Problems getting a mortgage, advice please! :)

bean_123

hi all, this is a first post so be kind.

i'm having some problems and need advice.

the situation:

i've got a morgage for my £100K flat in my name no worries, me and my partner want to move in a few years to a 3 bed house and therefore have been saving for a bigger deposit. (sounds all ok )

the poblem is her sister. she has some issues and 5 years ago (before me and my partner were together) she went on a spending spree and effectivly committed identity theft on several members of her family including my partner and didnt pay the bills. recently we had a letter from a debt collectioon place because her sister had had a phone contract and not paid £500 but its in my partners name!. the family dont want to get the police involved and therefore my gf is stuck with this crap on her record (he sister is paying it but i'm sure it leaves a mark) and we have checked and she cant geta mortgage because of this and other things similar.

i'm stuck in the middle beacuse she should have a clean record and be able to get on with our lives but im worried this si going to hold us back for years to come..

is there anything to do to clear her name but not get her sister in trouble (much as i'd like to)... or what else can be done? thanks

ed

VIGILANT22

The credit file's history goes back 6years...has this gone into default or has a CCJ been issued...in either case the sooner the debt is repaid the better as this will show on the credit file when it was satisfied....Currently lender's are taking a very poor view of deliquent credit files and next to no adverse lenders in the market....but who knows what is going to happen in a couple of years...as we will see more sub prime clients than has ever been known.....

SimbaSimon

bean_123 wrote: »

hi all, this is a first post so be kind.

i'm having some problems and need advice.

the situation:

i've got a morgage for my £100K flat in my name no worries, me and my partner want to move in a few years to a 3 bed house and therefore have been saving for a bigger deposit. (sounds all ok )

the poblem is her sister. she has some issues and 5 years ago (before me and my partner were together) she went on a spending spree and effectivly committed identity theft on several members of her family including my partner and didnt pay the bills. recently we had a letter from a debt collectioon place because her sister had had a phone contract and not paid £500 but its in my partners name!. the family dont want to get the police involved and therefore my gf is stuck with this crap on her record (he sister is paying it but i'm sure it leaves a mark) and we have checked and she cant geta mortgage because of this and other things similar.

i'm stuck in the middle beacuse she should have a clean record and be able to get on with our lives but im worried this si going to hold us back for years to come..

is there anything to do to clear her name but not get her sister in trouble (much as i'd like to)... or what else can be done? thanks

ed

Don't see how you can have it both ways. Either its fraud and its reported and wrote off or you pretend it isn't and your partner suffers because of the her sisters consequences.

bean_123

VIGILANT22 wrote: »

The credit file's history goes back 6years...has this gone into default or has a CCJ been issued...in either case the sooner the debt is repaid the better as this will show on the credit file when it was satisfied....Currently lender's are taking a very poor view of deliquent credit files and next to no adverse lenders in the market....but who knows what is going to happen in a couple of years...as we will see more sub prime clients than has ever been known.....

once it's repaid is it good as new or is it still a black/red mark and therefore no mortgage? i'm not sure what defines default but i believe it shows on a credit check, CCJ has never been mentioned but how would we know? (before we got this letter there was nothing on her experian cerdit report)

JA1000

It's will still be there, have you checked her credit file, do it online now and pay the £500 tomorrow, subject to any other surprises that may come up. As mentioned before the sooner you do it, no point saving for a deposit without clearing this.

Then get the sister to pay your gf back. If the family want to keep it internal then sort it out that way, but charge her interest!!!!

Property_Guru

Hi there,
this is my first reply so, be kind!
There might be another route to consider which is called an option. When you want to go ahead and buy your new house, you can ask the vendor for an option to buy the property within the next 3-5 years. The only thing this will save you, is having to go to a bank, because you can then reach an agreement with the seller to exchange contracts but only complete in a few years time once your gf's name has cleared and you can get a mortgage. In this way you can still go ahead and get the house you want. Usually you will have to pay an upfront deposit, but this can be subtracted from the selling price. Also, you set the price the day you sign the contract, so you know how much you need to pay and that price can not go up. There are some websites where you can register that you are looking to buy a house in this way and in your area. Also, there are certain solicitors who only deal with these types of contracts that will make it much easier.
As I said, this is a very different approach but, it might come in handy.

Good luck

dimbo61

Whats happened to your G/F has happened so clear the debt asap as others have said and then overpay your current mortgage and build up savings in ISA,s in both names.
The more equity you have in your property the bigger deposit you can put down on the next property so overpay and save.

Mini_Bear

is there anything in place to stop your girlfriends sister doing this again when she is short of cash?
Surely she should be punished for this, as your girlfriend could have a poor credit record for the next 6 years if she keeps quiet!! Its all very well saying the family dont want to get the police involved but what if it keeps happening?!

bean_123

thanks for the replys,

this happened about 2005 /6 time but we just dont know what else is out there. this didnt come up on her credit check 6 months back... how can we know what else is out there?

its being payed off but that will leave the default for 6 years is this correct?

the family say that they'll have to do what ever it takes to clear my g/f name but i'm sure they wont go all the way.

VIGILANT22

bean_123 wrote: »

thanks for the replys,

this happened about 2005 /6 time but we just dont know what else is out there. this didnt come up on her credit check 6 months back... how can we know what else is out there?

its being payed off but that will leave the default for 6 years is this correct?

the family say that they'll have to do what ever it takes to clear my g/f name but i'm sure they wont go all the way.

Everything has consequences and in this case if prosecution is not an option then your gf will have to carry the consequences....."It wasn't me mam" wont sit with credit agencies.........

bean_123

i know and believe me i'm trying to make her see this, h sister has committed a crime against her and not one that can be undone..

out of intrest how is it that this kind of thing is so easy to do? ... the phone contract was taken out and delivered to her sisters address, on her sisters email, phone number, bank acount (initially) etc just with my g/f's name and DOB.... how is this possible?