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Original poster

Credit scores and mortgage applications - advice needed please.

27 replies

ihategeorgeosborne · 22/01/2014 14:32

Dh and I are applying for a mortgage. Dh has an excellent credit rating, up in the high 900s. However, I have a fair credit rating, due to the fact that I personally don't have any credit. Dh is the only earner as I am a SAHM at the moment, so my income is zero. Does anyone know if my credit rating will affect whether we get the mortgage or not, based on the fact that he will be the only income provider on the application anyway?

OP posts:

Juno77 · 22/01/2014 14:35

You are unlikely to get approved, if you are on it.

If his is the only income, then simply don't put your name on the mortgage application.

Original poster

ihategeorgeosborne · 22/01/2014 14:40

I thought about that Juno, but I spoke with them today and I explained all this and they said that it would look more suspicious if dh is a lone applicant on the mortgage, even though he is married and living with his wife. They said they thought that it would look like I was hiding something, i.e. unpaid debts, bad financial management, etc.

OP posts:

Juno77 · 22/01/2014 14:45

Well.. you are!

It might not be 'bad' financial management as such, but you have no credit history, which is what you are trying to hide.

The advice you have been given is strange. When you apply for a mortgage, the mortgage lender makes a decision based on your application. They don't ask who you are planning on living with.

Plenty of married people apply for mortgages as single applicants, for various reasons.

orangepudding · 22/01/2014 14:49

My dh applied in just his name for similar reasons and got a mortgage from Nationwide. They didnt find it a problem.

Original poster

ihategeorgeosborne · 22/01/2014 14:50

I agree Juno, I would have thought that it wouldn't matter if just dh was on the mortgage, as he will be the only one paying it for now. The mortgage adviser said that she didn't think there would be a problem with me not having a great credit history as they would see that dh did. She went on to say that if I wasn't on the mortgage they would want to know why he was married and living with me and I wasn't on the mortgage. I just worry that being on the mortgage will reduce our chances, particularly since we are not taking my income into account!

OP posts:

Juno77 · 22/01/2014 14:59

If you have no credit history, and are applying for a mortgage, you are very likely to be rejected. You are high risk - the lender has no reason to think you will keep up your payments - no evidence to suggest you will.

No mortgage lender will ask why your DH is applying solely. A married person is perfectly entitled to buy a house in their own name.

If you are rejected, it will go against your DH and he may then be rejected as a sole applicant in future.

Original poster

ihategeorgeosborne · 22/01/2014 15:00

Thanks Juno and thanks orange. We are meeting with her on Saturday to discuss.

OP posts:

ihatethecold · 22/01/2014 15:02

Do you have a bank account?
Any direct debits from that account?
Store/ catalogue accounts?
This all adds to your credit history.

Juno77 · 22/01/2014 15:03

Presumably she has seen her credit history, since she knows it is a low score?

And Direct Debits don't add to your credit history. Not unless they pay towards a debt.

LittleBearPad · 22/01/2014 15:04

Regardless of the mortgage I would suggest you get yourself a credit card in your own name, you can use it for bits and bobs and pay it off each month. Thus way you'll earn your own credit score which could be helpful if anything were to happen to your husband.

Juno77 · 22/01/2014 15:07

Agree with that advice from littlebear

Original poster

ihategeorgeosborne · 22/01/2014 16:09

cold, I do have a bank account, both joint with dh and on my own. I have banked with them for over 20 years. No store cards and I don't like debt!. Juno, I know my credit score as I checked with experian. Our potential mortgage providers do not know yet. Agree LittleBear, I should get myself a credit card. Thanks all for your responses

OP posts:

Original poster

ihategeorgeosborne · 22/01/2014 16:34

Forgot to add, I did pay off all my student loans and that doesn't appear on my credit records. Is that something different, as I would have thought that that shows that I am good at paying off my debts?

OP posts:

Juno77 · 22/01/2014 17:06

Ah, student loans don't appear on credit scores either.

It's funny what does and what doesn't. Rent payments don't, which is changing but has adversely affected so many people in the past. They can easily make their monthly payments, and have done for years, but it isn't taken into account for a mortgage.

Original poster

ihategeorgeosborne · 22/01/2014 18:15

Yes Juno, I've been paying rent for years, never missed a payment. It's a shame that isn't taken into account! Anyway, I spoke with the mortgage adviser again this afternoon and explained about my 'fair' credit rating. She said that she really doesn't think it will matter, as I don't have a bad rating, just no history. She thinks that the fact that Dh has such a good one will be fine. She has assured me that she will speak to the underwriters tomorrow and see what they have to say and that if it could be a problem she will let me know. Fingers crossed

OP posts:

pussolini · 27/01/2014 07:50

I recently applied for a mortgage in my name only, without DH and my mortgage advisor said they would have a quick look at DH's anyway.

Sheldonswhiteboard · 27/01/2014 07:55

That seems odd puss. Did your DH give consent for them to check his credit history? I thought a lender could only look at the parties applying for the mortgage?

aliciagardner · 27/01/2014 07:56

Have applied for mortgage and remortgage with me working ft and DH sahd, never been an issue.

aliciagardner · 27/01/2014 07:57

I should add, both of us were named on the application, both times.

Bohemond · 27/01/2014 08:01

Does the application not ask if the applicant has dependents ie children and a sahw?? It would be weird if they didn't as dependents reduce disposable income and ability to repay the mortgage.

speak2me · 27/01/2014 08:21

Fwiw I'm a SAHM, DH has the only income. We recently got approved for a mortgage in our new home, in both our names. I am in a similar position, no credit or store cards. I have Child benefit coming into my personal account and mortgage advisor said that was counted as my income. HTH.

Preciousbane · 27/01/2014 08:28

This reply has been deleted

Message withdrawn at poster's request.

Preciousbane · 27/01/2014 08:29

This reply has been deleted

Message withdrawn at poster's request.

pussolini · 27/01/2014 11:16

Dunno sheldonswhiteboard Apparently they can take a peek at anyone you are associated with. That's what my mortgage adviser said anyway.

Mine was only 'fair' and I got a mortgage no problem.

I second getting a credit card because one of the factors is available credit.

If you call Experian they're quite good and advising you on how to better your score. For example, I paid off and cancelled all my credit cards which apparently was quite the wrong thing to do

Original poster

ihategeorgeosborne · 27/01/2014 17:48

Hi everyone, Thanks for all your replies. We applied for a joint mortgage on Saturday. Have been nervous all weekend. Dh rang me from work to say the mortgage had been approved. Underwriters just want to see last 3 months payslips and a letter from dh's employer confirming salary and to do a valuation on the house we are buying. Woo hoo, we have our first mortgage!!!

OP posts:

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