Expert Joint Mortgage Advice & Mortgages Suitable For Those With Bad Credit

Our advisers are regularly asked if it is possible to get a joint mortgage when one partner has bad credit. The term ‘bad credit’ can cover a variety of different scenarios and circumstances, so accessing the right advice for your personal situation is not always as easy as it should be.

Getting the correct advice from specialist mortgage advisers, like our team at Finance Advice Centre, can make all the difference when you come to finding the most suitable deal on the market and applying for a mortgage. Contact us today and one of our advisers will be on hand to answer any of your questions and queries and get all the help you need in the mortgage process.

There are a lot of types of bad credit that can be a sticking point for joint borrowers looking to get a mortgage together. Incomes are being put under increasing financial pressure which means that credit issues that stem from circumstances outside of your control are sometimes unavoidable. Instances of bad credit include defaults, CCJs, late payments, repossessions, and bankruptcy.

If you have a history of bad credit lenders will usually ask for a more detailed explanation of the situation. For example, they may ask if the negative credit event was a one-off or recurring issue, how large the debt was, and if the debt has been repaid or is currently on a repayment plan etc. As well as this, most lenders will want to understand some other factors in your lives before they will make a final decision. These factors are:

•       The age of the applicants
•       Marital status
•       Mortgage term you have requested
•       Deposit amount
•       Whether the applicants are employed or self-employed
•       Currently outstanding credit commitments

It is normal to feel overwhelmed by how much information the lenders will request from you. However, it is important to keep in mind that it is still possible in many cases to successfully secure a joint mortgage if one partner has bad credit.

As a self-employed individual, the criteria you are required to meet is not really different from customers in full-time employment, but the way in which your income is assessed will be.

The majority of lenders will want you to provide 2-3 years of accounts or tax calculations. It could be possible to find a provider who will accept 12 months of accounts, depending on how much extra risk your bad credit adds to the mortgage product on offer.
It will help your application if your accounts show steady income during the years they cover, as fluctuating earnings could cause concerns with the provider. If your income is a bit irregular, a strong track record in the industry you trade in could help to offset some of the risk.

Each provider has their own individual criteria and guidelines that they will look at when considering this type of joint mortgage application. The majority of lenders will prefer that both applicants are detailed on the application and will often make their decision based on the credit profile of the weakest applicant. In these situations, the bad credit profile can outweigh the good credit profile and the application could be turned down as a result.

When a credit check is conducted the application will be scored jointly, meaning that potential borrowers are required to meet the lender’s joint credit score criteria before being accepted. There are lenders out there who don’t look at joint credit scores at all, instead searching the credit histories of both applicants to look for any issues that could conflict with their policy guidelines.

Providers will normally want the mortgage application to include the information of both partners who will be living at the property. However, this is not always the case, and some lenders will consider a single applicant as long as they meet the affordability and lending criteria.

Bad credit can have an affect on the ways in which potential lenders view your joint mortgage application. The majority of providers consider applications using a sliding scale and will offer a choice of products with varying interest rates.

Some lenders offer products that are specifically designed for applicants with credit problems and may ask for a larger deposit depending on the types of bad credit you have experienced. Contact Finance Advice Centre today for tailored advice on the most suitable joint mortgage options for you. 

As a mortgage is secured against your property, it may be repossessed if you do not keep up the mortgage repayments. Think carefully before securing other debts against your home.