Joint Account dented credit score

lewishardwick

Hi all,

Early this year my Noddle credit score was 480ish. My partner and I started to process of buying a home together. We opened a joint account for the mortgage and bills etc.

Unfortunately my partner lost his job (amicable resignation agreed, rather than dismissal) so we had to pull out of the purchase.

I am trying to get a place under just my name so we still have a roof over our heads, but on my last check my credit score was now around 420. As a result our original lender now wants a 10% deposit, not the 5% we had planned.

It's possible the credit check by the mortgage lender didn't help but I'm concerned that if I change lender they may say the same thing.

Is it worthwhile closing the join account? Or will that knock it further? I also have a credit card with nothing on it, should I close this too? I have no intention of using it...

Thanks!

[Deleted User]

Ignore the score. No one is seeing it except you. Any change in your credit file will make it move, whether warranted or not.

A new savings account won't change a mortgage offer.

Start using your credit card. It's the best way to build a good credit history - use regularly and clear in full each month.

National_Debtline

Does your partner have any bad credit/ missed payments following his resignation? If he did and you have the joint account this could be having a negative impact on your score/ rating.

I can't see why opening a joint account would be the culprit of the problem here. It is difficult to say for certain what the real issue is because all banks have their own assessment/ formula for credit. However, from your OP you may find it harder this time round because the mortgage lender can now only assess affordability on one income (not two), and that could also be why they want a bigger deposit. Good luck,


Laura
@natdebtline