No mortgage because of husbands credit file

Gymbugsy

Hi, we've been trying to get a mortgage to buy a house. Firstly my son & husband were taking this out as I'm self-employed & we thought this would be easier. Unfortunately they didn't like my husbands credit file & said we wouldn't get the mortgage. So we decided that myself & my son would take the mortgage out but we were told that my husbands credit file would still stop us from getting the mortgage because I'm married to him.

We have no joint finances!

The other option was for me, as a co-owner on my Dads house to take out a remortgage on his house (fully paid for, no mortgage) add this to our 25k deposit, put this down as a large deposit on the new house & then my son get the remainder on his mortgage. Sounded plausible. Just found out today that I would still be refused the money due to being married to my husband & his credit file!!

Feeling very frustrated! Does anyone have any ideas?! I didn't think your partners financial status affected yours unless they're in joint names?!

ValHaller

Who is telling you that your husband's credit file is a problem? It seems that they think you may have some financial link.

RobertoA

Actually, this is the first time I hear about such a problem. Did you provide your financial reports with the application? something that prove you are not in shortage of money? and YES, unfortunately, saying that you are self-employed doesn't make things easier! they got worried about your financial future... Sorry, I didn't provide so much help.

Dave_Ham

Some lenders will link your financial position, not all though by any stretch.

I would suggest you firstly get Husband's Experian, Equifax and Call Credit reports and then sit down with a decent broker.

You firstly need to establish if as a couple you are able to achieve a mortgage and on what terms. Compare this against the terms of sole name mortgage (or joint with Son) and weigh up where the deposit is coming from and if this will be an issue.

Your broker will hold your hand through this process and advise the best course of action.

All the best

Gymbugsy

Thanks for the replies so far.

It's the mortgage broker who has told us that the mortgage company are linking me financially with my husband.

We have NO financial accounts/debts etc together.

My husbands credit file shows some defaults and missed payments, hence why they've turned him down.

My son can get a £85k mortgage, we have £25k deposit so I only need a remortgage of £60k, against a house worth £150k, fully paid for.

This one thing is stopping us from getting the house we want!

Anymore help would be greatly appreciated, time is running out!

Dave_Ham

Ok, when was the most recent default listed on your Husband's file?

There are clearly more than one way to attack this, although raising it all on new property on joint names should be the simplest subject to the above.

Leaving the other property out of it is likely to be quicker, cheaper and easier if it can be done...

Gymbugsy

The last default shows Jan 13 but he actually defaulted on it back in 2011.
He's been paying another company since that date but obviously that doesn't show on his credit file. I think the Jan 13 is when the debt was passed onto another company.

We've always kept our finances separate, now I wish I'd kept an eye on his!

ValHaller

Gymbugsy wrote: »

We've always kept our finances separate, now I wish I'd kept an eye on his!

You need to get the statutory reports from the Credit Ref Agencies for both of you to discover why you are financially linked. I am fairly certain there will be something, possibly trivial like a mobile phone deal or from the depths of time.