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    • kahluacupcake
    • By kahluacupcake 13th May 18, 8:44 PM
    • 1Posts
    • 0Thanks
    Bad Credit Mortgages with defaults
    • #1
    • 13th May 18, 8:44 PM
    Bad Credit Mortgages with defaults 13th May 18 at 8:44 PM
    Hi everyone, i'm looking for a bit of advise with regards to our situation. I've done a search but there's nothing similar come up.

    I bought a house in my sole name 8 years ago. I've been with the same lender (halifax) the entire time, never missed a payment. However, we got into a bit of a mess a few years ago, mainly through sheer stupidity and me giving up work to look after our children. I entered into a DMP with Stepchange last year after getting to a point of not being able to keep up minimum payments on credit cards and catalogue accounts and have now got 8 defaults. 2 are due to drop off within the next 18 months. I'm still at home and not working until our daughter starts nursery next April so i'm 110% sure no one will touch me with a bargepole.

    My partner has 1 default which is due to drop off at the end of next year, he's in full time, permanent employment. Is it possible to sell our home and use the proceeds to pay off my debt and gift the remaining 30000 to him for him to purchase a new property for us in his sole name. Would he even be eligible with the 1 default? Our affordability is now fine and we don't want a much bigger mortgage, we just need a bigger home.
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    • ACG
    • By ACG 13th May 18, 8:49 PM
    • 18,294 Posts
    • 9,982 Thanks
    • #2
    • 13th May 18, 8:49 PM
    • #2
    • 13th May 18, 8:49 PM
    Speak to a broker.
    It may be possible to do it in joint names.
    It may only be possible to do it in your partners name.
    But a broker will go through everything in detail and make a recommendation, without knowing more it is difficult to say what your options are.

    I am always reluctant to do mortgages in a sole name for a couple because of bad credit and so are many lenders. Where you are gifting the deposit, if you split up, you could find you have lost 30k.
    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.
    • Homebuyer1973
    • By Homebuyer1973 14th May 18, 11:29 AM
    • 2 Posts
    • 0 Thanks
    • #3
    • 14th May 18, 11:29 AM
    • #3
    • 14th May 18, 11:29 AM
    Hi there

    If you are with Stepchange, I'd definitely get in touch with their financial solutions department as the brokers there specialise in complex lending. We were told by two brokers that we would not get anyone to even consider us. However, I spoke to financial solutions and they managed to get us a DIP and we are now waiting to hear if we have been approved. Hope this helps
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