Mortgage advice - husband has defaults

steph2901

Hi,

I'm after a bit of advice really. I own my house with my ex-husband and understandably he wants his share now that I've re-married. We've agreed on a settlement figure for him but the problem is borrowing it.

I have a very good credit report, 5/5 on Noddle and excellent on Clearscore. My new husband on the other hand has poor credit report and about 3 defaults, one of which happened last year (he didn't know about it because it was an old account from a previous address and he noticed it when he signed up for Experian).

I can't afford to borrow in my name alone and stay in the same house. But would there be any lenders who would lend to someone with 3 defaults and existing credit card debt (think he is on a DMP for these)? Would we end up with a huge interest rate if so?

Or would we be better off moving to a cheaper area in my name alone or renting until he sorts himself out?

Thanks in advance

David_White

If he's got a default last year and is currently in a DMP this will be very difficult to place with a lender.

Has he come to an agreement directly with the people he owes money to or has he gone to a DMP company like Stepchange, Payplan etc and they arrange the payments?

Also, what kind of company did he default on last year i.e was it a credit card, mobile phone, loan?

steph2901

Thanks for your reply.

He arranged this payment plan directly with the credit card companies. The default last year was for an old bank account he no longer used but had an overdraft on it. All of these debts were before he met me and from when he was married previously.

David_White

Ok that's good.

Potentially there would be a lender available to you however you may end up with a rate around 5-6%.

steph2901

Thanks, I suppose we will need to go through a broker and see what happens. 5-6% is a lot so it will depend on what the payments will be, but at least we could stay where we are then.