Mortgage & credit rating query

145dude

I moved in with my girlfriend a couple of years ago whilst renting out my property, which I have finally sold.

I want to be added to my girlfriends mortgage, however, she has a poor credit history. My credit history is very good.

(I want to be added to the mortgage, not only to contribute, which I understand I could do without being named, but to have 50% share of the equity, etc).

Will me being added to the mortgage affect my credit rating?

Also, I suspect the mortgage isn't the most competitive, would me being added (if not detrimental to my credit rating) actually improve the chances of finding a "better" mortgage?

I've calculated the LTV required would be 75%

kingstreet

145dude wrote: »

I moved in with my girlfriend a couple of years ago whilst renting out my property, which I have finally sold.

I want to be added to my girlfriends mortgage, however, she has a poor credit history. My credit history is very good.

(I want to be added to the mortgage, not only to contribute, which I understand I could do without being named, but to have 50% share of the equity, etc).

Will me being added to the mortgage affect my credit rating?

Also, I suspect the mortgage isn't the most competitive, would me being added (if not detrimental to my credit rating) actually improve the chances of finding a "better" mortgage?

I've calculated the LTV required would be 75%

Regardless of you being included, she could approach her existing lender for a product transfer to see if they would offer her a better rate. You aren't normally credit checked in such circumstances. If she's been behind with the mortgage payments, they may not entertain a change now. Moving to another lender is probably not an option at this time.

You also need to approach the lender for a transfer of equity. This involves you being vetted for the mortgage, and if accepted being included on both the mortgage and the title to the property. There will probably be an admin fee payable to the lender and solicitor's costs to pay. A total of around £400 would be about normal.

You will associate yourself financially with your partner by following this course, so in the short-term you may find yourself affected by her adverse credit history. At the same time, you may improve her situation as your positives may balance her negatives.

You can talk about the product transfer at the same time as you discuss the transfer of equity. An independent or whole of market broker will analyse your circumstances and be able to broaden your options, if possible.

145dude

Thank you for the reply, I found it very useful.

This week I will get a better understanding of exactly what the existing mortgage situation is and take it from there.

Thanks again.