. You could even start now if you wanted to, as most lenders these days produce offers that last at least six months.

Tiddler_2

You don't say who your current mortgage is with, but the lender could offer a new deal so you don't need to remortgage and therefore avoid any complications through the LTV being above an acceptable level.

With the mortgage market being as it is at the moment, adding yourself onto the mortgage could see you having to accept a higher interest rate, due to the previous CCJ. It could be different by October but I wouldn't bank on it.

4littleone

Thanks for your replies guys, much appreciated.

The house is currently valued at £215k with a mortgage outstanding of £187k.
I have no idea why partner won't go on electoral register. He's quite funny about money, refuses to use standing orders or direct debits for anything other than the mortgage as he thinks "people" will be able to "see" his bank account!!:rotfl:
I agree he is mad not to do this!

So in essence, it looks like i am going to be able to get on the mortgage but we will probably be offered a higher interest rate then.
We were with GE MOney but they changed their name about 6 months ago. The name escapes me at the moment but i'll look it up tonight.

Thanks for putting my mind at rest. I actually thought i wouldn't be able to get on the mortgage at all.

minimike2

First National? iGroup?