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  • FIRST POST
    • Steviev
    • By Steviev 13th Jun 19, 11:41 AM
    • 13Posts
    • 2Thanks
    Steviev
    Joint mortgage help
    • #1
    • 13th Jun 19, 11:41 AM
    Joint mortgage help 13th Jun 19 at 11:41 AM
    Hi all,
    Basically we are looking at moving house soon, our story is, 4 years ago we had to sell and move out of my wifes house and bought a shared ownership house in my name, due to being on interest only and not being in any financial state to be able to remortgage together as we also couldn't be financially tied because my wife had been left with a load of debt by an ex, and ended up with defaults on her credit file and creditors had taken over her debts. She was on payplan but for a couple years now shes had to handle the debt herself direct to the creditors. She still owes quite alot back but after recently checking her credit file there is no sign of these debts at all and seems to have quite a clean file on equifax and Experian which were going to work on getting her score up to a good level.

    I also have credit card debt which were working hard on reducing but do I have a very good credit score.

    We are now in a good position to buy a house as I'm in a better paid job and she has just started a new job recently which has boosted out income up quite alot.

    My questions are,
    even though her credit file is clean of debts she still owes to her creditors, are we able to carry on and apply for a mortgage together without disclosing these debts seeing as theres no record of them for the mortgage lenders to see?

    She gets settlement offers from the creditors of around 65% off, is it better to pay these off with the offers with a credit card to clear them before getting a mortgage?

    And does owing £10k on credit cards make a big difference to getting a mortgage? We have alot of disposable income so that is in our favour.

    Buying a house together will give us a house that we so desperately want with our 6 year old boy. And with the research I've done we could get a large enough mortgage to move together.

    I hope I've made enough sense in our position. Any advice will be great to hear.

    Many thanks in advance.
Page 1
    • Steviev
    • By Steviev 16th Jun 19, 3:17 PM
    • 13 Posts
    • 2 Thanks
    Steviev
    • #2
    • 16th Jun 19, 3:17 PM
    • #2
    • 16th Jun 19, 3:17 PM
    Is there anyone who could shed some light on our issue please?
    • MovingForwards
    • By MovingForwards 16th Jun 19, 3:22 PM
    • 2,311 Posts
    • 2,737 Thanks
    MovingForwards
    • #3
    • 16th Jun 19, 3:22 PM
    • #3
    • 16th Jun 19, 3:22 PM
    Not disclosing debts which are obviously being paid is mortgage fraud.

    Creditors will probably not accept a CC payment for clearing a balance / making F&f offers.

    As you both now have a good income, get offers made to paid to the creditors, then think about a house, alternatively speak with an adverse credit mortgage broker about what options are available.

    £10k on a CC might, or might not, make a difference to the mortgage application, all lenders have their own requirements.
    • RonoB
    • By RonoB 16th Jun 19, 3:25 PM
    • 38 Posts
    • 22 Thanks
    RonoB
    • #4
    • 16th Jun 19, 3:25 PM
    • #4
    • 16th Jun 19, 3:25 PM
    Hello. I am not a mortgage advisor so cannot offer any advice professionally. However if you have a deposit for a mortgage my advice is to print of both your credit files and go and see an independent mortgage advisor. You will most likely get a mortgage but may be sub prime. Maybe not. You haven nothing to lose and they will give best advice from your files. Then they will know who to apply for an agreement in principle. They may also advise to wait and try and settle certain cards first but having wasted time in the past worrying due to a similar circumstances in the recession. We wasted 2 years renting and we could easily have had a mortgage.
    • Thrugelmir
    • By Thrugelmir 16th Jun 19, 3:52 PM
    • 64,850 Posts
    • 57,216 Thanks
    Thrugelmir
    • #5
    • 16th Jun 19, 3:52 PM
    • #5
    • 16th Jun 19, 3:52 PM
    She gets settlement offers from the creditors of around 65% off, is it better to pay these off with the offers with a credit card to clear them before getting a mortgage?
    Originally posted by Steviev
    Tackle the outstanding debts as your first priority. Non disclosure will cause untold damage to both your reputations. Financial companies share their data.

    https://www.nhunter.co.uk/
    “If the financial system has a defect, it is that it reflects and magnifies what we human beings are like. Money amplifies our tendency to overreact, to swing from exuberance when things are going well to deep depression when they go wrong. Booms and busts are products, at root, of our emotional volatility.”
    ― Niall Ferguson
    • Steviev
    • By Steviev 18th Jun 19, 10:48 AM
    • 13 Posts
    • 2 Thanks
    Steviev
    • #6
    • 18th Jun 19, 10:48 AM
    • #6
    • 18th Jun 19, 10:48 AM
    Thankyou for the replies. Makes sense not keeping the creditors a secret. Were working on paying off as much off the cc as we can now. We dont want to waste more time but need to get s few things in place now.

    What are the opinions of the market at the moment? Is it a good buying market? We have a 3 bed with a garage new build (4 years old) which were expecting to have increased alot in value so we hopefully have a good deposit in equity. I a bit afraid to wait 12 months if it's going to drop.

    Thanks again for you advise.

    Also if me and my wife applied for a mortgage/in principle but didnt end up taking the mortgages out would this still make us financially associated because we applied together?
    Last edited by Steviev; 18-06-2019 at 11:12 AM.
    • MovingForwards
    • By MovingForwards 18th Jun 19, 1:29 PM
    • 2,311 Posts
    • 2,737 Thanks
    MovingForwards
    • #7
    • 18th Jun 19, 1:29 PM
    • #7
    • 18th Jun 19, 1:29 PM
    Your property may not have increased in value much as initially new builds are overpriced to start with and it's mainly interest which is paid off for the first few years.

    https://forums.moneysavingexpert.com/showthread.php?t=6015167

    Gives a bit more background on OP. No disrespect Steviev but it makes it easier for people to offer advice if they have all the information.

    Have a chat with an adverse credit mortgage broker as they will be able to offer you good advice as to what is, and isn't, realistic based on your full circumstances.

    Having debts/defaults/DMP for token payments isn't going to work in your favour.

    Having debts/defaults/DMP for reasonable payments will open up the market a bit.

    Get your partner to join up, or post on her behalf with all the info (debt+monthly payment+default date and whether it's satisfied or not), will enable the brokers to provide a bit of relevant information and guidance.

    There is a lot of information we can provide you, but we can't do it with sketchy information I'm afraid.
    • Steviev
    • By Steviev 19th Jun 19, 8:46 AM
    • 13 Posts
    • 2 Thanks
    Steviev
    • #8
    • 19th Jun 19, 8:46 AM
    • #8
    • 19th Jun 19, 8:46 AM
    Your property may not have increased in value much as initially new builds are overpriced to start with and it's mainly interest which is paid off for the first few years.

    https://forums.moneysavingexpert.com/showthread.php?t=6015167

    Gives a bit more background on OP. No disrespect Steviev but it makes it easier for people to offer advice if they have all the information.

    Have a chat with an adverse credit mortgage broker as they will be able to offer you good advice as to what is, and isn't, realistic based on your full circumstances.

    Having debts/defaults/DMP for token payments isn't going to work in your favour.

    Having debts/defaults/DMP for reasonable payments will open up the market a bit.

    Get your partner to join up, or post on her behalf with all the info (debt+monthly payment+default date and whether it's satisfied or not), will enable the brokers to provide a bit of relevant information and guidance.

    There is a lot of information we can provide you, but we can't do it with sketchy information I'm afraid.
    Originally posted by MovingForwards
    That's fair enough. It's difficult to go into such details when it's for someone else but shes happy for me to get advice on her behalf as shes not in a good place with them and her health is affected greatly by extra stress. I can carry the load for her and if I can see a light at the end of the tunnel then that puts us in a good place that we know theres some way out.

    I'll gather up some more info and come back with it. On both posts 🙂
    • Jmaho
    • By Jmaho 20th Jun 19, 2:28 PM
    • 17 Posts
    • 20 Thanks
    Jmaho
    • #9
    • 20th Jun 19, 2:28 PM
    • #9
    • 20th Jun 19, 2:28 PM
    There will be a question on the application about previous credit problems. You must be honest about this regardless of time frames. Many lenders will assess the risk and look at your current position and will proceed. Some won't. If you lie and it is found out (we generally will find out) it's fraud and that's a whole path you don't want to go down
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