# Bad credit rating - how can I get a mortgage?



## Moneymoo (18 Feb 2010)

Hiya,

My partner and I have found our dream home. We need to borrow 128K but the bank have refused as I've a bad credit rating.... can a friend act as a guarantor for both or just for my partner on a single application?


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## Moneymoo (15 Mar 2010)

*How can I add my name to the house deeds*

Hi all,

I really need some advice. My boyfriend and I are hoping to buy our first house together. Problem is I have a 20K loan and all the lenders are refusing us based on this. They will consider my boyfriend as a sole applicant.
I'm a bit concerned about this as I would still be paying half the mortgage but will have no entitlements to the property.
My loan will be cleared in 3 years. How can we go about adding my name then? I've been told that as marriage is not an option (yet) we could remortgage in both names or switch lenders and have my name added then... is this correct? Are their tax issues?
Thanks very much....


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## househunter! (15 Mar 2010)

*Re: How can I add my name to the house deeds*

as far as i am aware you would have to be added onto the mortgage aswell as the title deeds. im not sure about tax issues but if your boyfriend were to dye in the 3 yrs (god forbid) you and he are technically strangers under capital gains tax and you would probably have tax to pay . 

prb best contacting the revenue direct re stamp duty etc and get a will put in place . the last thing you want should something happen is a screaming match witht he in laws .


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## Moneymoo (15 Mar 2010)

*Re: How can I add my name to the house deeds*

thanks for your reply. Could I get added to the mortgage if he remotgaged in 3 years or switched to a different lender?


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## househunter! (15 Mar 2010)

*Re: How can I add my name to the house deeds*

either or . if they have approved him and you are being added on then the bank has two people people who are securing the mortgage so i dont see a reason why the bank wouldnt want that . 
also if you arent on the mortgage and paying your boyfriend . it mite be worth looking into if you can claim rent tax credits as you would technically be a tenant .


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## mathepac (15 Mar 2010)

*Re: How can I add my name to the house deeds*



househunter! said:


> ...  it mite be worth looking into if you can claim rent tax credits as you would technically be a tenant .


That won't be possible, I believe. The "landlord" is in residence so the relief for private rented accommodation can't apply and the rent-a-room relief won't apply either as landlord and tenant are not "unconnected".


Just to be sure I'm not in error, all the relevant Revenue leaflets are here -  http://www.revenue.ie/en/tax/it/leaflets/it1.html#section4


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## Subtitle (16 Mar 2010)

*Re: How can I add my name to the house deeds*

Could you and boyfriend  go to a solicitor and have him (bf) sign over half the property to you, or put it into joint names?


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## mathepac (16 Mar 2010)

*Re: How can I add my name to the house deeds*

No, the lender won't allow that and they hold the deeds plus there may be serious tax implications even if it could be done..


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## BONDGIRL (16 Mar 2010)

*Re: How can I add my name to the house deeds*

You wont be able to get on the deeds without paying tax etc.. I think its some inherit tax or something?Basically I rang about same thing. I have a house and my fiance is living with me yrs and I wanted to put him on the house, but bank and solictor said to leave well alone till we marry, it becomes the family home then without paying tax etc...  I would though get both your names on the mortgage protection if you can. I got a new policy with my fiances name on it, as he had of died I would be fooked...  but we are marrying in a few mths so it will all just go to family home. Search on a few of the threads as I defo put a thread up asking same Q and got great advice!


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## Moneymoo (17 Mar 2010)

*local authority mortgage*

I'm getting desperate now....

As you will see from my recent posts my boyfriend and I cannot get approved for a mortgage together as I have a 20K loan.

Does anyone have info on the mortgages offered by local authorities? Interest rates etc.... thanks


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## fizzelina (18 Mar 2010)

*Re: local authority mortgage*

is renting together not an option? houses are so expensive between the deposit and then the money put into furniture, floors, tiles etc. I don't know why you are so urgently looking to get a mortgage if a bank refused you. But you could consider the Rent to Buy schemes popping up, you pay rent for 2 years and then you buy and the rent comes off the purchase price.


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## Moneymoo (18 Mar 2010)

*Re: local authority mortgage*

Hiya,
we are currently renting. Basically we've seen a new showhouse at a very reasonable price. We have the deposit and the mortgage is just over 120K, it's an offer to good to let pass by. Sale includes everything, right down to the lightbulbs!!!


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## fizzelina (19 Mar 2010)

*Re: local authority mortgage*

oh that is a good offer moneymoo, if you have the deposit and don't need to furnish the house. have you considered whether you could transfer the 20k loan into someone else's name temporarily to allow you to apply for the mortgage? Maybe this can't be done especially in the current climate. Also did you use a mortgage broker, they know the market inside out. Finally did you tell the builder your dilemma? That you want to buy but this 20k loan is stopping a mortgage getting approved, perhaps he has an idea or suggestion.


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## Brendan Burgess (19 Mar 2010)

I have merged your three separate threads together as it gives a better overall approach.

You are not being denied a mortgage because you have a loan. You are being denied it because you have, according to yourself, "a bad credit rating".

How did you get this bad credit rating? 

Is it justified?


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## Moneymoo (19 Mar 2010)

Hi Brendan,

I should have updated this.... I actually don't have a bad credit rating, got my documents from the ICB and it's perfect. My bank gave me an "in house" credit rating based on my loan and overdraft. That was their way of refusing me.....


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## Ann1 (20 Mar 2010)

This is the link to Dublin City Council...their home loans department. I am not sure if they are still giving home loans. Many County Councils around the country have suspended home loans due to lack of funds.
[broken link removed]


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## number7 (20 Mar 2010)

Moneymoo
If you have exhausted all banks and brokers in search of a joint mortgage and are unable to raise a mortgage jointly then it is unlikely that you will be able to purchase the property jointly and will have to consider the option of your BF buying the property in his own name( I would be surprised if the banks prefered one borrower over two unless there was a serious blackmark on your credit rating).

Perhaps you have not yet tried all lending institutions, if not use a broker as they will most likely be able to identify the banks most likely to approve you so one application will appear on your CB instead of multiple applications. 

One suggestion from left field ,I am no expert so might not be possible, approach the builder / developer and ask if you could rent to buy. You will have to pay a bit over the odds. If you can get agreement in principle from the developer, then use your deposit money to pay off or pay down your debt on the basis that the bank then give agreement in principle for the mortgage in a period of 3 years. 

Your rent will meet the deposit requirements when it comes to drawdown. WARNING  These schemes do favour the banks and the developers in terms of deposit levels and purchase price and they do put your mortgage repayment date out a further 3 years but they also give you the option to not complete the purchase should your domestic situation not be as expected or the property market move significantly against you. 

I would not suggest that rent to buy is a good option under normal circumstances but it may be useful to your particular situation.


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## Moneymoo (20 Mar 2010)

We did ask about rent to buy but apparently the builder hasn't paid the bank fully so it's unlikely that they will allow him to operate the rent to buy scheme... could this be true or is it just an excuse do you think?


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