Can I get a mortgage with bad credit if my partner has good credit
What are my mortgage options if I have bad credit and my partner has good credit ?
While you might think that having a partner with good credit will increase your chances of securing a mortgage loan this is not necessarily the case. Mortgage lenders will review both of your credit scores when considering a new joint mortgage loan application.
If an application is accepted a partner having an adverse credit history will likely mean that you will be charged a higher rate of interest, in response to the higher level of risk the lender will perceive in lending to someone with a bad credit score, even if the other partner has a good credit score.
When considering this type of joint application then, it could be wise to first speak to a professional mortgage adviser. A professional intermediary can give you advice about the best way to proceed with your application, and use their expert knowledge of the whole market to find the lender that is likely to be able to offer you the best deal for a mortgage.
There are also a selection mortgages provided by specialist lenders who can only be accessed by a whole-of-market broker. It may also be that, if you, or your partner, have a legitimate reason for an adverse credit history, that a adviser could help state your case to the mortgage underwriters, possibly securing you a better deal.
If you are interested in finding out if you could benefit from the services of a mortgage advisor you could fill in our online contact form to request a call back for a free initial consultation from a member of the Fair Mortgages team. Alternatively you can contact us directly on: 0117 313 7780.
One of the options to increase your chances of an application being approved, or reducing your interest rates, that you may have been considering is the partner with a good credit history applying for a solo mortgage. There is nothing stopping you from doing so, however if you opt for this choice when calculating your affordability a lender will only consider the income and assets of the solo applicant meaning this route may not be suitable if you were relying on your combined income to afford your monthly repayments.
If the income of the applicant is not high enough to qualify on their own, then it may be better to look for a mortgage from a lender that is less opposed to risk. While in recent years the high street lenders have become increasingly reluctant to lend to borrowers with poor credit scores, it is not impossible to secure a mortgage. There are also mortgage products from smaller lenders specially designed for borrowers who have had issues with credit in the past.
The increased risk posed to the lender however means that rates and arrangement fees are higher than those available to couples who both have excellent credit scores; these costs can be somewhat negated if you can afford to put down a larger deposit on the property.
Our Mortgage Service if you have a low credit score
Special features of what we offer include:
- Whole of market service - we work with UK lenders who will consider you if you have a low credit score
- Access to leading market mortgage rates
- Access to exclusive loan deals not available on high street
- Fast turnaround - speak to us today if you need to move quickly
- Looking to raise additional finance on top of your existing mortgage or buy to let mortgage? - we have access to a range of finance solutions
To investigate your mortgage options if you had previous credit issues call our mortgage team on 0117 313 7780 or fill in our call back form.
"The essence of the Fair Mortgages service is professional independent mortgage and protection advice brought to you by a team of specialist advisers and experienced administration support.
As your mortgage is such an important transaction, good advice is imperative.