Husband's Poor Credit Record

Posted on 26 April 2010 by Mrs Grossmith

My husband and I have recently separated although we are still married at present, have a joint bank account and joint mortgage. I want to borrow more money on my mortgage to buy my husband out of his share of equity in the property (30% -£20,000) but I have been refused more borrowing due to my husbands not so good credit rating. Can I put the mortgage into my own name and then reapply for further borrowing or will my husbands record still hold me back?

Mrs Grossmith

All Lenders will carry out a credit search as part of their underwriting on an individual and this will show up any records in your sole name, joint names with your husband and any records in his name only. The records in his name will be taken into account because there is a financial association between you both and this will not cease even after you separate.

If however, you can prove that the poor credit records occurred due to circumstances outside of your control or knowledge, then it may be possible to get a Lender to consider a mortgage in your sole name depending on the overall quality of the rest of the application. As your existing Lender has already declined your application for further funds, it is unlikely they will reconsider this and I think you are more likely to be successful if you consider remortgaging and borrowing additional funds to buy out your husband.

I recommend that you get a copy of your credit report and take this, together with details of your existing Lender and mortgage product to an independent mortgage broker who will be able to approach those Lenders who are not totally bound by a computers decision and have the flexibility to underwrite an application on it's merits.


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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