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  • FIRST POST
    • hodge263
    • By hodge263 14th Mar 17, 11:00 AM
    • 35Posts
    • 5Thanks
    hodge263
    Financial link
    • #1
    • 14th Mar 17, 11:00 AM
    Financial link 14th Mar 17 at 11:00 AM
    Hi all,

    My fiance and I have been saving to buy a house soon. I have a previous bankruptcy and repossession but he has a great credit history. We had considered getting a mortgage in his name only so that my history doesn't adversely affect him. However the mortgage advisor we have been dealing with thinks we may be accepted by Nationwide. My concern is that if we are declined will we then be financially linked or does this only happen when you actually open a joint account/Mortgage?

    If we are declined together we would go back to the original plan of him applying on his own but I don't want to ruin his chances!

    Thanks in advance,
    Anna
Page 1
  • National Debtline
    • #2
    • 14th Mar 17, 11:09 AM
    • #2
    • 14th Mar 17, 11:09 AM
    Hi

    A financial association is only made on your credit files when you actually hold a joint account or mortgage, not purely from attempting an application.

    James
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • hodge263
    • By hodge263 14th Mar 17, 11:10 AM
    • 35 Posts
    • 5 Thanks
    hodge263
    • #3
    • 14th Mar 17, 11:10 AM
    • #3
    • 14th Mar 17, 11:10 AM
    Thanks very much for the quick response James much appreciated
    • GingerBob
    • By GingerBob 14th Mar 17, 11:12 AM
    • 3,618 Posts
    • 1,643 Thanks
    GingerBob
    • #4
    • 14th Mar 17, 11:12 AM
    • #4
    • 14th Mar 17, 11:12 AM
    Hi all,

    My fiance and I have been saving to buy a house soon. I have a previous bankruptcy and repossession but he has a great credit history. We had considered getting a mortgage in his name only so that my history doesn't adversely affect him. However the mortgage advisor we have been dealing with thinks we may be accepted by Nationwide. My concern is that if we are declined will we then be financially linked or does this only happen when you actually open a joint account/Mortgage?

    If we are declined together we would go back to the original plan of him applying on his own but I don't want to ruin his chances!

    Thanks in advance,
    Anna
    Originally posted by hodge263

    If you've been living together you also need to ensure a utility or phone company hasn't created an illegal association. They are well-known for doing so.
    • hodge263
    • By hodge263 14th Mar 17, 11:23 AM
    • 35 Posts
    • 5 Thanks
    hodge263
    • #5
    • 14th Mar 17, 11:23 AM
    • #5
    • 14th Mar 17, 11:23 AM
    Thanks gingerbob. We currently live with my parents so don't have any utility bills in our names.
    • sonstream
    • By sonstream 14th Mar 17, 12:06 PM
    • 124 Posts
    • 40 Thanks
    sonstream
    • #6
    • 14th Mar 17, 12:06 PM
    • #6
    • 14th Mar 17, 12:06 PM
    Hi

    A financial association is only made on your credit files when you actually hold a joint account or mortgage, not purely from attempting an application.

    James
    @natdebtline
    Originally posted by National Debtline
    this is incorrect a joint application would create a financial association
    • hodge263
    • By hodge263 14th Mar 17, 12:43 PM
    • 35 Posts
    • 5 Thanks
    hodge263
    • #7
    • 14th Mar 17, 12:43 PM
    • #7
    • 14th Mar 17, 12:43 PM
    Ah, now I'm very confused! Can anyone else shed any light on this please?
    • sonstream
    • By sonstream 14th Mar 17, 12:56 PM
    • 124 Posts
    • 40 Thanks
    sonstream
    • #8
    • 14th Mar 17, 12:56 PM
    • #8
    • 14th Mar 17, 12:56 PM
    Ah, now I'm very confused! Can anyone else shed any light on this please?
    Originally posted by hodge263

    have a look here https://help.creditexpert.co.uk/help/sv635/Credit_report/financial_associations
    • hodge263
    • By hodge263 14th Mar 17, 1:06 PM
    • 35 Posts
    • 5 Thanks
    hodge263
    • #9
    • 14th Mar 17, 1:06 PM
    • #9
    • 14th Mar 17, 1:06 PM
    Oh dear, would it be wise to avoid a joint application then? I'm scared of ruining my partner's chances of getting credit! I know there is a chance we may be accepted together but if we do get rejected we were relying on him then applying on his own. Surely once he is linked to me he will be refused?
    • GingerBob
    • By GingerBob 14th Mar 17, 1:14 PM
    • 3,618 Posts
    • 1,643 Thanks
    GingerBob
    It beggars belief. This from the Experian website:


    Examples of a financial associate:

    A person you have a joint credit card with

    There is no such thing as a joint credit card. And yet, here we have the self-appointed custodians of your personal financial data thinking that there is. The website also states that two names on a utility account doesn't create a financial association. Well Experian, if this is true why do you let these companies create them?


    As for a joint application creating an association, I must admit I didn't know about that scandal, but, according to Experian, yes it does.


    Of course, from the above, it appears we can't rely on anything Experian says, which is not surprising since a large part of their business revolves around pedalling lies (bogus financial links, bogus address links, collection of financial records without consent, libellous credit data, etc etc.).


    OP, perhaps you should ask Nationwide if they'll file a (bogus) association if, or when, you make a joint application.
    • hodge263
    • By hodge263 14th Mar 17, 1:18 PM
    • 35 Posts
    • 5 Thanks
    hodge263
    Thanks, I will ask the mortgage advisor to check with Nationwide before we decide what to do. I knew buying a house after bankruptcy would be stressful but it's far worse than I imagined! Spoken to three different advisors about various things and been given conflicting information from all of them.
  • National Debtline
    this is incorrect a joint application would create a financial association
    Originally posted by sonstream
    Thanks for this correction sonstream.

    James
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • mrmagooooooo
    • By mrmagooooooo 14th Mar 17, 3:17 PM
    • 71 Posts
    • 47 Thanks
    mrmagooooooo
    I personally wouldn't risk it and just apply for the mortgage it in a sole names if possible.

    How long ago was the Bankruptcy and repossession?

    And come on own up.. Who's put 20p in GingerBob again!! lol
    • hodge263
    • By hodge263 14th Mar 17, 4:16 PM
    • 35 Posts
    • 5 Thanks
    hodge263
    Repossession was February 2011 and bankruptcy September 2011. We wanted to buy together because it will give us the opportunity to borrow enough to buy a house we want to stay in long term. Would only be probably £10-15k more than my partner can borrow on his own but it would make a big difference to us. It wouldn't be the end of the world if he had to be the sole applicant but ideally we want the best house we can afford.
    • SeanG79
    • By SeanG79 14th Mar 17, 4:34 PM
    • 842 Posts
    • 379 Thanks
    SeanG79
    I would expect the mortgage adviser has seen a copy of both your credit reports from all 3 reference agencies? That should put them in a position to properly advise what a mortgage lender will see and then based on experience of their risk appetite, decide which lender to approach in a joint application or if it should be an individual application.

    I assume Nationwide weren't the lender to repossess previously as they may keep record of repossessions longer than 6 years...
    • hodge263
    • By hodge263 14th Mar 17, 5:20 PM
    • 35 Posts
    • 5 Thanks
    hodge263
    Yes he has seen our credit files. The only thing on there is my bankruptcy which is a big problem I know! No defaults or anything. The repossession was with Royal Bank of Scotland. My partner banks with Nationwide and has done for over 20 years, he also has a help to buy ISA with them not sure if any of that will make a difference.
    • SeanG79
    • By SeanG79 14th Mar 17, 5:25 PM
    • 842 Posts
    • 379 Thanks
    SeanG79
    I'm not a mortgage advisor but in my opinion you will struggle to have a high street lender approve a mortgage with a bankruptcy showing on your file.

    Have you got active credit since the bankruptcy that you have been repaying on time?

    Personally I would wait for the bankruptcy to come off your file before applying for any joint credit.
    • hodge263
    • By hodge263 15th Mar 17, 8:16 AM
    • 35 Posts
    • 5 Thanks
    hodge263
    Yes I have a barclaycard and a vanquis card, I just buy my petrol each month and pay in full. I also kept my mobile phone contract after bankruptcy. The original plan was to wait until September for the bankruptcy to come off my file. We made the appointment with the mortgage advisor to see if a joint mortgage would be possible and he said waiting until September wouldn't make a difference. We will probably wait until then anyway so that we have plenty saved for furniture etc but we would like to be armed with as much accurate information as possible when we do apply.
    • SeanG79
    • By SeanG79 15th Mar 17, 8:20 AM
    • 842 Posts
    • 379 Thanks
    SeanG79
    In my opinion, a bankruptcy showing on the credit search will definitely make a difference - it would make a difference on car finance, so I expect it would make a difference on a mortgage. September is not that far away, so I would wait until then.
    • hodge263
    • By hodge263 15th Mar 17, 9:11 AM
    • 35 Posts
    • 5 Thanks
    hodge263
    Thanks for the advice
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