Getting mortgage together one partner bad credit?

catlover32

Hi - my partner and I are expecting a baby and looking at buying a house in joint names.

Lucky as I am, my partner can well afford the mortgage by himself - he is the highest earner by far.

In the past I have had a bad credit rating. Currently, I checked on Credit Expert and my credit rating is apparently very good, which surprised me. However, I still have around £15k outstanding debt, plus I own a house myself which I rent out and this house does not have much equity in it.

Before going ahead and applying for the mortgage, I just want to ensure that my previous and current financial problems won't effect the outcome.

I have heard that most banks looks at the credit rating of the highest earner, in which case there shouldn't be a problem. Is this the case?

What should we do otherwise? Get it solely in his name and sign some kind of separate agreement saying that I'm contributing to the mortgage?

Also (finally!), we have not yet got a joint bank account. Would we get turned down for one of these too based on my financial past?

When you're not married - it bizarrely feels like more of a minefield than otherwise!

Thanks for any help,

CL
:eek:

herbiesjp

I have heard that most banks looks at the credit rating of the highest earner, in which case there shouldn't be a problem. Is this the case?

Not true.

They look at both, and if there is a problem with either of them, it will affect the other.

What is bad about your credit rating?

Do you have CCJs, defaults etc? Or is it the size of your debt that is worrying you?

catlover32

Hi - thanks for your reply. I don't have any CCJs or defaults etc., so I guess it's the size of the debt. As I say, my partner can well afford it all on his own, but I'm worried this will somehow effect the mortgage application.

catlover32

Sorry I should have said that I look at credit expert - 6 months ago I did have a very poor credit rating. now it suddenly seems to have changed to 'very good'. I still have the same debt - I'm not sure why this is.

TrickyDicky

If he is applying as sole applicant, your history has no effect whatsoever. It only has an effect if you do a joint application.

herbiesjp

catlover32 wrote: »

Sorry I should have said that I look at credit expert - 6 months ago I did have a very poor credit rating. now it suddenly seems to have changed to 'very good'. I still have the same debt - I'm not sure why this is.

You need to find out.

Have you had adverse credit that has now fallen off your credit file?

Have you put yourself on the electoral roll?

catlover32

Hi thanks - I'll have a look at the adverse credit. How would I spot this? Also I am definitely on electoral roll.
Can he be a sole applicant for the mortgage, and me still be on the deeds?

herbiesjp

As long as the debt and the mortgage is affordable no reason why you cannot be on the mortgage as well.

If he want to have the mortgage is his name then that is fine, but his name only would go on the deeds.

You may to speak to a whole of market mortgage adviser, in terms of looking at affordability and how the debts would affect the application.