Buying with a Partner who has debts.

Unsure1980

Hi, I am looking for advice.

I currently live alone in my house which is mortgaged. I am looking to move in with my partner and buy a property together. My existing mortgage is small so was going to keep this property on and rent it out. This will all remain in my name only.

My query is that my partner has existing debts, in the form of a bank loan approx £15k and a couple of overdrafts for a few hundred each. He has entered into agreements with the companies to pay a token amount each month (approx £5). This has been going on for a couple of years. He is currently in rented property and has no assets.

My first question is:
Will we get a mortgage with his bad debt?
If we do get a mortgage, can they come and take the house?
Should he try to get something more secure sorted with regard to paying the debts.

I look forward to responses. Thanks.

Dave_Ham

You are wise to post first.

He has absolutely no chance of getting a mortgage, whilst he is effectively in a debt management plan.

Additionally, if you did somehow get a joint mortgage and he was chased for the debt and taken to court it may result in a charging order against your property.

That is an aside as unfortunately he has proven he cannot or will not pay back these loans/overdrafts and therefore they would have defaulted him.

You also need to protect your credit score from financial associations, so think carefully before adding him to your current account, taking out Sky in joint names etc.

All the best

getmore4less

Do not do it.

Morgage_Confused

15k will only take 250 years to pay off at £5 per month. Why do banks even entertain such agreements? Is it even worth chasing?

If he just refused to pay wouldn't it go from his record after 6 years?

Unsure1980

Morgage_Confused wrote: »

15k will only take 250 years to pay off at £5 per month. Why do banks even entertain such agreements? Is it even worth chasing?

If he just refused to pay wouldn't it go from his record after 6 years?

I dont know how long they will keep accepting this. Like you state the debt will never be paid.

Unsure1980

Dave_Ham wrote: »

You are wise to post first.

He has absolutely no chance of getting a mortgage, whilst he is effectively in a debt management plan.

Additionally, if you did somehow get a joint mortgage and he was chased for the debt and taken to court it may result in a charging order against your property.

That is an aside as unfortunately he has proven he cannot or will not pay back these loans/overdrafts and therefore they would have defaulted him.

You also need to protect your credit score from financial associations, so think carefully before adding him to your current account, taking out Sky in joint names etc.

All the best

Thanks for your response. I presume the bad debt will show up on the credit check. I know he did have problems when he moved banks last year, they only gave him the most basic with no overdraft and said they would monitor how he used the account for 12 months before considering to upgrade it.

Is it best to declare all debt to the financial advisor we have a meeting set up for later this week. Thanks.

Dave_Ham

Morgage_Confused wrote: »

15k will only take 250 years to pay off at £5 per month. Why do banks even entertain such agreements? Is it even worth chasing?

If he just refused to pay wouldn't it go from his record after 6 years?

They have to consider hardship or issues and all the time they are taking a payment, they keep the debt live so to speak.

In many cases, people see it is an issue and preventing them something (usually a mortgage) and they then approach the lender or debt company by then about a deal.

Not my specialist subject, but many, many of my clients have been in situations and the agents are much keener to get them on some sort of minimum repayment....

All the best

iheartbristol

Unsure1980 wrote: »

Is it best to declare all debt to the financial advisor we have a meeting set up for later this week. Thanks.

I used to work for a high street bank advising on mortgages and our underwriters used to identify debt that the applicants hadn't told us about, quite often too. Chances are if you don't declare it, the underwriters will find it.

Thrugelmir

Unsure1980 wrote: »

Is it best to declare all debt to the financial advisor we have a meeting set up for later this week. Thanks.

Given what you've said. The chances of obtaining a joint mortgage are zero.

Suggest that he moves into your property for a while and you take control of his finances to get them in order.

getmore4less

You are mad to even think of doing this.

Whats his income.
Whats your income.

How much cash are you putting up for this?

What are you going to do when he won't pay his share.

Move into rented together till the debt is paid off.

I asume you know the histiry of this debt and there was no one else involved

DVardysShadow

Morgage_Confused wrote: »

15k will only take 250 years to pay off at £5 per month. Why do banks even entertain such agreements? Is it even worth chasing?

If he just refused to pay wouldn't it go from his record after 6 years?

Banks entertain such agreements because they keep the clock reset to 0 for the 6 year limit for Statute Barring. So if the debtor comes into some money, they can claim.

£k15 is worth chasing - and I imagine would be chased if token payments stopped.