Debts and getting a mortgage

MEHH27

I just want some advice on what my best option would be.
An ex partner of mine took out a number of debts in my name. I've had some removed and in the process of disputing some others however some of the debt is going to still be in my name. Currently to CCJs in my name, for one of them I have been taken off the loan so assume this will be removed but one may stick.

I'm looking to get a mortgage in the next few years with my fiancé. He is a British citizen but hasn't been in the UK for long so we are currently building him credit and he has a good credit score. Things may change in the next couple of years but as it stands there is no way on his wage alone he will be approved for a mortgage especially the size and area of the house we would need, therefore I need to be on the mortgage.

I've had some advice which I think it bad advice so I just want other thoughts on it.

I've been told wait 6 years until the debts drop off my credit file and don't pay anything back at all.
I haven't added the debt up since some of the loans have been removed but its between 20-30k.

I'm just wondering if this would be the best way to do it?

I thought it would be best to pay off all the debt but obviously that will be costly. My other thoughts were an IVA but as far as I'm aware that would also have a negative effect.

Any advice please 

AdrianC

Your ex could not have just taken out credit "in your name" - you must have been a joint applicant, at the very least.

Right now, your credit history shows a track record of you borrowing money and not paying it back. You still owe £20-30k. So, no, it wouldn't be a great surprise that nobody is keen to lend you several times that much...

Yes, paying off money that you've borrowed can "be costly". And, yes, coming to an agreement with your creditors to not pay them back (which is what an IVA is) can make lenders unwilling to trust you further with their money.

I'm sorry if that's very bald, and if it sounds harsh... But it sounds as if you're a bit in denial about your current situation, and sugar-coating won't help anything.

You would be best off shelving the thought of a mortgage for the moment, and addressing your current debts first. Then, once you are no longer in debt, rebuild your credit record. THEN you can start to think about borrowing large amounts of money again...

The DFW board is the best place for you to start. https://forums.moneysavingexpert.com/categories/debt-free-wannabe
Good luck!

Angela_D_3

Denby manage to plan.  Pay the minimum required, save up a lump sum in your partners account if you trust them (parent might be safer you’ve already been burnt).  Offer creditors £10,000 to clear the £30,000 

[Deleted User]

MEHH27 said:

I just want some advice on what my best option would be.
An ex partner of mine took out a number of debts in my name. I've had some removed and in the process of disputing some others however some of the debt is going to still be in my name. Currently to CCJs in my name, for one of them I have been taken off the loan so assume this will be removed but one may stick.

I'm looking to get a mortgage in the next few years with my fiancé. He is a British citizen but hasn't been in the UK for long so we are currently building him credit and he has a good credit score. Things may change in the next couple of years but as it stands there is no way on his wage alone he will be approved for a mortgage especially the size and area of the house we would need, therefore I need to be on the mortgage.

I've had some advice which I think it bad advice so I just want other thoughts on it.

I've been told wait 6 years until the debts drop off my credit file and don't pay anything back at all.
I haven't added the debt up since some of the loans have been removed but its between 20-30k.

I'm just wondering if this would be the best way to do it?

I thought it would be best to pay off all the debt but obviously that will be costly. My other thoughts were an IVA but as far as I'm aware that would also have a negative effect.

Any advice please 

What counts as a good credit score and with which institution? One that actually lends money? 

Are you home owner just now? That’s who IVA were set up to help, home owners with large amounts of debt. If you aren’t a home owner or even if you are then think long and hard about an IVA as it is a form of insolvency and a very ridged way of dealing with your debts. A debt management plan (DMP) is much more flexible and would give you the option of offering full and final settlements for a fraction of the outstanding debt in the future. Burying your head in the sand is one option but remember that creditors have up to 6 years after you last acknowledged the debt to take court action. You could reach the 5.5 year mark and get a CCJ. 

Be aware that lenders keep their own records going back further than 6 years. If you default and fail to repay what you borrowed then some won’t give you a mortgage even if the debt no longer shows on your credit files. The RBS banking group are one such lender who are known for this. 

That’s not to say that those with debts will never get a mortgage in the future. They can but their options might be slightly more limited. 

MEHH27

AdrianC said:

Your ex could not have just taken out credit "in your name" - you must have been a joint applicant, at the very least.

Right now, your credit history shows a track record of you borrowing money and not paying it back. You still owe £20-30k. So, no, it wouldn't be a great surprise that nobody is keen to lend you several times that much...

Yes, paying off money that you've borrowed can "be costly". And, yes, coming to an agreement with your creditors to not pay them back (which is what an IVA is) can make lenders unwilling to trust you further with their money.

I'm sorry if that's very bald, and if it sounds harsh... But it sounds as if you're a bit in denial about your current situation, and sugar-coating won't help anything.

You would be best off shelving the thought of a mortgage for the moment, and addressing your current debts first. Then, once you are no longer in debt, rebuild your credit record. THEN you can start to think about borrowing large amounts of money again...

The DFW board is the best place for you to start. https://forums.moneysavingexpert.com/categories/debt-free-wannabe
Good luck!

I was a guarantor for the biggest loan which I have now been removed from so just awaiting the CCJ to be removed from my score.

He took out some payday loans and credit cards using my information and the loans paid into our joint account, I'm hopeful at getting these removed as they didn't at any point confirm with me by phone or anything that it was me taking out these.

When you put it like that about the IVA, I see why that might not be the best option. But I agree, I'm definitely trying to resolve the debt before we get a mortgage i just wasn't sure whether paying it off or getting the IVA would he the best option financially whilst also not damaging my credit further.

TBagpuss

If he took out loans in your name without your consent then you may need to report it as fraud in order to get it off your record.