Re-mortgage....will my credit negatively impact my other half?

MaudeLebowski

I live with my fianc! in a flat that he owns – bought for £105,000 with a £30,000 deposit back in September 2014. His fixed rate deal is about to come to an end and I’m looking for a wee bit of guidance/opinions.

He earns £29,000 and has an impeccable credit history – no outstanding debt other than the mortgage; a credit card that is used sporadically and paid in full.

I earn £24,000 and mine’s is a bit all over the place. I had a Credit card go into default in April 2012 – this was £1500 and I entered into an arrangement to pay. I don’t see this now on any of my credit reports now. !!!128522; Aside from that, I have 3 consecutive late payments on a Topshop card back from March – May 2014. These are the only “blips” in my report.

I currently have a Virgin card with a balance of £3800 (0% until Dec 2020) out of a £4000 limit and an MBNA card with a balance of £3000 (0% until Dec 2020) out of a £3500 limit. At the moment, I just punt £75 to each card. I also have a Credit Union loan of £9000 – I pay £450 a month and this will be paid off in May 2020.

We’re trying to establish if we’re wiser to remortgage (to replace our current deal) as a joint application or single in his name. I guess what I’m asking is, will my wonky credit drag him down?

We’ll be looking to move to a bigger property after our wedding at the end of next year; and again we’d have the question of joint or single there too.

Any info/guidance would be great!

sal_III

For the remortgage of the current property it's best to keep it in his name alone if he meets the affordability criteria. Adding you to the mortgage will require adding you on the deed (for almost all Lenders) which adds complication to the process. What is your goal for going from single to joint application?

For your future home it might be OK to make a joint application, preferably after you have cleared all your debt.

MaudeLebowski

Thanks sal_III
We weren't sure if adding me onto the mortgage would perhaps give us access to a better range of offers. But completely understand what you're saying - it does make sense to leave it as a single app.
Thanks for your help :beer:

sal_III

MaudeLebowski wrote: »

Thanks sal_III
We weren't sure if adding me onto the mortgage would perhaps give us access to a better range of offers. But completely understand what you're saying - it does make sense to leave it as a single app.
Thanks for your help :beer:

The availability of better offers is affected mainly by LTV and credit rating. Adding you to the mortgage doesn't affect the LTV and if anything damages the overall credit rating.

The only benefit of your addition would be affordability for higher level of borrowing, which by the looks of it is not required for the remortgage, but is likely to be required for your future bigger better home.