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Original poster

joint mortgage - one poor and one excellent

76 replies

BlueFrenchHorn · 03/04/2014 18:29

Dh and I wanted to get a mortgage to buy a bigger house.

We had an offer on our flat, and will make 90k profit.

Both of us earn decent salaries, dh is higher.

We've just found out that dh's credit score is 665 (poor) and mine is excellent (999).

Is there anyway we could get a mortgage?

If not how can we improve his score and how long will this take?

We're so incredibly gutted.

OP posts:
ishesingle · 03/04/2014 19:19

The score itself is meaningless. What does his report say? Defaults? CCJ's? Late payments? Lack of credit or high amount of credit?

Original poster
BlueFrenchHorn · 03/04/2014 21:49

No CCDs, lots of late payments and high amount of credit.

Essentially he has a credit card with a £6k limit, he is at £5600. About 3 months ago he got a letter saying they were going to call the bailiffs because he missed something like 3 months payments.

He since got in touch with them and is paying it off, but the issue is the credit card.

A mortgage broker said it'll take at least 3 years to get his credit score up again.

I feel crushed.

Is there any hope at all?

OP posts:
Original poster
BlueFrenchHorn · 03/04/2014 21:49

Sorry CCJs.

OP posts:
mrsdoubtfiresspecs · 03/04/2014 21:54

Following and bumping

Original poster
BlueFrenchHorn · 03/04/2014 22:01

I can't believe this has happened. We put the flat on the market and accepted an offer because we saw a mortgage advisor an he assured us with our cash deposit and salaries we'd have no issues getting approved a mortgage.

Then we saw another one to to get the AIP and then this has happened - dhs credit score has come back as poor.(652). On the experience scale it was in the middle of the poor segment.

I really thought my excellent score would help, but apparently it makes no difference.

Really appreciate any help with this.

OP posts:
AndIFeedEmGunpowder · 03/04/2014 22:21

Don't despair! You can improve credit scores quite quickly if you have some funds. (I know! easier said than done)

If he can settle the balance of the credit card (I.e pay it off completely and close the account) this will give his score a massive hike. Although if this will leave him with no credit cards it may be better to pay the existing balance and keep the account open, spending just a small amount on the card each month and then paying off the entire balance monthly.

Other things to do are to only ever use 20% of available credit, including overdraft, (has a big affect on Experian score) ensure all credit accounts are in the correct address and that he is on the electoral roll, although the electoral roll/address stuff has more bearing on Equifax than Experian.

Make sure you dont take out cash advances on credit cards as this makes you look desperate and don't apply for any credit until you apply for the mortgage (get broker to do soft/identity searches for potential mortgages. Ensure everything is paid on time religiously from now on.

I have known people turn their score from poor to excellent in 3 or 4 months by following these steps.

Know it's tricky to find the money, could he borrow short term from family? Could you use £6K of your flat proceeds?

Sorry for mammoth post and if this is all obvious. Smile

Mum2Fergus · 03/04/2014 22:25

Was it definitely the credit score that got you declined? How did you score on the affordability front?

Original poster
BlueFrenchHorn · 03/04/2014 22:45

andifeed thank you for your post, really appreciate it.

We have two options - we could borrow the £5600 off my mum and pay her back immediately as soon as we sell the flat. The other option is we could sell the flat and the use £5600 of the £95k in cash to pay off the credit card.

My big worry is what if we do that and then in a few months time we still don't get approved for a mortgage?

Then were in the position of either owing £5600 to my mum, who will only lend t us if we can pay back ASAP, or in the position of being off the property ladder, renting with £89k in the bank, slowing being eaten away with no property to appreciate and no way of buying again.

Is there anyway we could find out if getting rid of the credit card will make a difference that quickly? Who would we need to speak with?

Everyone, it really appreciate your help on this.

OP posts:
Original poster
BlueFrenchHorn · 03/04/2014 22:48

mum the mortgage broker I spoke with said not even a lender like Kensignton would consider us with a credit score as low as 652 (not 665 as stated in my OP).

He said the debt was too high and he was late every month with so,e missed missed entirely, and there was essentially no hope.

He suggested the four of us move back into our 1 bedroom flat, give up the rested house we're in at the moment, and spend the next three years improving dhs score.

Hi words were "it's a hopeless situation I'm afraid".

OP posts:
TypicaLibra · 03/04/2014 22:51

What is he like with money generally? I mean he earns more than you and yet he has this £5600 owing on cc - which he somehow managed to miss 3 payments on. Sounds a bit suspicious to me in terms of him being not as on the ball money-wise as you.

What did the £5600 fund?

Rockchick1984 · 03/04/2014 22:52

Was there a reason he missed the payments?

Original poster
BlueFrenchHorn · 03/04/2014 23:02

He's terrible with money.

6 years ago he got us into £6k worth of arrears on our mortgage, despite me always paying my half to him on time.

We have since paid £40k into our mortgage (my mum helped us) and since thn I took control of all finances - bills, mortgage, everything except:

A) his credit card (which i didn't know he even had until recently)
B) the virgin media account

Both of which he always late pays. And in the case of the credit card, sometimes doesn't pay at all for months.

He'd buries his head in the sand and pretends problems don't exist.

Therefore I control almost every aspect of our finances - mortgage, council tax, bills, nursery fees etc. and part from minor things like late paying the odd bill, we have no money problems as such.

We can live well on our salaries and can afford the monthly repayments.

There's no way to recover from this is there?

OP posts:
Original poster
BlueFrenchHorn · 03/04/2014 23:03

He mortgage arrears didn't have an impact on my credit score so we're attributing his cc as the issue.

OP posts:
SolomanDaisy · 04/04/2014 07:03

Can you afford to buy something based on your salary alone? You could just leave him off the mortgage.

It seems inexcusable of him to not make minimum payments when he can afford them and you can set up a direct debit so he doesn't even need to remember. Why did he do it?

doradoo · 04/04/2014 07:10

Why not get him to set up Direct Debit payments on all his things (esp if cash flow isn't a problem) - that way he wont miss a payment again?

I agree you need to pay off the debt ASAP - but in the meantime it might help to show that you're taking action.

Have you tried a different broker? Is yours tied to a bank / lender? Perhaps someone independent might be able to help?

PossumBottom · 04/04/2014 07:17

If you have a 25% deposit you may be able to get a mortgage without any credit checks. Santander used to do it

PossumBottom · 04/04/2014 07:18

2 years ago so relatively recently i was in a similar position

Alibabaandthe40nappies · 04/04/2014 07:24

The key is his attitude. Does he realise how badly he has fucked up? Does he have the will to alter his behaviour?

If he could keep things clean for the next 6 months then that would improve things significantly.

If he is still going to pay late and generally be an idiot with money then there is not much you can do

OuterFromOutersville · 04/04/2014 07:28

YY to Direct Debits. I'd have a rubbish credit score without them. You could possibly set one up to overpay every month?

NoArmaniNoPunani · 04/04/2014 07:35

It's his debt but you're going to borrow from your mum to pay it. Your mum paid 40k off your mortgage.

You're tying yourself up with a financially irresponsible man and it's costing you/your mum to fix his messes. Is he worth it?

hangingaround · 04/04/2014 07:42

Can you use your deposit to get a buy to let? This requires a 25% deposit and a small salary, so you can get this without involving him. He will have to sign over the deposit money to you as a gift and state he has no financial interest in the property. Then use the income from the btl to get in a better financial situation. At least you'll be taking advantage of capital increase, if you're in an area where that's happening.

nkf · 04/04/2014 07:45

Debt that has been ill managed by him has caused this problem. Borrowing more would only make things worse. He should clear the debts. I am less sure what you should do.

OuterFromOutersville · 04/04/2014 07:53

hanging, I think that sounds risky in the particular situation.

Do you have to move OP? If not, I think you should get DH on board, tighten your belts, and pay off the debt.

TypicaLibra · 04/04/2014 07:56

Definitely don't borrow from your mum for his fuck-up. Why should she bail him out?

You are totally enabling him - he ran up thousands or arrears on the mortgage, got bailed out and has since then ran up thousands on a credit card.

Let him learn that actions have consequences - he's fucked up so majorly that he (both of you) cannot get a mortgage.

Agree with a pp who suggested buying something and leaving him off the mortgage. Could your mum help you out with that?

PartialFancy · 04/04/2014 07:57

I second the Direct Debit.

I have a £10 DD to my credit card because sometimes I'm not well enough to do paperwork. Most months I also pay off the remaining balance, but on dodgy months at least I haven't skipped a payment.

BUT. This will only work if he's fundamentally willing and just hopeless at organisation.

I'm a bit Shock that he had a credit card you didn't know about, even after you'd both agreed you'd handle the money.

And, really, everything SolomanDaisy said.