Housemate in debt, have a joint mortgage

double0

Hi,

Not sure if this is exactly the right board to post this on, but here goes...

A friend of mine (honestly!) has a joint mortgage with his housemate. However, his housemate has got himself into a lot of debt and now has an IVA. The mortage itself has not been defaulted on and this is the only linked financial product they have. My friends credit rating has been impacted and he cannot get accepted for any credit cards because of his housemates debt (assuming the card companies are going on a blacklisted address here and not personal circumstances?).

Is there anyway he can repair his own credit rating without having to sell the house? And is it feasible that a creditor could get the house sold and use all of its value to clear his housemates debt (not just his housemates share of the property)?

Any help would be much appreciated.

double0

Help anyone?

JA1000

Assuming the debt is unsecured??

Any negative equity?

inca_2

Addresses don't get blacklisted so it won't be the address that is causing the problem for your friend. As far as what creditors can do my knowledge is a little limited there but I'm sure someone more in the know will be around at some point to help. How is his own credit situation? any missed payments? is he on the voter's roll at the address?

LilacPixie

joint mortgage would mean he has a financial link to the person with the IVA. HAs his IVA been accepted?

Pincher

If the mortgage is marked as involved in an IVA,
and it shows up in his credit file, what do you expect?
If so, even using a different address won't help.

JasX

Yup, so long as he has a joint product with the friend he'll be financially 'linked' to his friends trashed credit record and he'll be affected, no matter where either of them are living or move to.

When he no longer holds the joint mortgage he'll be able to get the financial link 'severed' and it'll be as tho he never knew his friend or was linked to him and his record will be clean.

The joint mortgage will be the sticking point and your friend will have to make sure it stays up to date and never in arrears/deafult. if your frend IVAs and/or goes bankrupt shouldn't affect your friend so long as he keeps up payments on the entire mortgate himself as he's equally liable for both halves with it being a joint thing.

Fastest way for your friend to get a clean credit rating will be to remortgage in his own name only if he can afford to and find a mortgage lender willing to do that.

other method of remortgaging so they have separate mortgages of half each will likely be a non flyer as your friends friend with the trashed credit rating prob won;t be able to get a mortgage in his own name..... (unless he has well off parents who might want to take out a mortgage on their errant son's house)