Default on Credit File

Posted on 11 July 2012 by Jo


Our fixed rate mortgage with northern rock is coming to an end. I now have a default on my credit file but my husbands credit is fine. I know we won't be able to apply for a joint remortgage together but can my husband remortgage on his own or if we stay with our present mortgage lender will they credit check us both to have another fixed rate deal?

Jo

It is unlikely that Northern Rock will credit check you if you decide to stay with them and transfer on to a new Fixed rate, but they do reserve the right to carry out a check and rescore your account.  If you have been paying your mortgage on time and there have been no problems with missed or late payments I personally think it would be unlikely although I can not categorically say they will not. 

As far as applying for a mortgage with another lender in just your husband's name this will not be as easy as you may think.  Any mortgage has to include all the people named on the title deeds and so for a mortgage in just your husband's name your name would have to be removed.  There would be additional legal expenses for this and it is not covered in the free legal incentive you find on some remortgage deals.  You would also find that you husband's credit score would be reduced anyway because there is a known financial association between you both and your default would show on his file.

Depending on the size of the mortgage, when your default was registered and how much equity there is in the property it might still be possible to get a remortgage in your joint names and I would recommend that you find out from Northern Rock what they are willing to offer you and then speak to an independent mortgage adviser to see what alternatives are available before deciding how to proceed.

You can talk to one of our mortgage consultants by calling 0344 346 3672 and telling them the date and title of your question.

Peter

Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

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