Mortgage help!!

[emzul]

Hi Ladies ,

I wonder if any of you could help. Me and my OH are thinking of buying a house this year or next. Now I know my credit rating is poor, this is all my own doing, I was silly in University and took out loans and credit cards when I shouldn't have, and I am still paying them back. I was young and silly and was being offered credit left right and centre and shouldn't have taken it. C'est la vie.

I should also mention at this point that when we got together last October he was actually planning to buy a house this year, so really he would have only been able to get a mortgage based on his wage anyway, but I want it to be "our house", not just his.....


Anyway, my OH has a good job and is on £35k a year, plus he also gets decent bonuses. He also has about £30k in savings and shares.

Now, we were talking about getting a joint mortgage and I stopped him straight away and said there was no way I would be accepted for one, as my credit rating was rubbish. So now we are wondering how much he would be able to get based on his income alone (is it 3 or 4 times your income?). I will pay half of the mortgage if he gets one, but is there anyway they would be able to include my income on the mortgage application if it wasnt actually a joint mortgage? I know this is probably a silly question but I just want to be sure!

He says he can afford to put down about £30k of his own money and his Nan would be able to help with say £5-£10k but I just feel awful that I have no savings and now he wont be able to get as decent a mortgage without me as a joint applicant.

There is a chance I MAY be able to get some help from my Mum and Stepdad (they leant my step-brother £10k to help him towards his house but this is money they will get off his Nan when she passes as she left £10k to him and they have just given it him early and when she dies they will get his £10k if that makes sense?!) but then I don't want to be left with a loan to repay to my parents if they can lend us some on top of a mortgage too!

sorry for the long rant but I am pretty clueless about all this!

Thanks in advance if you have managed to read this far with falling asleep.

xx

 

[Abz1982]

What is your rating?

OH and I bought this place and my rating was 647 and his was 577.......out of 1000. It was shared ownership though with the Scottish exec and through the Halifax. Our Loan to Value ratio was also 74% - we were told the lower that is the more likely you are to get a mortgage and also a better rate of interest (ours is 4.99%). We also only had 6k deposit....and house was 127k.

 

[LDC]

Can you go and see a mortgage advisor at your bank? They don't charge and it might give you a clearer idea as to what you could afford.

My husband wanted to get a mortgage on his old house (that he shared with his ex) which was valued at 100k, he earns 25k a year but was rejected for this, despite the fact that he'd been living in it alone for over a year since his ex walked out and was paying for it alone, and could prove this.

Your earnings won't be taken into account if he's going for a sole mortgage, as you're not liable for the payments, he is. So (business speaking) you could leave at any time and have no legal link/rights to the house in terms of payments so they won't consider your earnings because they're ultimately not bothered (in a nice way!) they want his earning because he's responsible and its him they come after if he fell behind on the payments.

I hope that makes sense!

X

 

[seoj]

As above- I would recommend you talk to a bank about your situation before making any final decisions. There is lots they can do- maybe it doesn't make sense to have you on the loan initially (if they can even do that?)- but that doesn't mean you can't be added on later... I think there are ways to work around it all. Credit rating is a big factor- but more so with your overall mortgage rate- so I would just get it all sorted before you make any decisions- you never know hun.

Also- I can't imagine you would need that much money down? We didn't-- but, it just depends on what you can afford (mortgage wise) and the amount your willing to spend on the house- I would certainly try to keep some in savings though if possible- as once you move in, there will be other expenses most likely- like fridge, washer/drying-- curtains... things beyond just the house. Decor... it adds up! LOL. Obviously you can take your time with some stuff- but nice to have some savings as things come up. Best of luck!

We sold my hubbies old house- put 5K down on the new place and kept 10K in savings and that went FAST! We had to get fridge, washer/dryer, window coverings... plus a few other new things we kinda needed. Been there 3yrs and still working on filling up the space! LOL. One thing at a time But all well worth it!

 

[hulahoop09]

Well we were on approx 30k combined when we took our mortgage house was 110k we took mprtgage for 80k. Hubby and his dad already had the mortgage and we needed me to take over. Now I have a vrap credit and went to natwest who hubby already had mortgage woth and explained situation, they didnt wanna know and went through no figures etc.

Went to halifax who I had basic bank account with.and the explained they could try etc so we did and I got approved! Its deffo worth talking to your bank and getting some advise.

Xx

 

[Kiki1993]

With the money he is on and the money he has saved and the money you wil get lend from family i dont see any problem in you getting one imo.

 

[tiggerbounce]

It may be worth doing an experian credit check to see how bad your rating really is x

 

[ellismum]

I'd be inclined to seek advice from a broker than your banks mortgage adviser. They have knowledge if the whole market and different situations.

 

[emzul]

Thanks for all the replies, I really appreciate it!

I got a copy of my credit report but I dont think its correct because NONE of the overdrafts or credit cards from Uni are on there....

I think our best option would be to see a mortgage advisor. Thanks very much for all your help. xx

 

[Abz1982]

How long ago were they closed? It could be that they are now closed - although they should still show.

 

[LDC]

Silly question, but if you're using experion you need to check that you entered all your old addresses and not just the ones that it says are ok to give an average report.
Pew did this on my husband and because he only entered he last two addresses (which they asked for to create the account) they didn't show his old account that we actually wanted to look at, which were addressed to his mums house. We had to go in and add that address on - they only ask to date back to a certain year, like 5 years ago but this was taken out way before that so didn't show.

Gah I hope that made sense! Xx

 

[emzul]

Hi, thanks for the replies. My OH has got an appointment with a mortgage advisor on the 16th August so we will have a much clearer idea of what we can afford after this. RE my credit report, it turns out that creditors dont always register your debts with the same credit reporters, so some may report it to Experian, some the Equifax etc. So I have gotten reports from the 3 main ones (Experian, Equifax and Call Serve I think its called) and now have a clear idea of who I own how much to.

Its slightly more than I thought (around £8k) but I should be able to clear this all off within 18 months.

Hopefully OH will have some good news from the mortgage meeting! x

 

[ellismum]

Hi, thanks for the replies. My OH has got an appointment with a mortgage advisor on the 16th August so we will have a much clearer idea of what we can afford after this. RE my credit report, it turns out that creditors dont always register your debts with the same credit reporters, so some may report it to Experian, some the Equifax etc. So I have gotten reports from the 3 main ones (Experian, Equifax and Call Serve I think its called) and now have a clear idea of who I own how much to.

Its slightly more than I thought (around £8k) but I should be able to clear this all off within 18 months.

Hopefully OH will have some good news from the mortgage meeting! x

Call serve are now called Noodle. It's completely free and in my case, 100% accurate as everything I have is registered.

Don't be fooled.into believing ha good report or score will mean acceptance. Every lender bas their own criteria when lending so they're pretty useless. I've seen people with 999 or 5/5 refused credit.

 

[emzul]

Hi, thanks for the replies. My OH has got an appointment with a mortgage advisor on the 16th August so we will have a much clearer idea of what we can afford after this. RE my credit report, it turns out that creditors dont always register your debts with the same credit reporters, so some may report it to Experian, some the Equifax etc. So I have gotten reports from the 3 main ones (Experian, Equifax and Call Serve I think its called) and now have a clear idea of who I own how much to.

Its slightly more than I thought (around £8k) but I should be able to clear this all off within 18 months.

Hopefully OH will have some good news from the mortgage meeting! x

Call serve are now called Noodle. It's completely free and in my case, 100% accurate as everything I have is registered.

Don't be fooled.into believing ha good report or score will mean acceptance. Every lender bas their own criteria when lending so they're pretty useless. I've seen people with 999 or 5/5 refused credit.

Yeah noodle, that was it! Yeah I read somewhere that credit card companies actually dont like to lend to people with 100% perfect credit rating, they dont want their customers paying in full every month because they lose out on all the interest that comes with not paying/only paying the minimum payment.

Im sure he will be fine, he has a decent sized deposit and my parents I think will be able to help us a bit. Just have to wait and see I guess! x