Bad credit and no mortgage.

[Potatoman]

I am looking to get a mortgage in the next few years or so, and am reluctant to do so. The problem is is that my other half has a very bad credit score. There are Default notices, but no CCJ's, and she is with a debt management company and pays them each month. Due to earnings, we have to get a joint one, as i cant afford to have it all in my name. What can we do? I dont think anyone will give us a mortgage. Also, my Cscore is less than perfect!

[Sammy Snake]

There are companies who will give mortgages to people with a bad credit history, however you will pay a higher interest rate than with mainstream lenders.

 

Try googling 'bad credit mortgages' and lots of links come up.

[Dajstar]

www.moneysavingexpert.com  has some very useful information , and i'm certain the author of this site advises not to pay for debt management as there are legitimate free debt management places out there. You will get a mortgage , there will always be someone prepared to give you one , but it is definatly worth checking this site out as you can ask any question on the websites own forum which you may find someone asking similar questions.

[Oneeyedvic]

If you are looking in 'a few years', then if you sort out your troubles now, you may be able to get a main stream mortgage from a 'proper' lender and pay far less.

Start making payments to the companies that you owe money to, and this will help rebuild your credit.

After 6 years, defaults will come off your credit report

[erimus1]

Easy one here mate - just go self certified in your name only and include your partner's earings as part of yours - not lying you can just call it part of your household income - you do pay a little bit more for self certified and there is usually a minimum of 10percent deposit, although there are a few doing 5
Good luck

[scorpio61]

I'm sure that if you apply for a mortgage then your partner doesn't need to be checked, but her income can be used as "additional income" on the application. It would mean that she will have to wait a while to get her name on the deeds but if your building a future together there must be a high level of trust between you.

If your partner owes a large sum of money I wouldn't put her name on the morgage just yet anyway. Once you have had your house for a while it should increase in value. The creditors would also have waited quite some period of time for their money and would be more likely to take a "full & final" reduced settlement of your partners debts. If you need help with this go to www.chambersmoore.co.uk

Hope this helps