Morgage Advice Urgently Needed

D_O_S101

Really hoping someone here can give us some advice.

Just alittle bit of background infomation. We are both currently semi first time buyers looking to buy our first house. We have managed to get £30,000 as a deposit and after looking at houses have found a house we love for £130,000. We have approached the Nationwide for a morgage and have in principal had a morgage agreed for £100,000.However this is where the problems start. While they were doing the credit check it failed and therefore stopped our application. We have applied for a copy of the credit report from Experian for my partner as we feel it is her file which is causing the issue. I currently have a clean credit rating (as far as we know) as I have only had one loan and it was paid off on time. My credit card is paid off on time each month and in full and all my bills have always been kept upto date. My partner however we feel has a poor credit history thanks to her ex partner defaulting on morgage payments and losing the house. The morgage was settled by the bank and money actually paid back to them. However due to his spending habbits, she also incurred other debts from him including a council tax bill which was unpaid and other debts. All of these debts unfortunatly had to be paid for by my partner as the debt agencys were unable to located her ex partner. The debts have all been cleared a number of years ago but fall under the 6 year cut off point for when debts are removed from your credit file. She has been renting a property for the past 4 years and has never been late with any payments. On either the property or any of the utilitiy bills etc.

What we really need to know is, is there any way to get the old bad credit history removed from the file, or at least ignored or is there any way to get Nationwide to ignore this information as it occured so many years ago, and wasnt the fault of my partners actions, and she has proved in the following years to be a trustworth and on time payer.

Really hoping someone can give us some advice or guidence on this issue. We are still looking at making an offer for the house and explaining the situation to the estate agent and asking for alittle time to get this problem sorted.

beecher

I doubt if you'll be able to get the debt ignored by Nationwide, or anyone else for that matter. I'd suggest getting credit files for both of you and seeking professional advice on this. It may be you're advised to wait for 2 years before buying somewhere but best to know for sure before you start putting in offers for houses.

herbiesjp

Is your income sufficient to buy in your name only?

Then once the bad credit has fallen off the credit file you can do a transfer of equity to get your partner on there?

D_O_S101

Unfortunatly not no. I've already looked into this option and I would require a further £30,000 on top of the morgage amount they would offer me, when added to my deposit. As I said we have ordered a copy of the credit report for my partner as it is possible due to the previous morgage being a joint morgage there still may exist a link on the credit file between herself and her ex partner. If this is the case it would drag her credit rating down even further. We also plan to make an appointment with the Nationwide again to discuss the issue with them and also provide them with evidence in the form of the rent being paid on the current property that we/she is able to maintain a regular payment.

We are hoping that with this information, coupled with what we class as a decent deposit of £30,000 we can pursuade them to change their minds.

silvercar

You can get notes put on credit files to explain previous debts. Your partnere also needs to take steps to financially distance herself from the ex or this problem won't go away.

D_O_S101

That will be one of the first steps we look at once we receive the credit report. We already have a legal document stating that the partnership has disolved between the 2 of them.

We are expecting to see 3 items which will be affecting her credit score. The first of these will be the financial link between herself and her ex partner. The second is an old CCJ for non payment of council tax (again her ex's doing) which we hope to have removed due to the tax being paid in full and the 3rd and final one is an unpaid debt of £7,000 connected to a loan which was taken out as her as a joint member, but which she never signed as she had no idea her partner was trying to take this loan out. We requested a copy of the original loan application from the company in question and when it arrived we pointed out to them that her signature wasnt on the document. Since then they have passed this back to the original finance company and we have heard nothing more about the issue. However this doesnt mean that it has been removed from her credit file. If we find it still listed we shall be contacting them to have this removed straight away.

carole1705

My daughter is having the same problem. She wanted a broadband dongle so approach carphone warehouse and they suggested the orange network, for some reason orange declined her. So she went to phones 4 u and got one on the 3 network. So far so good, a few days later a dongle arrived from orange (the one she had been declined for) and then 1 from 3. She rang Carphone warehouse and they tried to persue her to keep the orange dongle (offering her £50). She again rang Carphone warehose and eventually they sent her a special envelope for her to send the goods back, which she did. In the meantime a bill arrived from orange, after several phone calls and a reminder arriving from Orange, Carphone warehouse told her to pay the bill and they would refund her. My advise was not to pay anything to orange as she would be entering into a contract. Carephone warehouse eventually did send out a cheque to my daughter to cover oranges payment. They insisted the contact with orange was cancelled. She sent off a cheque and heard no more for 3 months. Then a debt collection agency letter arrived and my daughter rang and paid the amount by card the same day. She has subsequently checked her statements and the cheque she sent off has neva been presented for payment.

Now she wants a mortgage she has been refused because she has a late payment of 3 months or more on her credit file. It for the grand sum of £22. I have written a letter to orange but not had a reply as of yet. So she cant have a mortgage because a company blacklisted her for the own mistake and asking her to pay for something she had neva used. It is so annoying.

inca_2

I do feel for your partner and the loan situation should be able to be sorted out if she never signed to give agreement. However, if the mortgage was joint and there was a problem with it then I don't think there is anything you can do as she was jointly liable for that debt if she was named on the mortgage, so as far as a mortgage company or her credit file is concerned she will have the bad debt in her name. Once you have a copy of both credit reports I would speak to a whole of market adviser rather than going direct as you will have more specialist advice as to any avenues that may be open to you. Speak to family and friends and see if they can recommend someone to you that they may have used.

Wickedkitten

It might be as well that you have a low credit score from paying your CC bill in full each month.

_Andy_

Wickedkitten wrote: »

It might be as well that you have a low credit score from paying your CC bill in full each month.

Paying a credit card in full each month wouldn't result in a declined mortgage application.

Wickedkitten

_Andy_ wrote: »

Paying a credit card in full each month wouldn't result in a declined mortgage application.

It would however result in a lower credit score, One of our friends has actually been declined recently because he pays off his bill every month like a good boy and has a low score.

Mind I'm not saying in this case it's the sole reason it was declined but surely it wouldn't help, no?