Partners adverse credit

[danroll]

if my partner has adverse credit and i take out a mortgage with her. will i 'inherit' her bad credit?

[earsugar]

Her bad credit will restrict the kind of deal you can obtain.

What has she got, what loan to value do you need?

[danroll]

i know that,

what i mean is if we enter into a credit agreement with each other, will we both share each others poor past credit.

[EverClean]

It will create a "financial relationship" between the teo of you that will appear on your credit record for 6 years. Her adverse credit will affect your ability to get credit in the future due to this link.

[earsugar]

not really, there are ways around it, contact equifax and experian.

[Beads]

If your partner has bad credit and you have good and you enter into a financial agreement together - you don't automatically inherit her bad credit name I don't believe. However, you are linked by the agreement so should her bad credit continue - you'll be linked in that way as it'll be under both of your names.

If for example, your partner is �10K in debt and you take out a mortgage, I believe she could add another �10k on to the mortgage to pay off the debt and you can have something written into the mortgage by the solicitors that the additional �10k belongs to her - and it can be worked out that she has to pay slightly extra than you per month for the repayments.

That's only my guestimate though - if you're never sure with these things it's always best to speak to somebody like an independent financial adviser, as they'll be more aware of how it works.

[Beads]

ps - when I mention about the bad credit continuing, I meant that if her part of the repayments are not kept up on the mortgage - and you can't pay her portion then you'll be in arrears if you fall behind.

[EverClean]

For fear of repeating myself-

It will create a "financial relationship" between the two of you that will appear on your credit record for 6 years. Her adverse credit will affect your ability to get credit in the future due to this link.

[Ethel]

earsugar - your suggestion only applies where two people (or more) live at the same address with NO financial relationship - independent house sharers, for example.

It will not work where they do have a financial relationship, such as a joint mortgage.

Everclean is quite correct.