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  • FIRST POST
    lainyone
    Can anyone help me get a mortgage?!!
    • #1
    • 1st Nov 09, 1:30 PM
    Can anyone help me get a mortgage?!! 1st Nov 09 at 1:30 PM
    I have recently married and my husband has bad credit - a CCj was awarded in June which we are appealing but it doesnt look promising.

    My parents currently own the property we are in but will give us the profit they make on it when we sell, so that we can use this as a deposit- probably about 17k

    I earn 18k, my partner earns 16k and we have found a new house we want for 140k. The builders are willing to do shared equity, leaving us to find a deposit of 6k and a mortgage of 113k

    My sister-in-law may be willing to apply for my husbands half of the mortgage as she earns 100k - but is she allowed to do that if she's not going to live in the house?

    I think it is best if my husband is left out of it but I can't get the full amount on my salary alone.

    Does anyone have any advice?:confused:
Page 1
    • brit1234
    • By brit1234 1st Nov 09, 2:08 PM
    • 5,191 Posts
    • 11,968 Thanks
    brit1234
    • #2
    • 1st Nov 09, 2:08 PM
    • #2
    • 1st Nov 09, 2:08 PM
    My advice is not to buy shared ownership, they are over priced and property prices are about to fall. Better off renting and saving a bigger deposit then get the property cheaper.
    Scams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.

    Save our Savers
  • herbiesjp
    • #3
    • 1st Nov 09, 2:14 PM
    • #3
    • 1st Nov 09, 2:14 PM
    With your husband on the mortgage with a CCJ, you would need a far higher deposit, and you would only be eligible for higher rates

    On your own income you will not be able to do this.

    So you can either look at a guarantor scenario(with a parent) or with a third party like your SIL.

    You would definitely fall outside of criteria with a lot of lenders, so you would probably be better off going via a whole of market adviser
    I am a Mortgage Adviser

    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • lainyone
    • #4
    • 1st Nov 09, 2:29 PM
    • #4
    • 1st Nov 09, 2:29 PM
    Brit1234 -

    Do you think I should apply for the 140k if I was to go for a mortgage with his sister in law?

    Also a financial adviser I spoke to said that lenders would ask questions of why she wasn't living in the property - is that correct?
  • herbiesjp
    • #5
    • 1st Nov 09, 2:32 PM
    • #5
    • 1st Nov 09, 2:32 PM
    Brit1234 -

    Do you think I should apply for the 140k if I was to go for a mortgage with his sister in law?

    Also a financial adviser I spoke to said that lenders would ask questions of why she wasn't living in the property - is that correct?
    Originally posted by lainyone

    With SIL should be fine due to her income.

    It would depend on the whole scenario i.e. her commitments/mortgage situation, but some lenders would still be happy with the situation.
    I am a Mortgage Adviser

    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • brit1234
    • By brit1234 1st Nov 09, 2:40 PM
    • 5,191 Posts
    • 11,968 Thanks
    brit1234
    • #6
    • 1st Nov 09, 2:40 PM
    • #6
    • 1st Nov 09, 2:40 PM
    Brit1234 -

    Do you think I should apply for the 140k if I was to go for a mortgage with his sister in law?

    Also a financial adviser I spoke to said that lenders would ask questions of why she wasn't living in the property - is that correct?
    Originally posted by lainyone
    I'm unsure about the sister thing. In todays climate lenders are looking at great detail and fogging off borrowers for the smallest reason.

    All I would advise is wait and save. You won't miss the boat and it may save you negative equity especially with shared equity.
    Scams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.

    Save our Savers
  • lainyone
    • #7
    • 1st Nov 09, 2:49 PM
    • #7
    • 1st Nov 09, 2:49 PM
    The problem is I am trying to move to this particular area for my sons school and have to put his name down in January, so waiting and saving isn't ideal.

    With the shared equity - we have between 2-10years to buy their share back - if prices are going to fall does that not mean we would save money?
  • newrecruit
    • #8
    • 2nd Nov 09, 6:52 AM
    • #8
    • 2nd Nov 09, 6:52 AM
    Firstly, congratulations for your recent marriage
    As far as I am aware, since you are married, your husband's credit score will affect yours.
    When you apply for a mortgage, you will be required to declare your partners (your husband's) details. Even if you didn't, you will still be required to inform the mortgage company that he will be living with you. It differs from a lender to a lender, but you still need to apply for a permission to allow someone to come and live with you, and at this point, you will be asked to declare what is your relation to this person. Hence, back to square one and you will be questioned as to why you have not declared his detail before.

    Some people may look upon what you trying to do as committing a fraud, so be careful

    On happier note, as long as your husband keep up with the repayment agreed by the court, and he does not default on any other loan repayments, his CCJ will disappear after 6 years.

    Why not your SIL buy the house out right and let it out to you? And after 6years seek a legal advise in transferring the deed of your house to you and your husband's name.
    I feel that your SIL may need to get buy to let mortgage, which may affect your deposit situation. You need to discuss all of this with your SIL.
    It is also worthwhile getting a legal agreement between you, your husband and SIL, because if you or your husband defaults on mortgage repayment, there must be a clear understanding that what should happen, becasuse this is not a usual rental agreement and you do not want to be evicted by SIL, even though you may have a amicable relationship with her now.
    Also (I hate to say this), but you need an agreement outlining as to what should happen if you and your husband divorce during this period.

    An alternative is for your SIL to help your husband to pay off the CCJ and contact Experian to amend the credit score accordingly. CCJ will not disspear but his credit score will change dramatically, and this will have surprising positive effect. (This is based on experience of a friend) It is worthwhile contacting Experian as regards to your husbands's credit score before you do this.

    The only other way is to shop around, talk to the mortgage advisers here on the forum to get the best deal for you and your husband under the circumstances.
    It will be more expensive, but there are lenders out there who will give you mortgage despite your husband CCJ.

    Good Luck
    • Let Us See
    • By Let Us See 2nd Nov 09, 10:35 AM
    • 1,319 Posts
    • 472 Thanks
    Let Us See
    • #9
    • 2nd Nov 09, 10:35 AM
    • #9
    • 2nd Nov 09, 10:35 AM
    With all the various factors and possible options find yourself an indpendent whole of market mortgage adviser and let them do all the work. All you need to do is tell the truth concerning your predicament.
    • Conrad
    • By Conrad 2nd Nov 09, 11:30 AM
    • 31,494 Posts
    • 55,821 Thanks
    Conrad
    SIL may be possible. If she has an existing mortgage the new lender will want to know that her current home is to be let out, however, 1 or 2 lenders might allow her to have a 'second' home meaning they wont want proof the current home is to be let out.
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