If you decide to take out a joint mortgage, lenders will take into consideration both of your credit scores. Regardless if you earn more money than your spouse, they see the person with bad credit as a risk factor, and they look at your income as one.
Here are a few things you should know if you are in this type of situation:
1. You may get a mortgage at a higher interest rate because of this.
2. You may need to find a broker that has a more significant portfolio to find a suitable lender that will consider your application
3. If you have late payments, defaults, CCJs and on a debt management plan- lenders may see this as a risk, and this may impact your mortgage application. You may want to fix these issues by paying bills on time, waiting for defaults to go away or finish paying off your debts to reduce the level of risk.
4. Where there are credit issues lenders will need more information from you to find out why your payments were late, how long the last default was etc.
In a nutshell, if the above applies to you consider taking the following actions: .
1. Know what your credit score and report looks like, so you know what needs fixing.
2. Plan with an expert, so you know what you need to do for lenders to approve your application and prevent delays.
3. Be on the same page with your spouse, as it can be a long journey and one that needs careful consideration. Remember when you are married- the two are one- so no blaming or shaming the other person. focus on fixing your credit.
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