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Bad credit and no mortgage.

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Potatoman | 21:53 Mon 28th Mar 2005 | Business & Finance
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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!
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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.

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.

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

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

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

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Bad credit and no mortgage.

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