Getting a joint mortgage where one has poor credit.

[boringlyboring]

My dp has a dmp which is due to be paid off within 3 years (less with overpayments as and when he can)

The current mortgage is in my name for this reason, but that meant that I could only borrow a low amount. Managed to find a house within the price range.

From my understanding the dmp will be ‘marked’ on his file for 6 years after the debt has been cleared? So that will make it at least 9 years before we can borrow together.

In the past I’d seen that you can get ‘bad credit’ mortgages, with higher interest and deposit needed. Are these more trouble than they’re worth?

Can I ‘protect’ my credit history if I am financially linked to him or would mine be affected also?

Will it be a case of waiting it out?

Two main reasons I ask:

1. Planning on when we will be able to move house and borrow together

1. My salary has taken a hit following redundancy - when my fixed rate is up I don’t think I’ll be pass affordability if I was to go for a shorter term or new lender (though I can physically afford more than I’m repaying now, on ‘paper’ I can’t).

If you get a mortgage with him and he gets into debt, you will end up carrying it it getting a black mark yourself. I’d rent.

I already pay a mortgage snowy we both live in the house. He has existing debt which he is repaying currently.

I’m assuming your comment about the ‘black’ mark still stands with existing debt though...

So it’s definitely a case of waiting the 9+ years before we can own together

I’m not a financial advisor, I just think it’s dangerous to take on more debt (mortgage) if he hasn’t got a good track record. There’s a reason why lenders won’t lend in some cases and I would worry about taking on a mortgage with him , which might affect your own credit rating if he doesn’t meet his end of the payments. Others might disagree and have more knowledge of this!

Thanks snowy I get where you’re coming from. He’s ok now (!) much better with managing money so I’ve no concern that end. The debt itself is from a few years ago and he fell behind after a long term hospital stay and SSP.

I know I still need to keep my own rating healthy though.

My OH has had a terrible credit rating and through blood sweat and tears we have sorted his debts out and he is now slowly climbing the score ladder in the hope of buying his own place. But he has a CCJ from Jan 2016 and despite never having missed a payment on his bills and credit card since Dec 2016 he can not seem to get past the very poor/poor range. I would never, ever tie my credit rating to his!

My Sister had to make herself bankrupt. It has never affected her DH.

I would suggest you take some advice before making any decisions.

Marypoppins that doesn’t sound right. I think thou canbe afftected by a bankrupt spouse www.citizensadvice.org.uk/debt-and-money/debt-solutions/bankruptcy-2/partners-and-bankruptcy/liability-for-joint-debts-if-your-partner-is-bankrupt/

Unless they are keeping a huge secret from us, then I'm not sure why it wouldn't be right.

They had no joint accounts, and she had to give up work, due to childcare, which is how she ended up in that position. He gets finance for various reasons, and he bought something called the 'beneficial interest' (?) in their property, as it was in a huge amount of negative equity.

It was about 14 years ago, so I don't know if something was different back then.

Snowy it’s certainly possible. Just being married to someone doesn’t financially link you to them, only becoming financially linked to them by having joint accounts does.

My DH’s credit rating is crap and mine is excellent, hence why we don’t have any joint accounts.

OP...... based on this there is no way I’d link myself to someone who was on a DMP, your credit rating will drop like a stone. Can you not get a mortgage in just your name? TBH I don’t think anyone would lend to someone on a DMP anyway!

Absolutely lottie. They were in my Sisters name, and nothing was joint. Her situation changed, beyond her control.

My DSister has worked incredibly hard for well over a decade and has built herself, as well as her credit files, back up. In fact, she's in a much better financial position than I am now.