Partners Bad Credit Rating.

[ScarletRose]

Hello!

My partner and I are looking into buying a house together.
However, I know I have good credit rating with only being in debt with a mortgage and also checked.
However, my partner has some outstanding debts from his younger days, which he "ignores" or tries to forget and also a CCJ.
This is obviously going to affect us.

Obviously paying off these debts will help, just wondering how else can you improve your credit rating?

[scoobybob]

You don't necesarily have to have a fab credit rating to obtain a mortgage. I work for a high street bank and the criteria is based on 1.ability to pay (i.e. is there enough disposable income to cover mtg repayments) 2. deposit saved (ideally about 20% of property value, however some lenders are happy with less) 3. property valuation (is it worth what you are paying for it).

I have known us to give mortgages to people who are new to the country & so would have no 'credit rating'.

I would recommend your partner gets his head out of the sand (so to speak) & contact a credit reference agency (Experian would be good). You can get a form to do this from a local bank or online. Then you will know exactly what you are dealing with. If you are lucky some of the older/smaller amounts will have 'dropped off'! Paying off the debts would be recommended, you can also ask for a note to be put on your file which can be seen by any lenders who search on your partner. Something along the lines of 'I got into debt due to personal circumstances & extreme financial pressure but am now actively repaying money owed & wish to state that I will deal with any future borrowing responsibly'

I hope that helps & good luck.

[Uzoma]

Lots of good advice given already. Also remember that all credit, good or bad, is removed after 6 years. You can also try the Equifax website to get a copy of your credit records there.