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Joining finances and mortgage after a dmp

2 replies

PureBlackVoid · 08/10/2022 15:52

DP had a dmp from before we met, which is due to be paid in full in the next couple of months.

We kept our finances separate on paper, so that
my credit wasn’t affected but we pay everything jointly, including the mortgage which is in my name. My main account acts as the ‘joint’ account, all bills come from there and he moves money for bills, shopping + savings for house stuff into that one.

I also have a ‘good’ loan in my name which was used for some home improvements, and affects my affordability. When I come to remortgage, my income alone won’t be enough to borrow the amount needed to remortgage, based on some of the calculators.

The intention was always to join finances/add his name to the mortgage once his credit was better, so not to affect mine. The dmp provider has told him it will come off his credit report ‘straight away’ once it has been paid in full, and I’d like to get some advice on the next steps, ie is it better to wait a while before joining finances generally? Not sure if it depends on a lot of other factors or if there are some general ‘rules’ around this.

For the mortgage, would a recently completed dmp mean he wouldn’t be accepted? Is it complicated to remortgage jointly, if it’s been in my name for so long? Last time I remortgaged, he had to sign one of those ‘no interest in the property’ things, so assuming we go with a different bank this won’t matter?

Appreciate people may not be able to tell me exactly, but I would like to get a general idea so I can plan ahead as the mtg fixed rate ends soon, plus it would make life a lot easier to have an actual joint bank account we both have access to.

OP posts:
gogohmm · 08/10/2022 15:59

I would seek specific expert help on these. Generally though once the order has been fully paid it will drop off the credit rating report (may take a while, they are not fast) but then he will need to rebuild his credit rating.

Only joining your current account may be the best first step, possibly a joint credit card, but I haven't dealt with your exact situation, I'm dealing with people at the beginning of this journey, trying to help at least.

Just one thing, if he's "buying into the house" check if stamp duty is affected - I'm facing this scenario currently

PureBlackVoid · 09/10/2022 09:55

Thanks @gogohmm

I don’t think stamp duty will apply as the house is worth less than the threshold.

Good to know the dmp will come off quickly, I always assumed anything like this stayed on for 6 years after it’s completed!

I was going to add about his credit rating, but didn’t want to waffle on for much longer in the OP. He tried to check it a few times, a couple of years ago and nothing actually came up (can’t remember which site it was). But recently he randomly applied for a store credit card and got accepted, he uses it every now and again and pays in full. Compared to a couple of years ago, he used to get straight up rejected even for phone contracts, so I’m hoping that’s in the right direction.

Would a mortgage broker (?) be best to ask? I’ve only ever gone direct to banks to apply, using the calculators finding rates etc to pick the lender myself so wasn’t sure if a broker would provide advice on this kind of thing.

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