After any advice on mortgage with missed payment on credit file.

hannahroberts1985

Hi,

So me and my partner have been saving for a while and are now in a position where we have a deposit together....the problem is he has a £44000 mortgage with his step dad from years ago. After reviewing his credit rating today it has red 1's next to all dates from the lasts year on the mortgage. I don't know what the 1's mean but am assuming his dad hasn't been paying on time....or at all. He is going to go visit his dad and see what the situation is and try and get his name taken of the mortgage completely. Any advice on how long this will effect his credit score would be greatly appreciated. Feeling very deflated after years of saving. Thanks Hannah

Thrugelmir

Mortgage arrears will be problematic. Get it sorted asap. Though if his stepdad is in financial difficulty remortgaging to a single name will face the same if not greater issues.

hannahroberts1985

Yeah that's what I was worried about. I'm so frustrated how can someone dad do this to them and completely screw up their chances! Anyone have any suggestions on what our next actions should be? I've made my partner contact his dad and arrange visit I've suggested he booked an appointment with the mortgage company to discuss the situation but not sure if that's the right way to go about it?

kingstreet

If it's a string of 111111111111s like that it means a payment was missed several months ago and has not yet been made up.

I can't say what impact that will have or how long the rehabilitation period will be as I have no knowledge of the rest of your case.

Take credit files to an independent broker and have them timescale the future for you.

amnblog

Don't forget that if your partner does not come off Dad's mortgage before you purchase, your stamp duty on the new purchase will be 3% higher.

[£3,000 per £100,000 of price]

hannahroberts1985

Thanks for the advice guys I really appreciate it. We're thinking I may have to go for the mortgage alone.....will it effect me that I have joint accounts and links to the bad records of my partner? Also we will need a bigger deposit if it's just me....if my parter was to get a 0%money transfer card to raise an extra chunk of deposit would that go agains us. He's transfer the money over and write a cover letter saying it was a gift to me? Dodge territory I know but the repayments of the mortgage and card would be a lot less than we are paying on rent and mortgage savings anyway so could manage it comfortably.

System

If you have joint bank accounts then your credit histories will be linked

Unfortunately as the mortgage is in joint name between your partner and dad it is seen as both their responsibility that the mortgage is being paid on time, so will be tough to get it taken off his history

Bring the mortgage up to date by paying this missed payment and then go see a mortgage advisor to see what the impact will be.

If it's bad enough that you can't buy a property then might be an idea to close the joint accounts and disassociate your credit files by sending a letter to all 3 credit reference agencies with a request to unlink the accounts

csgohan4

Another reason why Family and money shouldn't mix.

Only do it if your happy to take them to court.