Partners DMP

Financialwizard · 24 April 2018 at 4:04PM

Hi,

I have a couple of questions. I work in finance but it is mainly in protection so not something I have had to deal with at work.

My partner has a DMP that at this rate will be running for 57 years.

We are getting married next year (for legal reasons) and I am sure that I am right in thinking that unless we open a joint account we will not be linked financially with regard to credit reports, etc am I right?

In a few years we may be in a position to repay the DMP in full. If we do that do I really have to wait 6 years until it drops off his credit report before becoming financially linked? (working in finance)

Also at that time we may be in a position to also buy a property to let which we would like to put in joint names (or maybe just his dependent on circumstance at the time) would this cause issue with his newly paid off DMP?

That is all the questions I think I have! Thank you in advance.

sourcrates · 24 April 2018 at 4:39PM

Hi,

Correct on the first point.

Defauted debts stay on file for 6 years, so depends on the default date.

After all his debts are gone from his file, it will be like the DMP did not happen.

Financialwizard · 24 April 2018 at 4:49PM

So, just to clarify it is 6 years from when it originally defaulted as opposed to satisfied date?

Might be in a position to buy property outright so that would be helpful

National_Debtline · 24 April 2018 at 5:33PM

Hi there,

Yes, a debt will show for 6 years from the date it defaulted and the date of judgement, if the creditor gets a CCJ. Please be aware that if you pay a CCJ within 1 month of it being entered, then it will not show on your credit file.

And you are also correct in your thinking that unless you have some kind joint finance (that could be a bank account, loan, or mortgage - for example) then you will not create a financial association / link between your credit files.

When it comes to his debt options and improving his credit file, you may need to elaborate further. If you can settle the DMP within the next few years, then he can start to improve his rating after that. This will likely take time to do and he will need to do things like use very small bits of credit and clear them in full the following month to show he can use credit responsibly. You may want to speak to a mortgage broker, when you get to that stage for more guidance about his credit file and what mortgages may be available. However, until then, if you want to post more details about the specifics of your partners debts (how much he owes, how much he is paying off etc) then other posters may be able to give more tips to help.

Good luck,

Laura
@natdebtline

Financialwizard · 25 April 2018 at 10:00AM

The amount of his debt and how much he is paying I am not overly worried about currently to be honest. Mortgage wise I am also not worried because the intention is to repay the companies that he owes in full in a few years.

Intention is to then get consent to let on my property (just in my name) if I am still in fixed rate period, or re-mortgage on a BTL/LTB just in my name and onwards purchase for cash only in joint names. I am aware that if we did that currently the taxation for SDLT would be higher. My concern is more if there would be any repercussions is say we paid off the companies in the DMP in May and bought in June. My rational mind is saying don't be ridiculous but I wanted to check.

Partners DMP

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