Can my husband re-morgage if I have been "black listed"?

Question

My husband bought our house solely (my name is not on the mortgage) and pays the mortgage. We have loads to do to our house - since we moved in over 7 years ago, and a work colleague suggested re-mortgaging. I didn't tell her (for obvious reasons) that i have been black listed and I was wondering how this would effect my husband if he tried to re-mortgage and free up some money.

Answer 1

it will have an impact unfortunately. The credit reference agencies keep a list of what they call 'connected persons', this is people who live at the same address as you, or with joint accounts.  When someone runs a credit search it brings up a list of connected persons, and the lender will usually run a search against them if the connection is still in existence.

It depends on a number of things on how badly it will affect the decision.  If it was more than a few years ago and you've kept up repayments since then, it might not be too bad. If you only had one CCJ, ditto. And if you've since repaid the money or come to a financial agreement to repay some of the money, again so much the better.

It may have several impacts. 1) he may get the second morgage advance declined or 2) he may have to pay a high rate of interest.

No-one can say how it will affect the decision, as each lender analyses the information in their own way.  

If it's through his own bank for example, the big 4 high street banks tend to pay a lot more attention to the financial dealings with the person (your husband) over the life of his account. If he's had an account for 20 years, been a good customer, that will lend a lot of weight to their decision.

If he goes through a broker, a lot of big brokers will do a preliminary credit analysis themselves and only apply to lenders who they know are more likely to accept, as having an application declined isn't good for your husbands credit record (and the broker doesn't make a sale).

You'd be surprised how many spouses get into difficulties like this, especially where the husband earns most money and pays most of the bills.

Answer 2

As the 'black-listing' applies to you and not your husband there should be no problem. The house is the security that the lender is interested in. Provided he doesn't exceed the value of the house in his borrowings, they won't be interested in you. A mortgage is rather different from a credit rating (as you are offering security) and your husband can demonstrate 7 years record of payments which would show he is a good risk.

Answer 3

On the face of it, there shouldn't be a problem with your husband re-mortgaging in his own name; however, if a financial link has been established between yourself and your husband, then this will have an effect on whether or not it will effect him. Do you have any bills, loans or cards in joint names? If so, this is a financial link.