How does my poor credit rating affect my spouse

howstupid

Hi,

My user name says it all but I have had my LBM and am dealing with my problems.

I currently have 2 loans for £23k and £25k which have 7 and 6 1/2 years left to pay and £20k in credit card debts.

I earn enough money to be able to make the repayments and will be debt free at the end of the loan period.

However, my concern is that during this time I am unlikely to be able to secure any additional credit and our mortgage is due for renewal next year.

My name is not on the mortgage as the house belonged to my husband before we met. He earns £29k and our mortgage is £100k on a £200k property so he can afford the mortgage on a sole application.

I do pay half the mortage as I earn more money.

My question is, will my high level of debt affect his ability to apply for a sole mortgage. We do not have any joint loans or credit cards, only joint bank accounts.

RAS

Hi

If you have joint bank accounts, you are linked financially. Did you have these when you last re-mortgaged?

LilacPixie

As you have a joint bank account it is likley that your credit records are already linked, however, if you have not defaulted on any account nor missed any payments it is likley that it wouldn't have a major impact on him applying for credit alone.

That being said Lenders are getting more fussy and seem to have strange criteria at the moment so it really will be a case of applying and keeping fingers crossed.

Sammy_Girl

Hello,

If the mortgage is going to be just on his name, then your credit should not affect it at all. It only comes into play if you have joint accounts.

Sammy x

howstupid

Thanks

We weren't married and didn't have a joint bank account when the current mortgage was arranged.

Do you know if all my accounts would appear on my husbands credit report, or just those in joint names?

MrsTinks

Applications you make might show on his but the actual accounts and amounts I believe do not.

poppyg_2

Hi, I think you would be fine if the application for mortgage is just in your OH's name

Does your OH know the situation relating to your debt?

howstupid

He knows about the 2 loans and £12k of the £20k credit cards. I have only just been honest with myself about the total amount and when you add it up it is scary.

I know I can afford to continue paying all my debts off but i'm really worried about affecting his ability to get a mortgage because of my stupidity.

Sammy_Girl

howstupid wrote: »

He knows about the 2 loans and £12k of the £20k credit cards. I have only just been honest with myself about the total amount and when you add it up it is scary.

I know I can afford to continue paying all my debts off but i'm really worried about affecting his ability to get a mortgage because of my stupidity.

I know how you feel. OH and I bought our first house last year and I wasn't completely honest with him about the full extent of my debt. I had to come 100% clean, as I knew they would check my credit record. Because of my debts we did end up paying a slightly higher % interest. OH was great about it and still is. Our 2 year deal ends next year, so am 100% determined to clear my debts before we remortgage. Now he knows my situation, he checks on a monthly basis n how much I've paid off!! But instead of being annoyed at him checking up on me, I really appreciate it.

You will be fine

Sammy x