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Partner in bad debt and we want to by a home. What are the options?

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  • 27-04-2014 9:05pm
    #1
    JohnTravolta
    Registered Users Posts: 5 ✭


    Hi,

    Can someone help me?

    Me and my girlfriend are planning to buy a home. I plan to apply solely since my girlfriend had some troubles to pay off debts over the past years and is blacklisted. This situation is now under control and things look good for the future.

    She told me that I should not even mention her name at the application because they will disapprove based on us cohabiting. I think this is stupid since we both have jobs and in practice the bank takes much less risk if she is included in the mortgage since together we are on 130k+/ year vs 70k if we I go solo.

    Does anyone know how mortgages work in this situation? Should I go solo or, even if my gf is blacklisted, it is better to go for a joint application since the financial situation is actually better?

    Thanks
    Tagged:


Comments

  • Options
    #2
    Toots
    Administrators, Business & Finance Moderators, Society & Culture Moderators Posts: 16,905 Admin ✭✭✭✭✭Toots


    Whose name is going to be on the deeds? Is it just you going to own the house, or both of you?


  • Options
    #3
    JohnTravolta
    Registered Users Posts: 5 ✭JohnTravolta


    I prefer both of us...


  • Options
    #4
    Trish56
    Registered Users Posts: 1,256 ✭✭✭Trish56


    JohnTravolta wrote: »
    Hi,

    Can someone help me?

    Me and my girlfriend are planning to buy a home. I plan to apply solely since my girlfriend had some troubles to pay off debts over the past years and is blacklisted. This situation is now under control and things look good for the future.

    She told me that I should not even mention her name at the application because they will disapprove based on us cohabiting. I think this is stupid since we both have jobs and in practice the bank takes much less risk if she is included in the mortgage since together we are on 130k+/ year vs 70k if we I go solo.

    Does anyone know how mortgages work in this situation? Should I go solo or, even if my gf is blacklisted, it is better to go for a joint application since the financial situation is actually better?

    Thanks

    If your girlfriend has a bad credit history she has no hope of getting a mortgage approved so it's best if you apply in your own name. With a salary of 70k you should qualify for a mortgage of approx. 4 times, this will depend on your age and if you have any short term borrowings.
    Your girlfriend should apply to the Irish Credit Bureau for a credit report. Remember once you are married you have to apply in joint names so it's best to apply when you are single.


  • Options
    #5
    myxi
    Registered Users Posts: 205 ✭✭myxi


    If one applicant has anything on their ICB report the application will be rejected so you are best to apply solely.

    I have a mark on my report which is due to lift next year however we wanted to try and buy a house this year. My husband has applied solely with AIB and they have processed the application knowing that he is married but I am not applying. I am seen as a dependent because of us being married so that cuts a bit of his repayment capacity but the application has gone through. BOI would not entertain a sole application because we were married so I think it depends on the bank.

    My name will be on the deeds and I will sign the contract of sale I just won't be named on the mortgage. You could apply solely but have both of you sign for the house. You might want to get a solicitor to draw up an agreement for you detailing who actually owns what and who is paying what as you are not married.


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