What happens if my partner has bad credit?
Getting a home loan can be a really exciting time in your life. You’re taking the first steps to getting a property of your own and you’re hoping to get a joint mortgage with your partner. But what happens if your partner has bad credit? Regardless of your own credit history, your partner’s credit can seriously affect your home loan application.
Getting expert advice from Loans for People with Bad Credit can help you to get a joint mortgage one with bad credit.
We can help direct you to the best lenders for your and your partner’s financial situation and we’ll do everything we can to ensure you get the right home loan for you.
Understanding bad credit
Before you ask yourself ‘can I get a joint mortgage with bad credit?’, you’ll need to first understand exactly what bad credit is. It’s a term that many people have heard but don’t fully understand, which puts them at a disadvantage when it comes to figuring out how to get the best home loan for them and their partner.
You can have bad credit for a number of reasons:
- Failure to make payments on time or default loans
- Multiple loan applications to various lenders
- Previously declared bankruptcy
- No record of borrowing
Did you know that it’s quick, easy and free to check your credit score? Speak to us today so we can help you understand exactly where you stand with the credit situation of both you and your partner.
The impact bad credit can have
When it comes to getting a joint mortgage with bad credit, it’s inevitable that things could be harder than if both you and your partner had good credit scores.
With bad credit, lenders are often wary about your ability to pay back a home loan or mortgage. The effects bad credit can have on a joint mortgage might include:
- Higher interest rates due to higher risk to the lender
- Higher deposit to reduce borrowing and offer security to the lender
- Tighter loan terms and stricter repayment criteria
Having a partner with bad credit
Unfortunately, even if you have always had an exemplary financial record and regularly pay all bills and loans back on time, if your partner has bad credit it’s going to affect you as well.
Getting a joint mortgage one with bad credit means that essentially you’ll be seen as one unit when it comes to borrowing money – and your partner’s bad credit will lower your overall credit as seen by the lender.
Don’t panic when asking ‘can I get a joint mortgage with bad credit?’ – the answer is absolutely yes – but you need to do things carefully and ask for expert help.
Getting a home loan if your partner has bad credit
There are lots of steps you can take when it comes to getting a home loan even if your partner has bad credit. We’ve rounded up our top tips, but contact us today to discuss your individual circumstances in depth:
Understand your partner’s credit score: try to figure out why they have a low credit score. Always check for errors in their credit report and request that these are rectified if necessary. If there are reasons for the bad credit that can be solved within a few months or with some good financial improvements, consider making these first and then applying for a joint mortgage. You may be able to substantially increase their credit score.
Take the mortgage on your own: this often isn’t the ideal option especially if you’d been considering getting a joint mortgage with bad credit but think about it seriously with your partner. If you have a strong and stable income, good assets and an excellent credit rating, it could make sense to apply for a home loan by yourself. Remember though, with this option the mortgage will be ultimately your responsibility and your partner with bad credit will not be liable for any payments if anything changes in your relationship status and you decide to separate.
Think about a co signer: this is another option you could consider if your partner has bad credit but it’ll need to be someone who you trust entirely and who is happy to help you by offering their excellent financial history and credit as an extra security for the lender. It’s really important that the co signer is aware that they’ll be financially responsible for taking on the joint mortgage if you default on your loan.
Find the right lender: If there are specific reasons for your partner having a bad credit score, you may be able to find a lender who is willing to listen to your case and to consider the circumstances. At Loans for People with Bad Credit, we have access to a range of lenders who specifically work with people with bad credit so are more likely to understand your situation and be able to help.
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