Is my husband a financial associate?

slowprogress

Is my husband a financial associate of mine?  I am applying for a mortgage imminently, i am debt free and have been working a second job for a few months so I can get a mortgage.  My husband has debts but he services them and has no adverse reports on his credit file.  He isnt applying to buy the house, his income is relatively low and I will be the one who is solely responsible for the mortgage, as I am for the household finances anyway.

We do not have any joint credit but he is a cardholder on one of my basic bank accounts which we use for household direct debits.  Its just a standard visa debit account and doesnt have overdraft facility etc.

I thought it best to ask before applying for the mortgage as we can close that account if needs be.

Thank you

MovingForwards

How about gas, electric, internet etc accounts, are any of those joint or are they just in your name?

If your husband had debt, but no adverse history, why isn't it a joint mortgage application?

K_S

@slowprogress You're probably associated due to the joint bank account but it's easy enough to check by getting one of your credit reports, it should show people financially associated to you.

With respect to the mortgage application, as long as you're applying with a lender that is ok with one half of a married couple applying in their sole name, you should be fine subject to other associated criteria if any (reason for leaving out one spouse, deposit arrangements, etc.). Whether you're financially associated or not is not particularly relevant to this criteria.

slowprogress said:

Is my husband a financial associate of mine?  I am applying for a mortgage imminently, i am debt free and have been working a second job for a few months so I can get a mortgage.  My husband has debts but he services them and has no adverse reports on his credit file.  He isnt applying to buy the house, his income is relatively low and I will be the one who is solely responsible for the mortgage, as I am for the household finances anyway.

We do not have any joint credit but he is a cardholder on one of my basic bank accounts which we use for household direct debits.  Its just a standard visa debit account and doesnt have overdraft facility etc.

I thought it best to ask before applying for the mortgage as we can close that account if needs be.

Thank you

lisyloo

One way to answer the question is to check you credit reports and check the financial association section.

slowprogress

I've checked and on one of the agenceis he is listed as an associate:(, thank you i didn't even realise that was there.

MovingForwards said:

How about gas, electric, internet etc accounts, are any of those joint or are they just in your name?

If your husband had debt, but no adverse history, why isn't it a joint mortgage application?

His income is low, he services his debts and has a small amount left for his independent income, he has some health issues which prevent him working more hours, I took over the finances many years ago as he saw the money in the bank and thought it was a challenge to spend it (impulse control issues). Stupidly i thought that him being a card holder for the account we use for direct debits would be a good thing but unfortunately i've just checked and it means we are financial associates. He isn't listed on any accounts theyre all in my name only apart from council tax, it's just easier as i'm the one who deals with everything financial.

lisyloo

It sounds like he is.
if he has debts but is servicing them then I don’t see why that should be an issue.
of course it’s ultimately up to the lender, but having debts isn’t necessarily an issue (it’s normal).
not paying debts or having “too much” relative to income could be issues but if he’s got a good history of paying them on time then that is in his favour.

slowprogress

Thank you, I may just go ahead with the application and see how I get on, although the interest rates are making me wonder if I should hold fire for a year to see if things level out, i've worked it out and i can afford payments on 6% interest but it would leave very little month to month for emergencies if there are any. I do have sinking funds set up though for the usual expenses and a small emergency fund (3k).

MWT

slowprogress said:

Thank you, I may just go ahead with the application and see how I get on, although the interest rates are making me wonder if I should hold fire for a year to see if things level out, i've worked it out and i can afford payments on 6% interest but it would leave very little month to month for emergencies if there are any. I do have sinking funds set up though for the usual expenses and a small emergency fund (3k).

It is easy to worry about things the lender is not going to find a problem (a spouse with low income and well managed debts) and accidentally create a problem the lender will worry about (leaving a spouse who will reside in the property off the mortgage without explanation)...

Perhaps worth talking to a broker who can help you to safely navigate any pitfalls you may be accidentally creating...