Hi everyone, i recently posted on this forum and got some very good advice and im looking for some more.
Im looking to help my son and his girlfriend get a mortgage but there are some circumstances which might prevent this from happening. My son has a job he is taking in 6 months and until then is on gardening leave, and also he has a chequered credit history so we would rather leave him out of the discussions at the moment.
The plan is that i get a mortgage with his girlfriend and when he is back on his feet and has been working for a little while he will then take over/transfer/remortgage in him and his girlfriends names. I have been doing a bit of research and it seems a joint mortgage would be the best way to go, but someone suggested i could act as a guarantor and have the house solely in her name, but as i understand there a lot less 'products' available for this type of mortgage.
Let me tell you a little about our situation.
Myself: I have a mortgage on a house that is worth 200k with approx 15k outstanding, however this is a joint mortgage with my ex-husband, although we havent divorced. He lives in the house but i continue to pay the mortgage dont ask me why its a long story, but the house will most likely be sold in the next 12 months.
I also have 2 defaults on my credit file, one dating back to June 2008 for £563 and one from November 2012 for £129. They havent been satisfied and the main reason i have them is because i didnt open the letters being sent to me as i now live in a flat with a communal letterbox and mail has gone missing. I know i could probably fight the defaults as i didnt recieve default notices but i want information as things stand at the moment. I also have a couple of missed payments on unsecured loans on my credit account over the past 24 months.
Now the good points: I have never missed a mortgage payment in 20 years, i also have had various loans over the past 10 years which were fully paid on time with no missed payments at all. I have no credit cards and no credit available to me (more through choice) and am only currently paying my mortgage (approx 15k outstanding @ 350/mth) and a loan (2500 outstanding @ 350/month)
I earn 85k a year and i work for the council.
The girlfriend: Perfect credit history, had a car loan and personal loan all cleared off without any missed payments and earns 25k a year.
My questions are:
1) Would it be better to apply for a joint mortgage or go for a guarantor mortgage, it seems from reading the guarantor mortgage that i would be 100% liable so would need to earn enough, also from which the calculators say i do by quite a margin, but less providers.
2) Would the fact that i earn a fair amount of money overlook any defaults on my credit file or does it not matter at all.
3) What sort of deposit would we need to raise? We were looking at 10% but after reading around the forums on this site i get the feeling that any default means minimum 15% deposit, which wouldnt be a problem but im asking out of interest.
4) Would the fact i have a default mean automatically that high street banks are out of the question. Would it be worth asking my current mortgage provider which is the woolwich, as i have a good history with them, or does this not get taken into account at all.
5) Could any mortgage be secured on the equity i have in my other house, we dont speak and he wouldnt sign any forms to help me out and both our names are on the mortgage. Again more asking out of interest.
6) Could i have any general advice with regards to the situation.
I posted here before and got some really helpful information and was very greatful, and im hoping i get some more helpful info. I know it would be best to speak to a mortgage advisor which i will be doing but i wanted some rough advice.
Many Thanks Again
Im looking to help my son and his girlfriend get a mortgage but there are some circumstances which might prevent this from happening. My son has a job he is taking in 6 months and until then is on gardening leave, and also he has a chequered credit history so we would rather leave him out of the discussions at the moment.
The plan is that i get a mortgage with his girlfriend and when he is back on his feet and has been working for a little while he will then take over/transfer/remortgage in him and his girlfriends names. I have been doing a bit of research and it seems a joint mortgage would be the best way to go, but someone suggested i could act as a guarantor and have the house solely in her name, but as i understand there a lot less 'products' available for this type of mortgage.
Let me tell you a little about our situation.
Myself: I have a mortgage on a house that is worth 200k with approx 15k outstanding, however this is a joint mortgage with my ex-husband, although we havent divorced. He lives in the house but i continue to pay the mortgage dont ask me why its a long story, but the house will most likely be sold in the next 12 months.
I also have 2 defaults on my credit file, one dating back to June 2008 for £563 and one from November 2012 for £129. They havent been satisfied and the main reason i have them is because i didnt open the letters being sent to me as i now live in a flat with a communal letterbox and mail has gone missing. I know i could probably fight the defaults as i didnt recieve default notices but i want information as things stand at the moment. I also have a couple of missed payments on unsecured loans on my credit account over the past 24 months.
Now the good points: I have never missed a mortgage payment in 20 years, i also have had various loans over the past 10 years which were fully paid on time with no missed payments at all. I have no credit cards and no credit available to me (more through choice) and am only currently paying my mortgage (approx 15k outstanding @ 350/mth) and a loan (2500 outstanding @ 350/month)
I earn 85k a year and i work for the council.
The girlfriend: Perfect credit history, had a car loan and personal loan all cleared off without any missed payments and earns 25k a year.
My questions are:
1) Would it be better to apply for a joint mortgage or go for a guarantor mortgage, it seems from reading the guarantor mortgage that i would be 100% liable so would need to earn enough, also from which the calculators say i do by quite a margin, but less providers.
2) Would the fact that i earn a fair amount of money overlook any defaults on my credit file or does it not matter at all.
3) What sort of deposit would we need to raise? We were looking at 10% but after reading around the forums on this site i get the feeling that any default means minimum 15% deposit, which wouldnt be a problem but im asking out of interest.
4) Would the fact i have a default mean automatically that high street banks are out of the question. Would it be worth asking my current mortgage provider which is the woolwich, as i have a good history with them, or does this not get taken into account at all.
5) Could any mortgage be secured on the equity i have in my other house, we dont speak and he wouldnt sign any forms to help me out and both our names are on the mortgage. Again more asking out of interest.
6) Could i have any general advice with regards to the situation.
I posted here before and got some really helpful information and was very greatful, and im hoping i get some more helpful info. I know it would be best to speak to a mortgage advisor which i will be doing but i wanted some rough advice.
Many Thanks Again