First Time Buyers, 1 with Excellent credit, 1 with poor? will we get a mortgage?

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My boyfriend and I are now considering our first home. His credit is excellent and he has savings in the bank to cover a deposit. My credit is poor and I have a DMP (debt management plan) running. My total debts are only £4000ish, but will the DMP put lenders off giving us a mortgage?
We both earn a decent wage and work full time?

When they weigh everything up, will the good points (good incomes, deposit saved) outway my poor credit?

  1. Reply
    Andrea B
    July 1, 2011 at 5:09 pm

    You should have him apply for the loan by himself. You credit score will bring down the combined score that they make from both of your scores and you will end up paying more in interest. Once you have bought the house, you can put your name on the deed.

  2. Reply
    C S
    July 1, 2011 at 6:05 pm

    I agree with Andrea B. Keep your name off of it for now, if he can afford it on his own. If not, keep renting until you can let some time pass and then try. You will totally get scru’d on interest and you don’t want that to happen. Good luck.

  3. Reply
    July 1, 2011 at 6:06 pm

    Whenever we first bought our house..we were in the same situation. My credit was better than his and his was still recovering from an ugly divorce. We ended up putting the house only into my name as adding him dropped our interest rate significantly. Our plan was to possibly refinance later when we’re straightened away and add his name then.

  4. Reply
    July 1, 2011 at 6:48 pm

    Yes.. you will fine.

    As long as your debt/income ratio is ok.

  5. Reply
    July 1, 2011 at 6:50 pm

    I agree with most of the answers above. However, if you engage the services of a good, reputable mortgage broker, they are going to run the various scenarios (single purchase, both of you on the loan, compare incomes, qualifying parameters, etc.) and he or she will tell you the best way to handle the mortgage. You have to remember that you may need to temper the price of the home you want to purchase if only your BF’s income is used to qualify. There is nothing wrong with buying a less inexpensive property; then when you get your credit cleared; purchasing a home more in line with your dreams. It just takes a little time.

    Good luck and patience is the key!

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