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Knowing that you have bad credit events on your credit file can cause a lot of worry when it comes to applying for a joint mortgage. You may be worried that there could be a cap on how much you can borrow, or that one or both of you will be rejected which could leave another mark on your file.
Whilst these are genuine concerns, you may still be able to get the mortgage you need for your home. Often it comes down to finding the right lender to suit your needs and finances, which is where our expertise comes into play.
Here we talk more about joint mortgage applications and bad credit, how specialist lenders may be able to help and what to consider with your application.
Lenders will take a variety of factors into consideration when assessing a joint mortgage application. Whilst having an adverse credit history can present a few more challenges, it may still be possible to secure a joint mortgage.
Both credit histories will be looked at side-by-side and most will add the two scores together. They will usually have a minimum score you need to reach to meet this part of their mortgage criteria. So, if one person has a really good score and the other person does not, it may still be enough to satisfy their requirements.
When lenders review a credit file for a joint mortgage application, they will look for any indicators of financial instability over the past 6 years. This includes things like:
If any of these events are on your credit report, the lender will ask you to provide an explanation, which we explain in more detail below.
Get in touch with the Willows team to discuss your options if you have an adverse credit history and are not sure how it will affect your joint mortgage application.
When assessing your application, mortgage lenders will ask for more information about your credit history with questions like:
Be as honest and as transparent as possible, as this will only benefit your application.
Using a specialist lender might be your best bet, as they are experienced in dealing with bad credit joint mortgage applications and usually offer more flexibility compared to high street brands.
A joint mortgage application can be affected in several ways if one applicant has a better credit rating than the other. This can impact:
Regardless of your credit status, you will have to ensure that you are financially stable enough to take on a joint mortgage.
Not only can one person defaulting place more financial strain onto their partner, but if the payments cannot be maintained, the property could be at risk of repossession.
If you’re unsure about your suitability for a joint mortgage, speak to our team who can carry out some early-stage soft credit checks that won’t affect your credit score.
If one applicant has a stronger credit history than the other, there may be some instances where it is more beneficial to submit a sole mortgage application.
It’s also important to remember that whilst it is important, credit is not the only thing that lenders assess.
Every lender has its own minimum loan-to-income threshold, so even if one person can afford the mortgage on their own, they will likely have fewer deals to choose from. This could also have the knock-on effect of reducing the amount of money you can borrow.
This can be a feasible way to access better rates if it works for your situation, but we strongly recommend obtaining legal advice before proceeding. This will ensure both applicants fully understand the process, implications, and their positions after the transfer of equity.
Because it can work both ways, speak to one of our experienced mortgage brokers to get a better idea of how to approach your joint mortgage application.
some early-stage soft credit checks that won’t affect your credit score.
Can two people with bad credit apply for a mortgage?
When both people applying for a mortgage have bad credit, lenders will take the full circumstances into consideration. They will follow the same process as any other application – looking at the bad credit events in more detail and asking you to provide individual explanations as needed.
One of the potential benefits of using Willows is that we work with a range of lenders who specialise in processing applications from people with adverse credit histories.
This doesn’t guarantee that you will be able to secure a new mortgage, but provided you meet their criteria it could put you in a better position to get one compared to applying through a commercial lender.
Getting a quote won’t affect your credit score
The specialist lenders we work with understand that not everyone has a perfect credit history. It’s all about finding a solution that works for you as much as it does for them, so you may still have a chance of getting the joint mortgage you need.
We compare hundreds of deals to help you find the most suitable deal and can offer advice on how to prepare your application.
To find out more about how we can help, you can speak with us today by calling 01656 766 158.
If you have a question – we’d be happy to talk to you – simply call us…
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At Willows Finance we ensure your personal information is kept secure and confidential.
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At Willows Finance Ltd, we appreciate that your privacy is extremely important to you. With this in mind, we have put in place a number of measures to ensure that any personal details we obtain from you as a result of visiting this website is processed and maintained in accordance with accepted principles of good information handling and also in accordance with the Data Protection Act 1988.
This statement provides you with details of the type of information we may hold about you, how we obtain and use information and how we protect your privacy.
Willows Finance Limited
Brocastle, Bridgend, CF35 5AS
Authorised and regulated by the Financial Conduct Authority
Firm Reference Number: 670052
Company Number: 6678545 (Registered in England and Wales)
This document outlines the services we provide. If you need clarification, please contact us at 01656 766158.
We offer first and second charge regulated mortgage contracts for business or personal use.
Other finance options may include:
Regulatory Status:
We offer an advised mortgage broking service and provide enough information for you to make an informed decision.
We are not independent financial advisers. Free debt advice is available from the Money Advice Service.
You can view our privacy policy at: https://willowsfinance.co.uk/privacy-cookie-policy/.
Lenders may also have their own privacy policies which will be provided to you.
We charge a broker fee upon loan completion. The average fee is approximately 5%, depending on your situation.
Fee details:
No refund is offered after completion. You may pay upfront or add the fee to your mortgage. Fees and commission will be detailed in your ESIS and Mortgage Agreement.
You will receive a Mortgage Agreement and an ESIS document detailing:
You may cancel your application anytime before completion without any charge. Mortgages cannot be cancelled after completion.
Missing payments can lead to charges, repossession, and negative impacts on your credit rating.
Consolidating debt may result in higher long-term interest. Securing debt against your home increases risk.
Your home may be repossessed if you do not keep up repayments on a mortgage or other loan secured on it.
If you wish to complain, contact us at:
Willows Finance Limited
Brocastle, Bridgend, CF35 5AS
Tel: 01656 766158
You may be able to refer your complaint to the Financial Ombudsman Service.
We are covered by the FSCS. You may be eligible for compensation of up to £85,000 per person per firm for mortgage advice and arranging.
More info: www.fscs.org.uk
After processing your application, you’ll receive a Mortgage Agreement and have a 7-day reflection period.
Contact us during this period with any questions. To proceed, sign and return the agreement.
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