Credit Rating

[drinki]

Hello, Can anyone please advise on the following problem.
My mortgage lender has taken action for repossession of my property they are taking me to court on The 19th October.
I am making payments and have got the arrears down to two months.
My partner has agreed to help pay the debts before going to court but due to a previous bad relationship she is reluctant to do so without some assurances that she will get her money back or is at least covered.
I have said that I will add her to the mortgage and my bank has agreed to this. However she has a very good credit rating and has never had any trouble in getting or securing credit.
Will my bad credit history (I have CCJs) affect her credit rating in the future, I know that some credit agencies take ratings of the property. Is it best we come to a legal agreement and ensure she keeps her good rating or will this not be affected by adding her to the mortgage.

Your help is appreciated.

D

[quibbmedusa]

hi there..i had problems with credit ratings a few years ago, and when i asked to look at the search, half the names on it were nothing to do with me, but were people that used to live in my house before i moved in, so, yes, it could affect her credit score.

If i was you i would come to an agreement that doesnt involve putting her on the mortgage

[Oneeyedvic]

If the bank has agreed to it then you are too late - an 'Association' has been made between you two. Any lender who carries out a search on either of you in the future will automatically get details of both of you.

Whilst she has a good rating, to be fair, lenders will still see her as a good risk - so long as none of your joint agreements fall into arrears.

Essentailly, her credit rating shouldn't be harmed too much

[sandras]

Your credit rating would certainly affect her rating in my opinion.

As regards your hearing on the 19/10/05, if you have brought the arrears down to 2 mths, it is likely that the lender will be granted a suspended order, which would give you time to pay the 2 mths arrears off over an agreed period of time which may mean you do not have to lend money off your friend or affect her credit rating.

If however the lender is granted possession, I would definately lend the money off your friend, clear the total arrears and then go to a solicitor and arrange that a charge is made against your property for the money you owe her - This way if you are unable to pay her back then when you sell the property or if you are unfortunate to get into a repossession scenerio in the future, she stands a very good chance of being repaid - subject to the amount of equity in your property - check with a solicitor though to be sure.

[Mr.Z]

Nonsense,

Credit is scored on an individual basis, thus your partner will not be impaired by your past history.

As long as you both keep up with the payments then she will not receive any negative recording against her name. In fact, her credit file will state that she has borrowed some money and is paying it back successfully - potentially improving her rating.
In today�s extremely competitive market, lenders appreciate that households/partnerships could contain an element of bad risk. This is why each individual is credit scored. Not the  house, marriage, partnership etc..etc..etc..


Hope this provides further clarity.

Regards

Mr.Z