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separation and mortgage stress

(5 Posts)
ragdollymama Mon 01-Aug-16 21:53:03

Here's the background to my separation with my husband:

Since last posting my cheatin husband has moved out into a rented house. He's agreed to pay maintenance towards bills/ child-related costs though obviously this is considerably less than now as he's got to cover his rent, bills etc. I've gone through all my finances and realised I can't break even unless I re-mortgage to consolidate 2 loans (which annoyingly I took out to prop up his excessive spending) and increase my hours (which I can do as on 30hour pw contract at moment). Then realise I really have to get a move on re-mortgaging as our discount rate ends end of August and mortgage goes up considerably to SVR.

So I found a mortgage with no tie in so when we're ready can sell up and move, split proceeds etc. I applied jointly as house deeds in joint name with husbands agreement. But it was DECLINED due to poor credit rating. I couldn't believe it - I've never missed a payment on anything. Did Experion on both of us - my rating is perfect but husband has - without my knowledge - racked up loads of credit within the last 6 months which he's then failed to pay back either on time or in two cases at all - his credit score is abysmal.

I challenged husband and he just shrugged and said he didn't think it was right, they've made a mistake. I just don't believe a word he tells me anymore. I could remortgage in my sole name but mortgage adviser said I would have to have him removed from title deeds. I don't think he'll agree.

I've told him to sort out his credit score if as he says its wrong, but I don't know how quickly his rating might be improved if he does manage this/ or he pays the debts having the biggest impact.

I can't afford the increased mortgage from Sept alongside loans so am ridiculously stressed about what to do.

Any advice please?
Thank you x

ragdollymama Mon 01-Aug-16 21:56:39

Does anyone know if mortgage co would take account of maintenance in income if not documented in a separation agreement (haven't gone the legal route yet)? Thanks

HollyBollyBooBoo Mon 01-Aug-16 21:59:18

Crikey, nightmare situation that I can completely identify with - was in a very similar situation myself.

Your H sounds like he's in complete denial, credit agencies can get things wrong but I'd doubt that many on the same persons account! I'm struggling to see how he can 'sort it' even if he does pay the money back that history is part of his credit score now for all to see so he will be a risk to potential lenders.

I'm finding it hard to give you good advise. If your H won't come off the deeds then you're mortgage advisor will have to work a bit harder to find a secondary lender (as opposed to high street) who take on riskier clients. However the deal won't be as good and repayments will be higher.

Really hope it works out for you.

HollyBollyBooBoo Mon 01-Aug-16 22:01:16

Two mortgage companies did with me but I could provide bank statements going back 2 years to show ex had paid. They were a bit funny about it and said they need it in a court order. Frankly they need to get with the times because if a couple agree an amount and there is no animosity why would you get a court order? All a bit bizarre.

ragdollymama Mon 01-Aug-16 22:12:13

Thanks HollyB. Another option is to ask our current lender for a 'new deal' but their rates are rubbish with a 3 year early redemption penalty. And doesn't solve my loan consolidation problem - I'll prob have to get a long term secured loan.

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