Poor credit rating but mortgage in my wife's name...

GeorgeB

Hi There

I have a 'not-great' credit rating, Its currently only 'Fair - 833' on Experian with 1 late payment on a credit card of only a few days (so under 30 days).

Our mortgage is only in my wife's name (who's credit rating is good) and the mortgage is pretty small £15k on a £170k house.

We're now thinking of moving to another house that costs slightly more and we'll wish to borrow slightly more as well - £30k on a £185k house.

So my questions are…

1- If my wife stays with her current mortgage lender will they do a credit check?
2- Will my 'Fair' credit rating effect the offer if the mortgage is to remain solely in my wife's name?
3- We also have one joint savings account - so will that tie us both together even if the mortgage is only in my wifes name.
4- Will they even be interested in me at all?

Many thanks in advance for your help!

kingstreet

1 - Yes.

2 - Depends on if you have any joint accounts or associations.

3 - No. Savings accounts don't create an association.

4 - Yes. When they consider you credit worthy.

You may be successful in making a joint application now, but the downside of finding out, is that you'll create a financial association. If you are accepted, that won't be an issue, but if declined, you'll be worse off than you are now.

Put stuff on DD if you struggle to pay things on time.

... and if you are paying for this "credit score" knock it on the head. It means nothing and lenders don't use it.

GeorgeB

Thanks for the speedy reply kingstreet

Yes it is just a savings account so hopefully we won't be linked. The only other things in both our names is the Council Tax bill and she is a named driver on my car insurance.

I think we'll try for the mortgage just in her name and see how we get on.

Yes I put the card on DD after the late payment (a painful lesson learnt)

(... and if you are paying for this "credit score" knock it on the head. It means nothing and lenders don't use it.)

Ah okay, I will stop paying for it, currently paying a monthly fee to Experian. When you say lenders don't use it - does that mean the score that lenders do use could be totally different then???

kingstreet

Lenders take the information stored by CRAs and add to it the information you supply in an application to generate its own score.

You can score 999 and still get no mortgage, because you have no job. A bit extreme, maybe, but true nonetheless.

GeorgeB

Cheers for the help kingstreet, I'll cancel the Experian asap.

GMS

If the only blip on your credit is 1 late payment and you are looking to borrow 30k against a 185k house then you shouldn't have an issue.