Where do we go from here?

CherryPie606

Hello
First time poster so apologies if this thread doesn't fit here.

I have a mortgage with a friend. We bought together in 2007 just before prices dropped. We have a 100% mortgage with NR. She found out she was pregnant and moved out about a year ago to live with her now-husband, and my fiance moved in, all with the agreement that we would change the names on the mortgage within 6 months. A year later and its still not done.
The reason - my fiance has no credit.
He applied for a 0% credit card through his bank which was silly and of course, he was declined. 3 months later he applied for a credit card with Capital One - an account they list as being for people with bad credit to allow them to build credit, at 37% APR I think. He was declined.
We are both in secure jobs and obviously able to pay the mortgage as we've been doing so for a year, but I know that NR will credit check him. If he can't get a credit card, he's not going to get a mortgage. This is not down to him having BAD credit - he's just never had any. His Experian report all seems fine apart from a basic account with his bank that is over 10 years old but doesn't show on there - and his upgraded account with the same bank that also does not show on there. We have spoken to both the bank and Experian regarding these missing accounts and both say it is normal and there is nothing that can be done about it. Is this right? He has a joint account with me that is a year old that shows on there, and a mobile phone contract that is 18 months old and for which he has never missed a payment.

Our parents are unable to help, and there is no-one else that could take my friend's place on the mortgage instead of my fiance that we could fully trust.

How can he build up credit if he cannot get credit to start with - even on a "bad credit" credit card? We don't want to apply to any more now as they will show on his report and put future credit companies off.

We are obviously in negative equity, which I am fine with as I like the house and we're happy to sit it out. I do not want to sell this house. Apart from the obvious - waiting it out and building his credit report up - is there anything else we can do?

I am at a loss as to where to go from here.

All help appreciated - and sorry for the long post

Annisele

Is your fiance on the electoral roll?

SimbaSimon

CherryPie606 wrote: »

Hello
First time poster so apologies if this thread doesn't fit here.

I have a mortgage with a friend. We bought together in 2007 just before prices dropped. We have a 100% mortgage with NR. She found out she was pregnant and moved out about a year ago to live with her now-husband, and my fiance moved in, all with the agreement that we would change the names on the mortgage within 6 months. A year later and its still not done.
The reason - my fiance has no credit.
He applied for a 0% credit card through his bank which was silly and of course, he was declined. 3 months later he applied for a credit card with Capital One - an account they list as being for people with bad credit to allow them to build credit, at 37% APR I think. He was declined.
We are both in secure jobs and obviously able to pay the mortgage as we've been doing so for a year, but I know that NR will credit check him. If he can't get a credit card, he's not going to get a mortgage. This is not down to him having BAD credit - he's just never had any. His Experian report all seems fine apart from a basic account with his bank that is over 10 years old but doesn't show on there - and his upgraded account with the same bank that also does not show on there. We have spoken to both the bank and Experian regarding these missing accounts and both say it is normal and there is nothing that can be done about it. Is this right? He has a joint account with me that is a year old that shows on there, and a mobile phone contract that is 18 months old and for which he has never missed a payment.

Our parents are unable to help, and there is no-one else that could take my friend's place on the mortgage instead of my fiance that we could fully trust.

How can he build up credit if he cannot get credit to start with - even on a "bad credit" credit card? We don't want to apply to any more now as they will show on his report and put future credit companies off.

We are obviously in negative equity, which I am fine with as I like the house and we're happy to sit it out. I do not want to sell this house. Apart from the obvious - waiting it out and building his credit report up - is there anything else we can do?

I am at a loss as to where to go from here.

All help appreciated - and sorry for the long post

Have you checked his Equifax credit report also to make sure everything is okay on that one? And is he on the electorial register? If so, keep paying the phone contract and perhaps wait 6 months then try another credit card.

CherryPie606

Thank both

He is on the electoral role - and was at his last address too. Both show on his Experian report.

We haven't looked at Equifax. Am I naive in thinking that if Experian is right they all will be? I'll get him online when he gets in from work to check it

SimbaSimon

CherryPie606 wrote: »

Thank both

He is on the electoral role - and was at his last address too. Both show on his Experian report.

We haven't looked at Equifax. Am I naive in thinking that if Experian is right they all will be? I'll get him online when he gets in from work to check it

Different companys report back to different credit agencys.

There is a full detailed list here https://forums.moneysavingexpert.com/discussion/2419785

While they should be very similar, its best to check them both or all three even incase theres a black mark somewhere.

getmore4less

Does he have an overdraft limit on either of the bank accounts, if not that might get them on the credit reports if they will give one.

CherryPie606

Equifax checked and perfect - even contains the account info that Experian doesn't, so all good there.
He has an overdraft facility on his upgraded account but thats only 3 months old

UnderPressure

It really is a catch 22 situation and can be a nightmare, I was in a similar position years ago, you think you are doing right by not having credit and over stretching yourself but no your not, if you have no history of repaying debt then it can be just as bad as 100 defaults! Ridiculous really but thats just the way it is.

The only thing I can think of really and you have already mentioned that both sets of parent cannot help, I dont know if you were referring to finance or not but would 1 of the parents or even a brother or sister be able to "go on" the mortgae with you? Then you partner could simply pay his share to them? Then in a couple of years hopefully this recession madness wil be a lot better, so better mortgage deals, better interest, hopefully no neg eq, and importantly by then a nice strong credit record for your partner so he could then "take over" the relevant share?

I dont suppose there is any chance of you being accepted on your own?

If all else fails will your friend who is currently on the mortgage with you sit tight for a couple of years, obviously your partner would have to pay her share but do you think that could be possible?

Hope it all works out for you, best of luck

CherryPie606

UnderPressure thank you
The idea involving having someone else on the mortgage - a parent, sibling etc - thats an option we've looked at and seems the most sensible but no-one is able to help us with it. Both sets of parents have their own mortgages and it would mean they would be jointly liable if we missed a mortgage payment - which we haven't and have no intention of doing, but is an understandable risk as far as they are concerned.
No chance of being accepted on my own - that would be wonderful but absolutely no chance.

Looks as if it might just be a case of sitting tight then. And finding some magic way to build his credit history *sigh*

Thanks again

Annisele

It's a very long shot, but is there anything in any way 'odd' about either his name or his address?

You very rarely find that if somebody is called, say, "Krystian", lenders search for "Christian" and then automatically decline because they can't find the person. Similarly if the house or road name is "Oak Hill" and the lenders end up searching for "Oakhill", or if the address is "Flat 3, 5 High Street" and Royal Mail's database doesn't have a Flat 3 at 5 High Street.