You have a good credit report and no history of missed payments. Unfortunately, your partner’s situation is different. Will it stop you from getting a joint mortgage?
You want to apply for a mortgage and your credit history is good. Your partner’s on the other hand is another matter. Can you get a joint mortgage if they have bad credit? It is possible, though every lender is different and has their own guidelines and criteria.
Most lenders will want both of you to be on the mortgage application and will make a decision based on the credit profile of the weakest applicant. This means that, if you have a good credit history but your partner’s is poor, your record can be hampered. In short, a poor credit history will outweigh the good one.
Can you apply on your own?
You may be wondering if you can apply for a mortgage on your own. Some lenders will accept a single applicant on the mortgage application so long as you meet the criteria and can demonstrate you can afford the monthly payments on your own.
Otherwise, when carrying out a credit check for a joint mortgage, the majority of high street lenders will score the mortgage application jointly. Borrowers must meet a joint credit score to get a mortgage approved.
Some lenders do things differently and will search both applicants’ credit history, then look for any issues they have chosen to exclude.
Missed or late payments
If there has been a default or County Court Judgement (CCJ) registered in the last three years, many lenders are likely to decline your application. In addition, missed or late payments on any credit commitments, such as mortgages, loans, credit cards, car finance, mobile phone or utility bills can also cause problems. So too can the presence of recent payday loans. If your partner has entered a debt management plan, been made bankrupt or had a property repossessed, this can significantly affect a mortgage application.
If these appear on your partner’s credit history, there may well be lenders who will still look to help, although they will be likely to ask a series of questions about the circumstances of any credit issues. If you do get a mortgage approved, you will most likely have to pay a higher interest rate than if you both had good credit and may need a higher deposit.
It may sound strange but there is another type of credit issue your partner may have that could affect your application – no credit. If your partner doesn’t have a credit history, lenders have no way to tell if they are a responsible borrower. They may need to provide proof that they have paid rent and bills on time and document their employment and income. They may also need to show evidence of savings and investments.
Get on the electoral roll
Incidentally, being on the electoral roll is incredibly important when it comes to credit scoring. Not being present on the votes roll will impact your credit score and some lenders might even refuse to lend on this point alone.
Even though your partner is the person with a poor credit history, you might also want to check your credit report just to ensure there are no nasty surprises.
In all of these instances, it’s best to speak to an experienced mortgage broker who can advise you on the best type of lender and mortgage product to suit you. We’re here to help.