Mortgage and Partner's Credit Rating

Xannaoh

Can someone please advise if my husband’s credit rating will be negatively affected if he adds me to his mortgage? We have separate finances and he’s got a perfect credit score. I had a voluntary house repossession in the past which will continue to affect my credit rating for another 3 years. I want to pay a lump sum towards the mortgage and be added to the title deed (we haven’t figured out the details yet, but provisionally he’ll own ¾ and I will own ¼ of the house). Will we have to add my name to the mortgage as well and how will it affect his credit rating? 

ACG

Assuming you are not already, you will become financially associated. 
You will have an effect on his credit report yes. 

You will also need to apply to be added to the mortgage, the lender may not accept you depending on the details. 

kingstreet

You cannot be an owner without also being a borrower. If you contribute towards the deposit and aren't party to the ownership and mortgage and intend to reside in the property, many lenders won't lend. Many also won't do a sole mortgage where the applicant is married. Be careful with this if you aren't going to use a decent broker.

Brie

I was under the assumption that one person cannot affect another's credit record.  Yes you will be listed as living at the same address but presumably you are already so that's done.  And there's no such thing as financially associated.  

I'm assuming when you say your repossession will be showing on your credit record for another 3 years it happened about 3 years back.  If that's the only issue of note and everything has been tidy since then I think there should be few issues.  If you also have an income then what you are doing is making the affordability of the mortgage less of a risk to the bank.  

And you can state that he owns X% and you the balance but in the case of a split it might not be looked at in that way.  It may be more pertinent should one of you die and beneficiaries will inherit your/his portion.  If this is the case then consider what happens if the heirs decide they want to sell their portion.  Solicitors know how to deal with this so it's not a problem for the surviving spouse.  (sorry to get so grim.....)

gizmo111

Brie said:

I was under the assumption that one person cannot affect another's credit record.  Yes you will be listed as living at the same address but presumably you are already so that's done.  And there's no such thing as financially associated.  

This is incorrect - joint accounts create a financial association and adverse credit will impact on the associated persons ability to get finance.
Financial Association | What To Know About Shared Finances | Experian

Xannaoh

kingstreet said:

You cannot be an owner without also being a borrower. If you contribute towards the deposit and aren't party to the ownership and mortgage and intend to reside in the property, many lenders won't lend. Many also won't do a sole mortgage where the applicant is married. Be careful with this if you aren't going to use a decent broker.

He's already got a mortgage in his sole name and we won't be borrowing any more money from the bank. I want to pay off a part of his existing mortgage and in return want to be added to the title deed :-)

MWT

Xannaoh said:

kingstreet said:

You cannot be an owner without also being a borrower. If you contribute towards the deposit and aren't party to the ownership and mortgage and intend to reside in the property, many lenders won't lend. Many also won't do a sole mortgage where the applicant is married. Be careful with this if you aren't going to use a decent broker.

He's already got a mortgage in his sole name and we won't be borrowing any more money from the bank. I want to pay off a part of his existing mortgage and in return want to be added to the title deed :-)

As ACG & kingstreet already stated, you are going to have to be added to the mortgage as well, not just the title deed.

Your financial history will have an impact on his credit report and the lender will have to decide if they are willing to add you to the mortgage.

There isn't an option that just has you giving him money to pay down the mortgage and getting yourself added to the deed...