Financial Advice Please

[answerbanker]

My daughter has had a mortgage with her boyfriend for 6 years - they have split up and she is going to take her name off the house and mortgage.
Would she then be classed as a first time buyer when she applies for another mortgage ?
Also - she moved out and her ex defaulted on the last payment of a utility bill (£50) which was in her name. She only found out when she was refused credit. She has paid the money and used a credit search agency (experian)
She has asked them to put a note on her file but is worried that this might affect her next mortgage application
Advice would be very welcome
Thankyou

[boxtops]

I don't think she'll be classed as a first time buyer any longer, she's not - I wasn't, when I bought my own house after my divorce.

She needs to contact the utility company too, and ask them to notify Experian of the payment - experian can't change things based on information from the person, they need it from the organisation to whom the money was owed. If she then checks again in a few weeks, it should be corrected (that's how it worked for me, anyway).

[factor-fiction]

I can't immediately think what special status a 'first time buyer' has. I take it to mean someone who is buying a property and doesn't already have a 'live' mortgage so the lenders know they don't have existing mortgage commitments

[answerbanker]

Some mortgage offers are advertised for First time buyers I think
She has contacted Experiian and told them she has paid the debt off - they have had confirmation from Virgin Media and put a note on her credit report but it still appears as alow credit rate
She has a good wage and has worked for the NHS for 11 years.
Will this affect a mortgage application ??

[bednobs]

hi, she would not be classed as a first time buyer

[ubasses]

The first hurdle is that she cannot just take her name off a Mortgage. Her Ex will have to qualify for a Mortgage in his own right, and take out a new Mortgage.
If he does not meet their requirements, the Bank will not release your daughter until the joint loan is repaid.
With respect to Credit Agency, it will probably still come up as adverse information when they score her, if she gets a copy of her record with the annotations on it regarding the default, they should be able to refer it up the chain and may be able to get it overriden. I will qualify this with the fact I retired 8 years ago before the recession so am not up to date with how strict they are now.

[boxtops]

Perhaps she has a low credit rating because she doesn't HAVE any debts - earning a good salary doesn't affect it, the credit rating goes on your credit history and how good a payer you are. People without any credit cards or loans can have very poor credit rating, as they have no history.

[dzug2]

Don't first time buyers get a stamp duty concession? Or was that a temporary blip?