Mortgage decline due to financial link....with me

sso3es

Facts;

Girlfriend has a healthy credit score, no debt and a decent job earning about 35k and has 100k deposit to put down

I have a terrible score due to years of burying head in the sand so we knew the application would be in her name only.

We have no joint accounts or anything but had no choice but to enter a joint tenancy agreement as per the terms of a couple living at this house, we also have gas and electric in joint names for the same reason- hence the financial link.

GF applied for mortage in her name only and it was declined because of her links to me.

Not really sure where we go from here- all bills come out of her bank and payments never missed. It seems the only chance she has of getting on the property ladder is to dump me- if we have to be on the rental agreement together how can she ever be dissassociated from me legally.

ny advice? So dissillusioned as to our options now!

sso3es

would really appreciate anyones advice on where we go from here. cheers

silvercar

No reason why the utilities need to be in joint names. Ours aren't and we have been married for 26 years!

I'm curious about the joint tenancy. Would that create enough of a link on its own. I'm thinking that groups of students share joint tenancies but they don't seem to be financially linked in the future.

Mortgage_Mark_2

Contact Experian and lodge a notice of dis-association and they will eventually remove the link between the both of you on any accounts that are not joint.

Dave_Ham

Hi, lets start from the top.

How bad is your credit, when, where and how much as per your credit files?

Not all lenders will be worried about your girlfriend's association with you and some will look at her as an individual.

Did she apply to HSBC or Post Office by any chance?

sso3es

My credit score is about 200.....things are on the mend now (and a lot of the deposit is mine, but that's irrelevent, I know) but regardless of that, I still cant even get a mobile phone so we knew full well the application would be in her name only.

We have no joint accounts together anymore but we did have a joint cash card account for a short space of time in about 2011. Our only other links are from the joint tenancy agreement (prior to that we rented directly from her father hence it's never been an issue) and from the gas and electric that is in joint names too....

We tried to sign a rental agreement in just her name but the landlord insisted that as we were both living there we both had to sign the agreement, and likewise they had to add both of us to the gas and electric when they notified the energy suppliers with who was taking on those bills.

I am not sure if we are within our rights to dissassociate me from her credit score. I appreciate we could go ahead and do it, but i'd worry that is wasnt above board and we'd be forever covering tracks to work around the issue.

FYI, i currently pay her directly each month for my share of the bills and everything comes out of her bank. In that sense I guess we are linked because in order for all those bills to be paid, the relaince is on her bank to have the funds available....but that shouldnt be an issue for the mortgage because we are only basing the amount borrowed on her own circumstances...

FYI it was with Nationwide, given we have 100k and want to borrow between 130-160k, they were by far the most competitive lender for the 5 year fixed fee we were looking to aquire.

Thanks all.

amnblog

Sounds like you just need some sensible advice from a decent broker.

Lovelyjoolz

If you subscribe to experian then it should tell you (in the Financial Associations section) the exact reason/product that creates the link.

I can't see that it's the joint tenancy that's creating the link. I've had joint tenancies in the past and was never financial liked to any of my housemates.

I imagine it's the joint cash account. If the account is now closed there is no problem with you removing the association.

Complete the disassociation form, give it 3 months or so and GF shouldn't have a problem.

Dave_Ham

This is why as a broker we see the good, bad and ugly and know where to place specific cases.

Nationwide rejecting does not mean every lender will.

Additionally, when you have tricky circumstances; picking the most competitive rate is not really the best approach. Ideally you would select the most competitive rate you can achieve.

The source of deposit is a huge issue and will cause a bigger issue further down the line unless you address it now. You cannot gift the deposit to your OH and then live in the property without a registered interest (ie being on the mortgage)

So aside from score (which is irrelevant) what defaults. CCJ's or worse do you have and when are they dated?

Are they satisfied and what is the source of your deposit?

sso3es

thanks all,

So can I say with confidence that a financial association doesnt need to include the tenancy agreement and the energy bills? We no longer have a joint account so that would effectly mean we can dissassociate me without fear of retribution?

To make things more certain I am sure I could remove my name from the energy bills (they come out of her bank anyway) but I dont think the landlord will remove me from the tenancy agreement.

Dave_Ham

Personal opinion is that you are missing the point.

Nationwide will not reconsider this in the near future and just because you have disassociated on Experian, they will still hold the records.

Have a chat with a broker to see what is available and please sort your deposit situation out formally and appropriately.