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Mortgage advice(9 Posts)
First off sorry this should probably be in money or property but posted here for traffic
I was hoping to get some advice on how much a bad credit score/ ccj / debt management plans affect mortgage quotes and a persons ability to get a mortgage?
So as not to drip feed - I'd be saving with a partner (currently not financially tied) my credit score is currently excellent, with no missed / late payments or any financial issues of any kind. I am signed up to both of the big credit score agencies in the UK to get my monthly statement to ensure I keep my score in the excellent range. My partner does not have a good score, currently has a couple of debt management plans and some ccjs (settled) that were accumulated after the break up of his previous relationship over 4 years ago and signing over of his previous house. He is the much higher earner out of us.
My first thought is we probably wouldn't be looking to actually apply for a mortgage for another couple of years so hopefully the ccjs will no longer be on the record, however the debt management plans will be. When I mention it he always says "well I used to have a house so I've been offered a mortgage before" although this was quite a while ago before he accumulated the bad credit rating.
My other thought would be to just apply as me but that would be on my lower salary.
Sorry for rambling! I just wanted to give an overview of our current situation. So could anyone let me know own how badly this could affect a mortgage application?
Sorry if I don't know all the abbreviations everybody uses on here as i'm pretty new!
So (we) were in a very similar position a few years ago - we weren't married then, but had a joint account. His credit score was excellent but mine was the issue - at that point I had an old CCJ (paid) about 3-4 years old and a couple of utility defaults - really all from years ago, living in shared accommodation, and stupidity of youth etc!!
We tried to get a mortgage on a relatively cheap property and to be honest we really struggled and eventually had to give up. My husbands salary wasn't quite enough to secure the mortgage alone, despite us having no other debts to speak of. Sub-prime lenders may be an option, with a guarantor and higher interest rates, but these weren't available to me at least. I think some credit issues are not as bad as others, but I think CCJ's are probably a more serious issue.
In the end we have waited it out and looking to buy this year when my record is finally clear (June 2017). As much as it's been frustrating we have used the opportunity to save more, and will now be in a MUCH better position than we were, should we have scraped something together 3 years ago.
My OH credit score wasn't great.
And we couldn't get a mortgage together.
No CCJ's just a couple of missed Argos payments.
I had to do it on my own.
Speak to a mortgage adviser and see what they about it all.
Have you thought about getting advice from a good mortgage broker?
All lenders have their own criteria over how they view debt management plans and CCJs.
Don't want to out myself but I work for a bank who have high mortgage market share in the U.K. and we wouldn't lend to someone with the above still showing.
So if you wanted to go for a mortgage with us it would need to be in your sole name (therefore based on your affordability).
A broker may be a good option for you as they will be up to date with what lender's criteria is to help you narrow down the search at the time.
Best of luck
If the ccjs were 4 years ago, and you're not planning on buying for a another couple you could be ok. The bad rating will drop after 6 years and as long as he's kept up all his payments since then, his credit rating will improve a lot.
Thanks for the advise everyone!
Might look at going for my name only (I'm on about the national average and we live in the north so could still get a perfectly nice starter house on my salary I think - we just wouldn't be able to get a nice big house without partners included as he earns about double my salary - but then with just 2 of us I guess we don't really need anything too big) and then have a written agreement via solicitor stating each parties contribution to the deposit should the relationship end.
Or just wait it out!
Thanks again for the help
I used to work for a sub prime mortgage broker. It's probably possible (I can't obviously say for sure) to get a mortgage. Your chances are increased if you go through a broker because often the sub prime or bad credit mortgages are broker only deals. It will be expensive though.
Make sure you declare everything to your broker, it makes it run more smoothly and avoids you raising your hopes up. Good luck 🍀
I had an excellent credit score and DH not so good (British gas bill default and a couple of late payment on his old mortgage).
Natwest, Barclays, HSBC told us not to bother applying for the mortgage. TSB said it would be fine but Halifax were the most confident that we would get the mortgage, so went with them. Got the mortgage 6 months ago.
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