Joint Account

Carl2510

Good evening,

Me and my partner are hoping to have a house before end of the year, we plan on getting a joint account together for when we get a mortgage is it better to do this after we get the mortgage or before will it affect are credit score?

Or could we just open an account together and have it ready for when they start asking for details like where they want the mortgage payment to come out of etc and all utility bills. And then slowly start closing are other accounts once all direct debts are transferred over.

Thanks.

colsten

A joint account may or may not be the right thing for you. You don't need to have a joint bank account for a mortgage or to pay your bills, although you might find it easier to manage. Joint accounts do come with risks, though, as either account holder is liable for any debt on the account.


This would be worth a read:
https://www.moneyadviceservice.org.uk/en/articles/joint-accounts

DCFC79

Carl2510 wrote: »

Good evening,

Me and my partner are hoping to have a house before end of the year, we plan on getting a joint account together for when we get a mortgage is it better to do this after we get the mortgage or before will it affect are credit score?

Or could we just open an account together and have it ready for when they start asking for details like where they want the mortgage payment to come out of etc and all utility bills. And then slowly start closing are other accounts once all direct debts are transferred over.

Thanks.

It wont affect your score as lenders dont seekt, they see your history.

I dont see a benefit of getting 1 sorted before you get the mortgage sorted.

If you do get a joint account you will be linked, are you sure your partners history is the best, have you seen it yourself ?

Why not take advantage of the switch bonuses and switch the account with the DD's in, they get moved across and I believe account is closed.

Just a warning, dont take out a loan fo your partner so he can buy this and that, if you were to break up (heaven forbid) you would be liable for making the payments, various posts about this on the forums.

born_again

How are you saving for the deposit now?

I would keep your sole accounts. Then open a new Joint account.

Maybe even open a account now that you could switch over later to the joint acc for any switching bonus.

Carl2510

The deposit is already saved, we are both doing 10% for a 20% deposit.

She has zero debt no credit cards, I am the same no debt apart from the house I own which I’ll be selling. I have a credit card but it’s all paid off.

Maybe better off waiting to get the mortgage then and then think about switching everything over. It’s just then to decide where the bills come out of in the first place me or her.

Socajam

I would have joint account for bills only - both of you deposit/wire money in that account monthly.
Since as you have a house, how much deposit are you putting down?
I would advise that you do a forum search on housing deposits before actually moving forward. Are you going to have something in writing etc?
There have been some serious setbacks on couple who have put down a large deposit and a couple of years later, when things go south, they want to know how to split the proceeds.

Carl2510

The deposit isn’t coming out of the sale of my house it’s what I have now we are putting £20K each for a £40K deposit on a house around £200K

She does not own any of my house it’s in my name.

badger09

Carl2510 wrote: »

The deposit is already saved, we are both doing 10% for a 20% deposit.

She has zero debt no credit cards, I am the same no debt apart from the house I own which I’ll be selling. I have a credit card but it’s all paid off.

Maybe better off waiting to get the mortgage then and then think about switching everything over. It’s just then to decide where the bills come out of in the first place me or her.

No need to rush into a joint account yet. When you take out your joint mortgage, you will be financially linked anyway, so that would be the time to consider one if its convenient for you both.

If your partner has no debt and no credit card, she might have very little credit history. Mortgage lenders would prefer to see evidence of well managed credit, rather than none at all.

I suggests she applies for a credit card now. It doesn't have to have to have a large balance, and she should obviously pay it off in full every month.

Carl2510

She Is applying for one as we speak, I am currently about to sell my home through a new build scheme so once mine sells we will be reserving a plot, there is some already built but maybe we shall wait for one that isn’t just to get her paying some credit card payments off so they think she can do it