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Need a house but DH has bad credit!!

7 replies

Toothache · 24/02/2005 10:27

We live in a 2 bedroomed semi. The mortgage is in my name. DH will soon be earning more than me, but with he credit rating he can't get a mortgage!

So we have to assess everything on my earnings and therefore can't afford a bigger house.... but we can really IYKWIM. It's so stupid. Is there anything we can do? I could still be the named owner of the mortgage, but we could take DH's earnings into account to? Any mortgage experts out there?
I can't beleive I can get DH a credit card from my account.... but I can't get a mortgage with him.

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anorak · 24/02/2005 10:31

Hi toothache. You can get some types of mortgages without any references and proof of income. You have to have about 20 or 30% deposit and that is their security margin. You can only borrow a maximum amount of about (I think) 200,000 this way.

I got a mortgage like this a few years ago. It solved my problem of being unable to prove my income.

Hopefully other people will advise on the exact conditions of this type of mortgage nowadays. Otherwise contact a mortgage broker who will find something for you.

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zubb · 24/02/2005 10:33

Tootache, some lenders offer self-certification mortgages where you don't have to prove income. They do tend to have slightly higher interest rates, but are available at fixed rates.

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anorak · 24/02/2005 10:34

That's what I was talking about, but I couldn't remember the technical term

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zubb · 24/02/2005 10:35

some rates

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Toothache · 24/02/2005 10:38

Thanks.

I contacted a Mortgage Advisor who really put me off applying for a mortgage. She was so negative and kept saying that coz I had a car loan and a personal loan (again all in my name, but paid for from both our incomes) I would be lucky if I could get a mortgage. I put the phone down and haven't spoken to them since about it. She really embarassed me.

We would make about £20k on this house and would like to borrow around £75k, my earnings allow us to borrow £65k. So we could purchase a house at £95k-ish. In Scotland that would get me a nice 3 bedroomed semi in a nice area.
With DH's earnings from September this year we could effectively borrow up to £110k.
I'm feeling a bit delfated about the situation.

OP posts:

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anorak · 24/02/2005 10:48

Don't give up. You have only spoken to one person. Try a few other brokers before you give in. She doesn't sound very helpful, I'm sure you can do better than that.

The other alternative is to stick within your budget and build an extension when your dh has better credit or has saved up.

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zubb · 24/02/2005 15:09

some lenders allow you to borrow up to 4x on a single salary so its worth looking around.
I would really try another broker or two before you give up - or contact a couple of building societies directly. Some have an online calculator that takes into account your existing loans etc so you can see what some of the 'high street' names would give you.