Iva / credit scoring

bobby06

Hello,
I would appreciate any help on the following.

I have recently entered into an IVA, I share a home and have a joint mortgage with a relative (with Natwest), we have never defaulted on our mortgage payments.

I however had massive credit card debts and a loan with Natwest Bank and entered into an IVA as I could no longer make the payments.

The problem is my relative has applied for a M&S credit card and been refused. I would like to know if this is because of my credit rating at the property. My relative has lived at the property for over thirty years with myself and has no debts, she has a couple of credit cards solely in her name with outstanding balances but is uptodate with the payments, though she may have had late payment charge in the past.

My relative thinks it is because I have an IVA at the property and she will never be able to get credit again.

Can anyone advise if this is the case.

Anondebtadvisor

I dont think the refusual is due to your IVA - a credit score relates to the individual and not the property.

Lending criteria has tightened up in recent years so maybe it is just to do with that

techno1029

Not an expert but if you share a mortgage and you have an IVA there is a financial link with each other and this can affect credit scoring???

bournemouthboo

I was on a mortgage with a person with an IVA current and I couldn't get a sausage. Since then I have no problems even though my credit is not the best. I had to remove the financail link between us by writing the Credit reference agencies.

MoneySaverLog

Yes you have a joint mortgage. One party is in a IVA, both parties credit file will be affected.

National_Debtline

Hi bobby06

We can only suggest to your relative that she adds a Notice of Correction to her credit file (credit reference agency can advise on this) to stress that your respective finances are handled as separately as they can be under the circumstances.

This will mean any assessment of her credit file has to be done manually by an underwriter rather than fed through the usual computerised system - she won't be any more guaranteed to get approval for a given product but it does at least allow for a greater degree of discretion on the prospective lender's part.

NDL