Need some advice

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r_l

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Post by r_l » Thu Mar 29, 2007 8:08 am
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I had debts of around £22k. i have been paying into my IVA now for 18months. My finance has a healthy credit rating and £30,000 deposit to put on a house. and doesnt know of my situation.

If we are to get a joint mortage- i am worried that he will have to pay a higher intrest rate. i realise of have to tell him about the IVA but i want to get all my facts clarifyed before i do.

My father however has offered to pay my debt of early- apart from me not having this debt to pay- will paying this off early have any benefit to me whilst applying for the mortage?

[:u]Anybodys advices welcome - thankyou X
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Welsh Boy

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Post by Welsh Boy » Thu Mar 29, 2007 10:04 am
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In answer to your question if your credit rating is poor at this present time I don`t think Dad paying off the debt will have any impact on your rating improving immediately. However if you no longer have these financial commitments then this could be factored in to possibly obtain you a larger mortgage based on affordability i.e. if you don`t have other debts to service. With regard to the interest rate you will/can get this will be dependant upon the results of a credit search and each one is judged on it`s own merits. Hope this helps-Tony
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Hunter1

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Post by Hunter1 » Thu Mar 29, 2007 10:40 am
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Hi,

If you try for a joint mortgage your IVA will definately be taken into account and you will need a higher deposit (10% +) and will almost certainly pay a higher interest rate.

It may be better for your partner to apply for the mortgage in their name only (if it's possible to do this on their income).

Also do you live together currently? If you do your credit history may still be taken into account even if you are not applying for a joint mortgage.

If this is the case your partner will need to file what is called a 'Notice of Disassociation' with the credit reference agencies. This will mean your details will not be searched when your partner applies for credit.

I would come clean with your partner about this - they will find out whatever you do and it will be far worse if this happens when you apply for a mortgage.

Hope this helps.
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