Administration order and mortgage application

hkminca

Not sure if this is the right place but here goes...


If one person has an excellent credit rating, no loans or debts and a second person has an administration order (and presumably CCJ's) is this likely to effect a new mortgage application if made as a couple, once the order is paid in full?


Or would it be better for the person with the good rating to just apply for the mortgage in the one name and leave the other off it?


How would a paid up order effect someone's credit rating? Would the person be able to offer an explanation as to why they racked up the debts to potential new loans companies? The debts were run up due to the person's partner being terminally ill and not due to bad money management.


Thanks

Tixy

hkminca wrote: »

If one person has an excellent credit rating, no loans or debts and a second person has an administration order (and presumably CCJ's) is this likely to effect a new mortgage application if made as a couple, once the order is paid in full?

Yes any negatives on the credit file of either applicant will affect the chance of being accepted for a mortgage product and the rate which you may be offered.

hkminca wrote: »

Or would it be better for the person with the good rating to just apply for the mortgage in the one name and leave the other off it?

Could be an option. If the 2 people are financially associated on their credit files (if they have any joint accounts) then any credit application search will mean that the potential lender would see both their files anyway.

hkminca wrote: »

How would a paid up order effect someone's credit rating? Would the person be able to offer an explanation as to why they racked up the debts to potential new loans companies? The debts were run up due to the person's partner being terminally ill and not due to bad money management.

Evidence on a credit file of an administration order, like CCJs or a record of insolvency, or defaulting on debts will be viewed as a higher risk borrower than someone who has repaid all debts/commitments on time.

You can add a 'notice of correction' to your credit file to add further information, and whilst any potential lender would read it, it may not have much impact on their lending decision.

hkminca

Thanks Tixy, I thought it might be best to keep separate bank accounts etc.