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Ok - wife and I are separating, and we have agreed she will stay put in the family home. and I will buy a new flat
she is going to take over the mortgage - and partially buy me out if possible by extending the mortgage (I will also retain a legal charge of a portion of the value of the mortgage)
problem is she had just told me that she has missed a credit card payment - and has a black mark on her credit score.
can the building society refuse to let her take over the mortagage? even if she doesn't ask for any extra borrowing?
Thanks
Tim
They could, but they'll be more interested in affordability and equity, than 1 missed credit card payment. As long as it's only that...
grievoustim - Memberproblem is she had just told me that she has missed a credit card payment - [b][i][u]and[/u][/i][/b] has a black mark on her credit score.
That suggests something other than one missed CC payment.
Good spot Druidh - 1 missed credit card payment on its own is not really noteworthy...
Yes subject to the lenders t&c's BUT if its only one payment then they might let it go
[i]can the building society refuse to let her take over the mortagage? even if she doesn't ask for any extra borrowing?
[/i]
If her income doesn't meet their criteria then yes they can refuse as its effectively a new product they would be selling.
Its all down to credit score now days and where as bad credit WILL prove to be an issue esp if its recent and unsatisfied it might just scrape through. If she's taking the mortgage over on her own then the lender will in 99% of cases treat it as a new application and so it needs to fit their criteria.
to clarify
she spoke to the building society in October - and all was fine then
maybe black mark is strong - she missed a payment (she says she never got the bill, but "mislaid" it is more likely". she is all paid up now .
she is enrolled in credit alert things from equifax, and it came up on that. Maybe "black mark" is too strong but it will show up I think
just have to hope that its too low level to cause any issues
You will be required to do a 'transfer of equity'/ 'change of borrower' application. She will be treated as though she is a new customer and will be scored in the same way- there is no requirement for the lender to take you off the current agreement and if the lender thinks that it's risk is increasing then it will be a no.
BTW which lender is it as I might be able to give you some insight into their individual u/w policy.
oxnop - it's nationwide
thanks for the help
- a credit check will deffo be required even if there is no further borrowing
- if the LTV is below 60% then 'actual' proof of income may not be required
- income multiples are not factored any more it's monthly expendature v's outgoing (not your wifes approx expen but based upon ONS figs) so before you pay application fee it may be worth going through a realistic budget planner with her
- shop around for a solicitor- don't go with who nationwide suggest as they will be taking a cut
BTW - I wouldn't worry if it's just 1 cc payment missed - if she says it was an oversight and that the payment is now on DD then there will be no problem (make sure she discloses it up front when the mortgage advisor is talking about credit check disclosure - rather than her been asked about it)
If you want any more specific info let me know - email in profile (but not in an official advice capacity - gave up advice a few year ago and run operations for 3 uk based call centres with 450 mortgage staff)
When we got our mortgage with Nationwide 3yrs ago, they didn't do a credit check as far as I know. Think we asked as my gf hadn't had any CC's or contracts and so her credit score was only 'average', she had failed to pass a credit check for a mobile phone a few months earlier.
Anyway, we have just renewed, and as far as I know, no credit check was done this time either. You normally have to give your consent for a credit check don't you?
Edit: Actually, gf just claimed they did do a check originally...
Spooky- don't need a credit check to renew your mortgage as it's a matter of retaining your custom. Only need a credit check when something is changing i.e. Increasing mortgage amount or taking someone off.
Totally agree with you about nationwide not needing to do a full credit check 3 yrs ago- exactly the reason why we had all this sub prime lending!
And yes it is a data protection issue/complience issue when having a check done and customer consent is require - nowadays it's 'say no to credit check say no to finance'