Loan for Girlfriend's Deposit

branney

Hi, girlfriend was refused on 1st time mortgage (100% LTV). She has not been refused credit before, or missed payments.

She owes £3750 to credit cards. She had some others which she was not using, which she closed. Does this look better, as she has less credit available now? Or worse, as she is close to using the maximum of the credit which is left?

She applied (stupidly) using my address, and now it is showing up on her credit file. She is not on the electoral roll here, and her bank/c.card/mobile statements still go to her parent's house, where she still lives most of the time.

Do you think that is the reason she was refused? And can she write to the credit reference agencies to have it corrected?

Also, her sister has same first initial and middle initial as her. Her sister's applications for a bank account with overdraft are showing on her file. Is this normal? Might the institutions somehow think they are the same person, despite different dates of birth?

My idea was I will take a loan to pay the cards and a 3% deposit on the flat for her. Do you think this would swing it? Or is it the credit file details that are the problem?

I appreciate the help!

jonesMUFCforever

She is digging a hole and getting into a mess which will be multiplied further if you attempt what you are thinking.
Let her pay off the credit card and save approx 5% deposit and try again when this has cleared.
At this rate her credit worthiness will be shot to pieces.

branney

oops, should have made myself more clear. the loan would be taken out by ME and given to her for the purposes of paying off her debt and a deposit!

then her credit will be better for the mortgage, yes?

we just got her credit score (£4.99 from Experian Credit Expert) and it is 555, which is listed as "Very poor". How can this be, when she has had credit cards for 3 years and not missed a payment? Is it due to the fact they are near the limits?

magentadreamer

How much debt does she owe? That could be a reason for poor credit rating if her debt to income ratio is pretty high. Also building society's take into consideration debt ect when issuing mortgages -I'd have thought they'd be tighter still with 100% mortgages. Personally she'd be better off repaying her debts and saving for a deposit. And no having her Sisters bank account on her CRA report is not normal.

branney

She has £3000 spread over 2 credit cards, a loan for £2600 (around £2400 still owing), and £1000 overdraft (mostly used up by payday). Her earnings are £13000 p.a.

Her sister's thing shows up under the 'CIFAS' section. On 07/12/05 and 03/02/06 her sister is showing as applying for a Personal Current Account, both with different banks. I hasten to add they both list her sister's full name and date of birth, as opposed to my girlfriend's!

Under each CIFA the 'Type of case' shows "Application Fraud (Facility Refused) Use of a name reasonably believed to be genuine, but with one or more material falsehoods in personal details or other relevant information – the facility was refused."

Is this the trouble? I just don't see how they could add fraud to my girlfriend's credit report, when her sister gave a completely different name and date of birth!? None of my girlfriend's mail has gone missing, so we have no reason to suspect her sister is attempting Identity Theft! Should we?

magentadreamer

Yup! It looks as if they think she's attempting to defraud them!

branney

do you think it would be fixed if she moves all her cards etc on to my address? or can she write to experian to say she has no financial connection with her sister? her sister does not live at the parents' address any more, but might still be using it, and i just found out the sister has run away from a barclaycard debt!

magentadreamer

I think she needs to talk to experian explaining that they have her sisters details on her credit record.

If she's not on the electoral roll for your address she'd still run into problems when applying for credit.

exil

Your gf is in an extremely deep hole. Tell her to stop digging.

beautifulgorgeous_2

If you are thinking of lending your GF a large sum of money then you must think that you will be together for a long while, why then is she wanting a mortgage in her own right?

jonesMUFCforever

branney wrote:

She has £3000 spread over 2 credit cards, a loan for £2600 (around £2400 still owing), and £1000 overdraft (mostly used up by payday). Her earnings are £13000 p.a.



She owes nearly half her salary in debt!
She (according to your post) is up to her overdraft limit before every payday!
She earns £13k per annum which at even 4 times salary means a max mortgage of £52k. (even 5 times would only give her £65k) What would this buy her - where I live a terraced house is in the mid eighties as are ex - council houses. If she did find something cheaper it probably would be a dump and she would not have any money to do it up or it seems to pay solicitor costs etc never mind extra bills such as council tax,utilities etc.and of course most important of all her monthly mortgage repayment.

You really need to sit her down and point this out to her. She may not listen but IMO no responsible lender will give her anywhere near a 100% mortgage with her debt to salary ratio.
She really needs to batten down the hatches - cut out ALL uneccesary spending and drive down those debts before even thinking of getting on the property ladder.

If you decide to get the loan please note that this will become your debt and your responsibilty to repay whether you stick together or not.
It is none of my business why she thinks she has to go into this on her own unless you can see the drawbacks and don't want to spoil things by telling her some home truths.