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How does my mortgage impact my credit

HousingA
HousingA Posts: 38 Forumite
Sixth Anniversary 10 Posts
in Mortgages & endowments
I have a house with my brother. The mortgage and deed is under both our names 

I no longer life with my brother and moved back in with my parents. 

I am no longer paying towards a mortgage anymore 

If I apply for a personal loan , will they take into account that I have a mortgage and assume I am paying towards that or will my credit and potential borrowing increase because I don't pay towards a mortgage

Comments

  • MWT
    MWT Posts: 10,551 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    edited 29 October 2021 at 4:01PM
    You remain liable to pay the entire mortgage should your brother fail to do so, so yes, it will be taken into consideration.
    It would be a good idea to sort out the house ownership and the mortgage sooner rather than later as it will continue to impact on your borrowing ability, and should your brother fail to pay the lender will come to you for full payment...
  • FashionHeart
    FashionHeart Posts: 150 Forumite
    Sixth Anniversary 100 Posts Name Dropper
    HousingA said:
    I have a house with my brother. The mortgage and deed is under both our names 

    I no longer life with my brother and moved back in with my parents. 

    I am no longer paying towards a mortgage anymore 

    If I apply for a personal loan , will they take into account that I have a mortgage and assume I am paying towards that or will my credit and potential borrowing increase because I don't pay towards a mortgage

    It will impact greatly on your credit report and you are still liable for the current mortgage.
    As advised, it is recommended that you sort this promptly to prevent any financial complications in the future as lenders will see it as a risk should you wish to apply for any financial commitments.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 29 October 2021 at 2:56PM
    HousingA said:

    I am no longer paying towards a mortgage anymore 



    Legally you are jointly and severally liable for the mortgage debt. Hence why it will be taken into consideration in any affordability calculations for further credit. 
  • london21
    london21 Posts: 2,207 Forumite
    1,000 Posts Fourth Anniversary Name Dropper
    If you are no lomger invested in the property why not take your name out/sort out ownership etc.
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