Will my partner moving in with me affect her credit rating?

DrWatson1

I have been with my partner for over a year, and she has a pretty good credit rating (she recently borrowed £7k at 3.9% from Sainsbury's for a new car).

I have been in a debt management plan for 6 years, and by the end of the year all the defaults on my account will have dropped off, so hopefully my credit rating will begin to improve (I can't get even a very high interest CC at the moment)

I'm a homeowner and she rents. We haven't broached the subject of moving in together, nor does she know about my debt.

However, if we moved in together, would this affect her ability to get good credit? She has a good job and could get a sizeable mortgage on her own, so I'm really just thinking ahead and weighing up all the options at the moment.

Ebe_Scrooge

In a word, no. Credit files are linked to individuals, not addresses. If, however, you are financially linked ( joint account, joint mortgage, etc. ) then yes it could affect her credit file.


As an aside - and it's really none of my business - I'd question whether it's a good idea to hide your debts from her. It might save future difficulties in the relationship if you're honest with her. But, like I said, it's none of my business, it has to be your decision.

DrWatson1

Okay, thanks for the information.

It's a fair question about disclosure of my debt. We never really talk about money, and it's not the kind of subject you can easily drop into a dinner conversation. In addition, my debts are under control and I'm in the process of offering F&F settlements on all my debts. That said, If she asked me about it, I certainly wouldn't lie.

I have a decent amount of equity in my house. Should we ever consider buying a house together, if I sold my current house my net worth would be significantly more than hers even considering clearing all my debt, so I don't see my debt as an issue.

However, I wouldn't want by credit history to compromise her ability to get the best mortgage rates.

Candyapple

Are you looking to sell your house and buy one with her so that you are both on the same mortgage together? If yes, then yes her credit history will be affected as she will be financially linked to you and vice versa.

If you are looking for her to move into your home and her stop renting then you really do need to sit down and discuss what exactly she is paying for because otherwise if you split up, she may be entitled to a share of your property. I've seen so many threads over on the marriage board and also the mortgage board about couples who have split, one was the homeowner and the other paid rent and now they had a claim to the property:

https://www.theguardian.com/money/2010/jun/20/mortgage-warning-unmarried-couples

DrWatson1

Okay, thank for the heads-up. This is just something I've started to think about given we have been together over a year, and I guess we are getting to that stage where talks about the future could crop up at any moment, and I want to be well-informed.

I suspect the best plan for us would be to buy a house where she applies for the mortgage in her name, and I put down a sizeable amount of capital for the deposit, and we both contribute equally towards the outgoings. I suspect therefore that an agreement over who-owns-what would be more in her interests than mine, but ultimately something that would be fair to both of us.

[Deleted User]

DrWatson1 wrote: »

I suspect the best plan for us would be to buy a house where she applies for the mortgage in her name, and I put down a sizeable amount of capital for the deposit, and we both contribute equally towards the outgoings.

I believe you'll struggle to get a lender to agree to that scenario.

You're going to need a broker for this one.

DrWatson1

I suspect any potential house-buying venture will be at least 2 years away. In that time, my credit report may well look a lot better and so it may not be an issue anyway.

My main concern was whether her moving in with me would affect her ability to obtain credit at the very best rates. As long as it doesn't then it's not a problem.