First Time Buyer joint mortage - partner with no credit history

t0m_2

Hi all!

My partner and I are just about to embark on purchasing a property. I have a perfect credit history (number of credit cards + other credit accounts always settled in full, no black marks at all). My partner, on the other hand, has absolutely no credit history. She has never had a credit card, mobile phone etc., but is on the electoral roll. When we did a credit search for her (Experian) it returned nothing.

Between us we have a deposit in excess of 25%, but I would like to include her on the mortgage application. Will her zero credit history affect our chances of getting a mortgage (vs. me applying on my own)? I am trying to ascertain whether I will be any worse off applying with a joint application vs. applying on my own.

Thanks

beecher

Didn't it come back with her electoral roll details? She shouldn't have no details at all.

t0m_2

Sorry, yes - it did come back with the electoral roll details!

Soot2006

My OH and I are in this situation.

His only credit history was a Virgin Media account and Barclay's overdraft.

Me = nothing! Not even my bank accounts showed up.

However we are both on electoral roll and had adequate deposit. We borrowed from the Northern Rock after discussion with broker. Broker said he'd often had luck with the NR for clients with little credit history (provided no bad history and solid employment history!) ... We have no problems - they just wanted several months worth of bank statements & payslips from my OH (only bank statements from me as currently studying).

t0m_2

Thanks Soot2006 - excellent advice!

Any more for any more?

jamesd

Once you have the mortgage your partner should consider taking out a small personal loan with a lender who reports payment status to all three credit reference agencies. Pick one that allows overpayments, then overpay all but a few hundred Pounds. After that let five years of on time payments be reported to the credit reference agencies to build up a record of on time payments. Ideally, use a bank account that's dedicated just to repaying this so there's minimal chance of any problem with the payments.

Also worth getting a credit card and putting a regular bill of some sort on it just to get that and its on time payments reported.