Poor Credit Rating

Posted on 9 September 2011 by kate

We currently have a joint mortgage, but are selling and my credit rating is poor. We intend to buy using my husband as the sole mortgagor, can I still live in the house, and does this affect his mortgage?


In principle there is no reason why you can not buy using your husband as the sole mortgagor and still live in the house.  You need to take independent legal advise about how to protect your interests as it will mean that the house has to held in his sole name too and you will not be named on the title.  It will also mean that you will have to sign a consent to mortgage declaration giving your mortgage lender prior claim to the property should they need to take possession.

With regards to the mortgage it is possible your poor credit will affect his application.  This is because your have a proven financial relationship, through your existing mortgage if nothing else and therefore your credit records will show up when anyone does a credit search in his name.  The extent to how it will affect his application is very difficult to judge because it will depend on how much deposit is being put down, how much he is borrowing in comparison to his earnings, his own credit record and the lender's own credit score.  All the major high street lenders use a credit score to assist them in deciding who to lend to, but there are still lenders around who will manually underwrite a mortgage application and you will often be more successful with these were circumstances are slightly out of the ordinary.

I believe we can help you and that you would benefit from speaking to one of our independent mortgage advisers.  Please call 0344 346 3672 and tell the consultant the date and title of your question, they will then be able to advise you further.


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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