Mortgage and Debt help

thepod

Hi All,

I would like your opinion or help on a matter relating to debt and a future mortgage application. to cut a long story short I have debt which I can write off in 1 year.
Loan:5800
Car finance: 3150
Credit Card 1: 3500 (interest free till may 2017)
Credit card 2: 3500 (interest free till jan 2017)


I am pretty terrible with money and I often spend too much but my wife has supported me and is helping me to pay the debt off.

I have two questions:

1) My car is currently worth about £5000 and we are thinking of selling the car, paying off any debt and then buying a car for £1500 to last the next couple of years (I need a car to travel to and from work) I want to know what you think of this idea? The car is a VW golf and is only 5 years old. I can easily manage the monthly payments of £154 and have 22 months left to pay. I have reservations on selling the car as it is needed for my work and buying a used car for £1500 worries me. Also the value of the car should be retained.

2) Because I am poor with money I have asked my wife to take full control of my finances. I am basically going to close my bank account and have an 'allowance' from her each month. My concern is that we are looking to buy a house in two years. My name will not go on to her account. With this situation will getting a mortgage be difficult in both our names if I have no bank account? She will have a very healthy bank balance and savings for the both of us.

If she applied for a single mortgage would they take my wage into account?
Could we apply for a joint name mortgage even if I didn't have a bank account?
Could she get a large mortgage if she used my wage but my name was not on her account?

Any help would be greatly appreciated!:j:j

Thrugelmir

I would suggest that you separate the issues. Firstly deal with your personal finances. Whatever you feel is necessary do it. Once the debt is cleared then return to a normal state of affairs.

Acting in an abnormal manner merely raises too many questions and suspicions. Not the ideal preparation prior to applying for a mortgage either.

thepod

Do you think I should keep my bank account open? Will it affect our credit scores? I believe stability is the best thing so I should keep my bank account and use that as my allowance account.

chelseablue

We have the same situation. My partner has his own bank account and when he gets paid he transfers it all over to me.


Then when he needs spending money I just transfer some over to his bank account.


We were approved for our mortgage last year and the lender saw 3 months worth of his bank statements and didn't ask any questions

thepod

Thank you for your reply.

Did your husband then keep his bank account open and transfer most money to you?

I was thinking of getting paid into my wife's account then have her transfer me and allowance however this might not be healthy for my bank account and statments as there won't be a great deal of money going into my account.

chelseablue

Yes he kept his bank account and his salary still gets paid into it, he then transfers it over to me

nkkingston

Could you not open a joint account, and you cut up your card? Then your name is on there etc, but she's still controlling the money.

ETA: also, if something happened that prevented her accessing the account (got stuck abroad, car accident, etc) at a vital time, it would be easier for you to do so in an emergency.