Don't want joint mortgage due to OH's bankruptcy, but now classed as a lodger!

tiggerbabe

Help!

When I was single, I went through a Trust Deed, but my credit file will be clear as of January '11 as that will be 6 years since it happened :j . I am so relieved as it has been a long painful period, but definately a learning experience I would never want to repeat again! I have made sure that since it happened, I have not missed a payment to anyone, and I check Credit Expert weekly to make sure everything is ticking along fine.

However, last October, my boyfriend had to make himself bankrupt after a failed house purchase. The market had just crashed and he couldn't sell his house, but stupidly thought he would have no problem doing it so had signed on the dotted line for his new house but then had to withdraw. The couple he was buying the house from sued him for £50k loss of sale value and "stress" - I had to laugh at that last bit, we were the only ones that suffered great amounts of stress! :mad:

As a result, he was declared insolvent on 16th October last year, so thankfully, he will become a Discharged Bankrupt this Saturday :beer: although he will have to continue paying the BR money for another 2 years at £220 per month...........

Unfortunately, the equity in his house was very large (well, large for us), at just over £18k, and the only way he could keep his house was if I paid the equity and now effectively own a large chunk of the house . That meant me having to give up my rented flat in February this year and move in with him, and he continues to pay the mortgage. We couldn't afford to keep both houses going and pay the £755 per month equity money, plus the mortgage, the bankruptcy contribution and all the other household bills.

Before all this happened, last September, I got a personal loan from the Clydesdale for a car purchase - I was totally shocked as I was really not expecting them to accept me as my past credit history still showed me as having had a discharged Trust Deed. But, I have made every payment on time, and my credit file is looking rosier every month.

Then comes the problem. A few weeks ago, I was looking to refinance this loan with Clydesdale again, as it was taken on with a pretty hefty APR due to my previous history, and also to fund some work that needs doing in the bathroom. Imagine my shock, when I was told that I had been declined as I am now classed as a "lodger" as I am not renting in my own name, and the mortgage is in his name as I don't want to be financially connected to him at present! :eek:

The bank gave me a loan, when my credit file was way worse and I was a single parent with a single income. Now, I am engaged and living with my partner and technically own half a house, albeit not in name!

So whatever happens, after all my hard work, I am screwed for future finance!

I will be screwed if I put my name on the mortgage (which I probably should do for my own security), and I am screwed if I don't as I am forever going to be a lodger! :mad:

Thoughts anyone!!!?? Has this happened to any of you guys and what did you do about it?? :doh:

RAS

Are you in Scotland?

tiggerbabe

Yes, but ask me that again after Spain thrash us later on this evening!

tiggerbabe

sorry, but had no response so having to bump

tiggerbabe

Still no response to this

Can anyone help- my credit file is totally clear now and to me looks absolutely fine, no trace of my old Trust Deed, or any of the debts that caused it as they are all over 6 yrs old.

However, due to my residential status I can't get any credit!

Am I better to get my name on the mortgage - or just accept the fact that I will have to remain a "lodger" forever and neither of us can get any credit in the future so what was the point in me clearing my credit file up!

Yargo1

Hello... I have no idea but wanted to "bump" this back up for you! x

iwanttosavemoney2008

Well as your OH has his name on the deeds could he be your landlord and give you a rental agreement? that way you would be renting on your own again?

sorry not much help i know

tiggerbabe

Thanks, is that the only solution?

Seems as thought I am having to go backwards now that I am 39 years old, have an 18yr old son and am paying a massive equity to keep the roof over our heads - makes me sound like a student renting off my fiance landlord lol!

What a nightmare - I am hoping almost a year since my original post that someone has an actual technically correct answer as I would love to know what to do for the best so as not to make the situation any worse!

ps, we only have 6 payments left out of the £18k bill which I am really, really proud of

pps, I am getting used to almost every food product in our house having a yellow "reduced" label on it lol