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    • Womble878
    • By Womble878 10th Nov 18, 7:46 AM
    • 8Posts
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    Womble878
    Mortgage application and bed credit
    • #1
    • 10th Nov 18, 7:46 AM
    Mortgage application and bed credit 10th Nov 18 at 7:46 AM
    Hi looking for some advice on a complicated situation!

    Myself and husband are currently renting but hope to buy a home next year, the problem we have is that his name has been on a mortgage for the past 5 years with his ex partner. When he left, the understanding was that she would get the mortgage transferred into her own name, my husband didn't want anything out of this. In that time she was unable to get the mortgage, and stopped paying it consistently - often leaving it to build arrears for a few months before bringing it up to date. For the past year we have been working with solicitors to get husband's name removed - ex partner has eventually agreed to put the house up for sale and it has had an offer.

    Our problem is our credit score, it is now horrendously low due to the missing payments on this mortgage. We joined credit ladder and our consistent rent payments can now be seen for the last year, but these defaulted mortgage payments can also be seen by lenders!

    Everything else is fine on our reports, we only have one debt of £1250 on a 0% card, this will be paid by April; both been on electoral role at same address for 4 years, all bills and utilities paid on time etc, stayed with the same banks for a number of years. There is one 'satisfied' account on my husband's record from 3 years ago as well I should add.

    We either hope to save a 10% deposit to buy a property up to £150,000 or use the government's help to buy scheme where we only need a 5% deposit (we are in Scotland) to buy a new build. We hope to do this next year and will go through a mortgage broker.

    Has anyone any experience with attaining a mortgage with bad credit history such as this? Any hints or tips would be appreciated also.

    Thanks in advance!

    Womble878
Page 1
    • Tarambor
    • By Tarambor 10th Nov 18, 9:16 AM
    • 4,275 Posts
    • 3,289 Thanks
    Tarambor
    • #2
    • 10th Nov 18, 9:16 AM
    • #2
    • 10th Nov 18, 9:16 AM
    Sadly they're going to have an impact and may stop you getting a mortgage for the next couple of years. You need to find a broker who specialises in people with bad credit but expect that if you are accepted you're going to get stung with the interest rate offered.

    Unfortunately the only healer to a bad credit record is time.
    • Yooks
    • By Yooks 10th Nov 18, 9:50 AM
    • 8 Posts
    • 5 Thanks
    Yooks
    • #3
    • 10th Nov 18, 9:50 AM
    • #3
    • 10th Nov 18, 9:50 AM
    Your credit score doesn’t really matter as it is not seen by lenders at all. What is seen by lenders is your past and how you have managed bills and credit In the past. Obviously defaulted previous mortgage payments will be a huge flag to lenders and more than likely it will stop you from getting a mortgage from more common lenders. Some lenders may just ask for a bigger deposit while some will have sky rocket interest rates.
    • Womble878
    • By Womble878 10th Nov 18, 10:01 AM
    • 8 Posts
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    Womble878
    • #4
    • 10th Nov 18, 10:01 AM
    • #4
    • 10th Nov 18, 10:01 AM
    Thanks for your replies guys. Do you have any idea what is considered high interest rates? I've never bought a property before so just wanting to look at some numbers. I think it may be best for us to try and save a bigger deposit and try again in two years.

    Thanks!
    • Yooks
    • By Yooks 10th Nov 18, 10:16 AM
    • 8 Posts
    • 5 Thanks
    Yooks
    • #5
    • 10th Nov 18, 10:16 AM
    • #5
    • 10th Nov 18, 10:16 AM
    It wouldnít be correct for anyone to throw random interest rates at you as they vary depending on factors like how many people are applying, income, dependencies, other outgoings, if youíre a first time buyer vs previous buyer etc.
    • Womble878
    • By Womble878 10th Nov 18, 10:28 AM
    • 8 Posts
    • 0 Thanks
    Womble878
    • #6
    • 10th Nov 18, 10:28 AM
    • #6
    • 10th Nov 18, 10:28 AM
    It would be both myself and husband applying, we have two children. Husband has had one previous mortgage, this would be my first. We are in a decent financial position, husband's job is between £43000-£50000 per year and he has a work vehicle so no commuting costs. I stay at home with our young children so no childcare or high outgoings, I will be returning part time to work once they are both in funded nursery places so will probably bring home around £7000 per year. I have a second hand car but it is bought outright so no finance. We save regularly for the deposit and have no debt apart from the £1250 which is paid off weekly and will be paid off fully in April. .

    In terms of the mortgage we are not looking to stretch ourselves at all and will be looking at something with a maximum value of £150000 (but would prefer lower) as try to live a frugal life where possible. We also don't plan to have any more children.

    Thanks again.
    • Yooks
    • By Yooks 10th Nov 18, 10:39 AM
    • 8 Posts
    • 5 Thanks
    Yooks
    • #7
    • 10th Nov 18, 10:39 AM
    • #7
    • 10th Nov 18, 10:39 AM
    Again I canít personally give you a rate as it varies on lender but you would be looking at arou d 15% deposit. There is some bad credit mortgage checks you can find via some google searches. They would be more accurate on numbers than members here
    • Womble878
    • By Womble878 10th Nov 18, 11:39 AM
    • 8 Posts
    • 0 Thanks
    Womble878
    • #8
    • 10th Nov 18, 11:39 AM
    • #8
    • 10th Nov 18, 11:39 AM
    Thanks will have a wee look
    • Womble878
    • By Womble878 27th Nov 18, 4:53 PM
    • 8 Posts
    • 0 Thanks
    Womble878
    • #9
    • 27th Nov 18, 4:53 PM
    • #9
    • 27th Nov 18, 4:53 PM
    Hi further to this above, I have seen a property at £85000, i would have a 15% cash deposit available. Would it be possible to get a mortgage in my sole name even though I am a stay at home parent and am married? My credit file is good with no missed payments etc.

    Many thanks.
    • jimbo26
    • By jimbo26 27th Nov 18, 5:45 PM
    • 582 Posts
    • 400 Thanks
    jimbo26
    You really need to see a broker who will advise you. You will not get the answers on here as we.

    a) Don't have access to the mortgage market

    b) Qualified to give mortgage advice

    c) Have no idea of the content of either your or your partners credit file.
    Last edited by jimbo26; 27-11-2018 at 5:48 PM.
    • Womble878
    • By Womble878 27th Nov 18, 5:52 PM
    • 8 Posts
    • 0 Thanks
    Womble878
    I realize that but sometimes it's helpful to see if there have been other people in the same boat and what the outcomes have been! I will be seeing a broker eventually I'm just looking at different options at the minute. It is an internet forum after all for advice on money matters!
    • PrettyKittyKat
    • By PrettyKittyKat 27th Nov 18, 6:04 PM
    • 990 Posts
    • 957 Thanks
    PrettyKittyKat
    You could call an independent broker to get some advice now. Explain you want to look into your financial circs to look at the options so that you are ready and prepared. We did this approx 18 months prior to actually then making a mortgage app. You can be honest and tell them everything, give figures, show them your credit file etc.
    • jimbo26
    • By jimbo26 27th Nov 18, 6:17 PM
    • 582 Posts
    • 400 Thanks
    jimbo26
    Hi further to this above, I have seen a property at £85000, i would have a 15% cash deposit available. Would it be possible to get a mortgage in my sole name even though I am a stay at home parent and am married? My credit file is good with no missed payments etc.

    Many thanks.
    Originally posted by Womble878
    Probably not as you have zero income.
    • Womble878
    • By Womble878 27th Nov 18, 6:28 PM
    • 8 Posts
    • 0 Thanks
    Womble878
    Go and get a hobby Jimbo
    • Womble878
    • By Womble878 27th Nov 18, 6:37 PM
    • 8 Posts
    • 0 Thanks
    Womble878
    Thanks Prettykittycat, glad to hear someone else in similar circumstances. Hopefully I'll be in part time employment by the time we make the mortgage application also as my youngest will be in nursery
    • stephen.rooke
    • By stephen.rooke 27th Nov 18, 6:59 PM
    • 26 Posts
    • 2 Thanks
    stephen.rooke
    you wont be able to use the help to buy scheme as your husband has already owned a property.
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