Partners debt confusion

emmabarth

My partner and I are hoping to be able to get a mortgage over the next year or so (we are currently renting). I am completely debt free and have savings, whereas my partner has debts of approximately £15k which were incurred while he was in his past relationship, all except two are in his sole name.
He is not incurring any interest or charges on the debts and until recently he was using Payplan. We have decided not to use them anymore as they made some errors so are going to be paying the debts off directly and hope to make some offers to the creditors to reduce the debt and clear them sooner.

What I am unsure and confused about is, as we hope to get a mortgage, should I use my savings to help clear his debts, even the ones that are in joint names with his ex (that she is not contributing towards)?

It took me a long time to be in the financially secure position that I am in so feel very anxious about this situation but I want to make the most sensible choices so that we are both secure.

Any advice would be very much appreciated.

ryedweller

Please can I suggest you get some advice from a mortgage broker, not your bank or building society but a broker.
I don't think your partner will be able to get a mortgage until a few years after the debt has been cleared.
The broker may be able to help you get a mortgage in your name only and you will need all your savings for the deposit and solicitors fees.
You might have to settle for a cheaper house to begin with.

Tixy

I wouldn't personally at the moment.
Especially given that they are not charging interest. As you are not married if you will be contributing all of the deposit then I'd possibly be wanting to look at a deed of trust regarding ownership between the 2 of you.

I know people may say that if you are buying a house together then you should be thinking in terms of joint finances, but I'd keep your own savings secure in your own name for now.

How long does partner think it will take him to clear the debts without assistance from the savings you already have?

Are the debts still showing on his credit files? or have they already dropped off?

andyfromotley

Nope,

his debts, his responsibility. You could of course split up next week!! (hopefully you wont of course)

As said above i doubt your other half will get a mortgage at the mo, so it may be down to you and you will need every penny you can get for your deposit.

But there is a wider point about people clearing up their own mess. It helps us learn lessons.

Pixie5740

If your partner had a DMP through PayPlan until very recently then the chances of him being accepted for a mortgage in the near future are slim to none.

At the moment he has joint accounts with his ex which means they are financially linked. If you have any joint accounts with him then this means you are also financially linked, by the credit reference agencies, to the ex.

I think you should continue saving and he should work towards clearing his debts and improving his credit files.

If you can afford to buy a place on your own and have him live there (not on the deeds or mortgage) then by all means do that but do not give him your savings to clear not only his debts but debts that are also in the ex's name.

emmabarth

Thanks for your replies. The only thing we have in joint names is the council tax bill, we have no joint bank accounts or utility bills, they are in my name because he moved in with me.
He has done really well to clear the debts so far, it was a LOT more and he lives very frugally now and never misses a payment but realistically it will be a couple of years before its cleared if the creditors don't accept a settlement or he gets some help.

emmabarth

Also should add that we are getting married next June. Does anybody know how that will affect things?