Improving our credit rating

MaximusPrimal

Hi.

We are selling our home to pay of some secured loans and avoid repossession of our home which we are going to court to sort out on Thursday. We know we cannot get a mortgage at the moment due to our credit history on the loans (one is in arrears and has defaults against us). So the plane is that we will got into rented accommodation for a while while we get ourselves back on track and put most of the money left over from the sale of our home away for a deposit when we are in a better position in respect of our credit rating.

For personal reasons I must NOT have a bank account to ensure I cannot gain access to the family's money and finances. Same with a credit card etc. So I am going to give up ALL bank accounts/cards/credit cards in my name and let my wife take over full financial handling for our family with my salary going into her account as of next month. We both know that I am the cause of the problems and not her. The idea being to show we have understood the problems and taken steps to rectify them.

The money I have as of next money will ALL be given to me by my wife, when I ask for it and prove I have spent it where I say (e.g if I ask for £50 for petrol, my wife will want to see a receipt for £50's worth of fuel). My personal money will be limited to £10 per week and if I run out. Tough.

The issue I see is that if we look for a mortgage in 2 or 3 years time, there will be little or no current credit history for me. Will this cause more harm than good and if so what is the best way to deal with it? Even if the mortgage is solely in my wife's name if needs be?

Any thoughts on this?

tiggy748_2

im married but the mortgage is just in hubbys name. Unless you need your income to prove affordability? I might be wrong but if you are regularly paying into your wifes account this would then be classed as her income. Not legally mind, but mortgages always ask me about child benefit, maintainence etc and include this in any affordability assessment. It sounds like you have a strong marriage and a good wife so this might work for you?

how about keeping one card in your name, adding your wife to this account, chop your card up - your wife withdraws your 10 in cash each week (i know horrid way but...) she then immediately pays it off? she could also get authority on the account to change all the pin and passwords which would eliminate temptation. The credit (plus score and history) would still be in your name not hers, just not the card.

Another way would be for her to transfer the money off the card into her account to give to you. This way there is no phsical card.

Another way is a pre paid master card. Worked ok for my husband after an IVA, three years after paying the IVA off, he got a mortgage.

Thrugelmir

MaximusPrimal wrote: »

Any thoughts on this?

I applaud you for recognising and addressing your own issues. Takes a lot to stand up and admit ones own faults.

Don't worry about the impact on your own credit rating at the moment. Focus on resolving the issues at hand. There's no reason to believe that you won't won't reform yourself in the future.