Husbands previous debt and buying a house

selbailey

Hi,

I recently married my husband and am completely aware of his bad credit - for this reason we have no joint accounts etc and we aren't financially linked .. We are saving to buy a house which I can afford to buy solely in my name - just to confirm that just because we are married if I have a house in my name his debtors can't chase me for money or take my house?

As far as I'm aware I thought this was untrue although other sources and family members are saying they can

Any advise would be great

Thanks

thenudeone

Buying a house with a mortgage together will create a financial association which means that his credit history may be seen by any lender when you apply for credit.

You can never be forced to repay any unsecured debts in his sole name, but you CAN be forced to pay the mortgage. As you know, your home could be repossessed if payments get too far behind. In that case, you could be held liable for any difference between the mortgage outstanding and the sale price (which could be significantly reduced in a distress sale).

This is largely academic though, because if he already has "bad credit" then you simply won't be able to get a mortgage together.

"Love may conquer all" but in reality you may wish to push any ideas of buying a house together well into the future.

His dishonesty about his money problems would also cause me significant concerns if I was in your shoes.

Getting into a huge debt position (which is what a mortgage is) is unlikely to help him learn to control his money more effectively.

sinizterguy

If his name is not going to be on the mortgage / deeds, then they cannot come after you for his debts.

Thrugelmir

selbailey wrote: »

We are saving to buy a house which I can afford to buy solely in my name

The issue you face is that the deposit comes from joint finances. Again this by default creates an association.

selbailey

Hi thanks for your reply / he was never dishonest about his credit - I new from the start! I owned 2 houses by myself previously and I havnt linked myself with him - I did say in my original post that I would be buying the house solely in my own name x

Thrugelmir

selbailey wrote: »

I did say in my original post that I would be buying the house solely in my own name x

You will need to evidence the source of the deposit.

TheGardener

Although the mortgage would be yours, if your spouse is contributing to the running costs of the household, over time he would , in the eyes of any creditors, acquire a 'beneficial interest' in the property which creditors could pursue. I am not knowledgeable enough to give any more details but I would urge you to speak to an advisor/solicitor in mortgages about protecting yourselves from this scenario before you take out the mortgage.
Its much the same as a divorce - both parties would be deemed to have a stake in a family home regardless of who bought and paid for it.

zuluwarrior31

If they learnt he was party to a mortgage they may go for an equitable charge. If you're living in the same house you are financially linked especially if married. He would be best clearing these before you consider something like a mortgage. Linked or not (always cause of disagreement) he will show on the report and his situation may be taken into consideration. the debt showing as 'satisfied' is not automatically going to make it better but will look a bit better than outstanding

alastairq

If you're living in the same house you are financially linked especially if married.

One is not financially linked by address.

One is financially linked by virtue of joint accounts, joint mortgages,etc

Even if an individual is the account holder for a credit card, but has the spouse named as an additional cardholder, the spouse does not become 'financially linked'.

If the person named on the account defaults, the creditor cannot legally pursue additional card holders.

This is why banks and BS's encourage married [or otherwise] couples to open joint accounts...not because it is the 'right' thing to do, but because the creditor can pursue both parties for the full amount owed, should a default occur.


If linkage was by address, one would have endless issues because of lodgers.

queensland

I was bankrupt, been discharged for about 18 months. Last year my husband bought a house solely in his name. He was never asked where the deposit came from and we were assured that his finances would be fine, we have come across no issues :-)

Thrugelmir

queensland wrote: »

I was bankrupt, been discharged for about 18 months. Last year my husband bought a house solely in his name. He was never asked where the deposit came from and we were assured that his finances would be fine, we have come across no issues :-)

Lenders operate different policies that change at any time. Observations can only ever be generic as individual circumstances widely differ. Hence the standard suggestion to use a broker to do the leg work as a good one will immediately know which lenders to avoid.