Bad credit-is it worth being added to mortgage?

loublogs

My partner currently owns house with friends, the friends want to sell up and we are no considering taking over the mortgage. They have paid off 20% of the mortgage in 3 years and there is approx 79000 left to pay.

I have a pretty poor credit rating though have spent last 9 mths improving it. My question is how likely will the building society take off the friends names and replace it with mine? My partner earns 15000 per annum so building society may not let him take on the mortgage on his own.

pinkshoes

If you have a bad credit rating, then are you sure your partner will want you on the mortgage?!?! You would then ruin his credit rating by having a shared financial product!

CLAPTON

what do your credit records say
how much do you earn

loublogs

pinkshoes wrote: »

If you have a bad credit rating, then are you sure your partner will want you on the mortgage?!?! You would then ruin his credit rating by having a shared financial product!

I am aware of this, though it's him looking to buy together more than I am!

loublogs

CLAPTON wrote: »

what do your credit records say
how much do you earn

Haven't checked my score recently but have entered payment plans with my creditors.

I earn 25000.

loublogs

CLAPTON wrote: »

what do your credit records say
how much do you earn

Just to update, my credit score with experian is 615. So pretty low.

poppysarah

loublogs wrote: »

I am aware of this, though it's him looking to buy together more than I am!

Him looking to save having to move ...?

loublogs

poppysarah wrote: »

Him looking to save having to move ...?

Well, they've got a good mortgage at the moment, 1.25% so it'd be cheaper than us renting - we'd get a fair amount of enquity if we did the house up a bit and then sold, hopefully for a profit.

We will not be remortaging but I will be added to the current mortgage.
We earn £40000 p.a. between us.

hazyjo

Are you sure the house would make a profit? Who's telling you that... your BF? The majority of properties have considerably fallen in value from 3 years ago and are much harder to sell. 'Doing up' a property does not automatically add value. Careful you don't end up saddled with debt.

You have to be 100% committed to this being a long term relationship - obviously some will fail, but don't rush into it so your BF doesn't have to sell his home. If the time's not right for you both to buy together (which is effectively what you'd be doing), don't do it. You'd also have to work out who would get what if you did buy into it and if you did split up in the future. How many years left on the mortgage? Were they all overpaying?

How much debt do you currently have?

You can't just swap names over so would have to be approved for the mortgage. If there's considerable debt still, I'd say it's not looking too good...

Jx

loublogs

hazyjo wrote: »

Are you sure the house would make a profit? Who's telling you that... your BF? The majority of properties have considerably fallen in value from 3 years ago and are much harder to sell. 'Doing up' a property does not automatically add value. Careful you don't end up saddled with debt.

You have to be 100% committed to this being a long term relationship - obviously some will fail, but don't rush into it so your BF doesn't have to sell his home. If the time's not right for you both to buy together (which is effectively what you'd be doing), don't do it. You'd also have to work out who would get what if you did buy into it and if you did split up in the future. How many years left on the mortgage? Were they all overpaying?

How much debt do you currently have?

You can't just swap names over so would have to be approved for the mortgage. If there's considerable debt still, I'd say it's not looking too good...

Jx

Thanks for this.

We hope that the house would make a profit, thats both of us saying that. I am aware the state the market is in at the moment. We are aware of the risks involved.

Re: Our relationship, we are in the right place to commit to something like this and are keen to do things the right way BUT I do not want him saddled with my debt/credit score. Which thanks to him is minimising....

They were all overpaying and have paid off £20000 in 3 years. They are paying approx. £535 capital each month and about £85 interest

I owe around £6000 (just under) so not a massive amount but still big but my credit score is quite low at 615.

If I am paying creditors back in instalments , can I put a notice of correction on my credit report?

[Deleted User]

loublogs wrote: »

Thanks for this.

We hope that the house would make a profit, thats both of us saying that. I am aware the state the market is in at the moment. We are aware of the risks involved.

Re: Our relationship, we are in the right place to commit to something like this and are keen to do things the right way BUT I do not want him saddled with my debt/credit score. Which thanks to him is minimising....

They were all overpaying and have paid off £20000 in 3 years. They are paying approx. £535 capital each month and about £85 interest

I owe around £6000 (just under) so not a massive amount but still big but my credit score is quite low at 615.

If I am paying creditors back in instalments , can I put a notice of correction on my credit report?

Is this something that has to be done now? Or are all the current home owners in a position to wait until you are debt free and you have a chance to improve your credit score? If there's an option to wait I would do that.