Can a partners bad credit rating affect my good one?

cottyh24

I'm currently in the process of trying to get a fixed rate mortgage as my current deal has finished. It looks like the only way I'll get it is if my husband and I go for a joint mortgage (it is currently just in my name as I had the house before I married him). Can his bad credit rating affect my good one if I take out a joint mortgage with him?

Thanks for any help.

H

Senior_Paper_Monitor

Not as such - but it may well prevent you getting the mortgage jointly - speak to a whole of market broker (do not approach lender directly) with detailed credit reports available, so you can identify who (if any) will accept the circumstances.

Amended to say catflea is correct, I wasn't thinking properly - again, get the credit reports and put them in front of a broker to come up with a plan (also, be aware if married, not all new lenders - current one will probably be OK - will let you do it on your own and ignore spouse).

catflea

Yes, it can. If you have a financial association - such as a joint bank account then both your credit files would be assesed with any application.

Cannon_Fodder

His bad credit could weaken your new application such that it pretty much offsets the benefit of taking his income into account.

Although the extent of impact will depend on the exact details of "bad" credit.

At the risk of asking a silly question, what has changed since you first mortgaged on your own, that now prevents you continuing with the mortgage on your own?

It may be easier to fix that issue than fix his bad credit.

credit-geek

All great points on this, couple more (bearing in mind the information provided):

- First of all how do you know your partner has a bad credit rating (has he missed payments, have CCJ's)?

Your partner needs to check what his credit status is using the credit reports from Experian, Equifax and Callcredit. Experian and Equifax being the largest credit agencies supplying credit file information to lenders. The mortgage provider will use other details in your application such as salary, your address, any financial history with them etc, but the credit report will influence the application.

If your partner does have a poor credit score (these are just guides), then steps can be taken to improve this, but this takes time.

- If you applied for the mortgage as you alone, and you had a financial association with your partner (for example a joint account, this shows in the financial association section of your credit report), and he does have a poor credit rating then this could negatively impact your application for financial products in general, if there is no financial association and you applied for the mortgage, for example then his credit rating should not impact you.

- I assume in the current strict lending environment, combining incomes would help achieve a higher overall mortgage amount, but in this joint application scenario your partner's credit report is likely to be searched in the application process, so his credit rating will impact the application.

Ultimately I would check your partners credit scores, are there some quick wins? i.e. registering your partner on the electoral roll, searches that could be removed. Overall it depends on the timeframe that you need the mortgage, and the results of checking your partners credit score. Once you know both your credit score (yours is important too), talk to the lender/broker about what the lender is looking for. I would do the most research possible prior to any application, as if you are rejected this search will show on your credit file which could impact other applications. Without harming your credit score, it is not advisable to make many applications over a short period of time...

I recently applied for a mortgage and they need to do a full credit check/search versus a quotation search. They told my wife that her credit file had some issues, but unless she personally checks this i do not know her credit rating or specifics. I am financially associated to her through a joint account., i did not know about credit reports in any detail prior to this application, and it was very stressful to finalise the finance.
As we almost lost our house, be good if you could avoid these kind of issues.

getmore4less

What's your followon rate why do you need to fix?

What offers does your current lender have?

blueberrypie

credit-geek wrote: »

Ultimately I would check your partners credit scores, are there some quick wins? i.e. registering your partner on the electoral roll, searches that could be removed. Overall it depends on the timeframe that you need the mortgage, and the results of checking your partners credit score. Once you know both your credit score (yours is important too),

The credit "score" - the number that the credit recording agency will happily sell you - is absolutely meaningless. Every lender has its own criteria by which it decides whether or not to lend, and they only look at the information on the credit report - *not* the credit score. It is a complete waste of money to purchase the credit score.

Check the credit *report*. Ignore any marketing which suggests you pay for your credit *score*.