Hi, I'm new to this so sorry if i waffle a bit..
My partner has just moved in with me. I own my own house but we are hoping to get a house together next year. Due to his credit history the only bank that will give him a bank account is woolwich (they probably didn't bother to check him out!). He sorted all the payments he owed out last october and his credit report from equifax only shows one thing which is £716 to Barclays defaulted in 2002 but says settled next to it. I thought we'd be able to open an account with my bank now that everything is paid but they won't touch him even with my credit rating.It says on the report that defaulted accounts are kept on file for 6 years. Does this mean its going to be impossible for us to get a joint mortgage or is there any way around this?

there are some companies that will give credit to applicants with defaults/CCJ's etc on their credit files but these companies charge higher rates due to the risk factor. I think you'd either need to apply for a mortgage via one of these companies or wait until the default has expired.

Thanks abi33, i thought that with it being settled we may be able to apply to the company to have it removed.I would rather wait until it has gone though than have to take a poor deal on mortgage rates.. another few years won't hurt. He has been accepted by barclay card for a credit card for people with poor credit history (it was them who the debt was with in 2002) Is it true that his credit rating will improve if he uses this without missing any payments? Or would it be better just to sit and wait?

you're welcome ruthieok
yes that is true about the credit card....if your partner had no credit before applying for a mortgage then the only credit history availible would be previous history.

If the credit card is used and all payments are kept up to date then this improve his credit score and should also help a mortgage company you are applying to see that he is no longer a risk.

Hi Ruthieok

I work for a mortgage company & I look at credit reports all day. If the only adverse credit your partner has is a settled default from that long ago then most mortgage companies would not really be concerned. The best thing to do though when applying is be upfront & tell them about it before you apply & if there was a good reason why your partner fell behind with payments he can also apply to put a notice of correction on Equifax. This means then when the companies credit score him his explanation will flag up. The other reason why you might be turned away is if you are fairly young or have not had that much positive credit. A lot of companies work on a point scoring system. There are somethings that will increase your score. Sometimes if you are on the electorall roll that will help. I suggest that you find out a mortgage companies criteria first before submitting. If you keep sending in applications then this can also reduce your points. Some companies do not like to see that you have applied at lots of other places. Hope this helps!

My brother went bankrupt some years ago and not only did he get bad credit ratings, but mymums house (where he was living when he went bankrupt) also got bad rating. I'm sure things may have changed by now...but Chopstickslapper offers some sound advice and obviously knows their stuff being in that line of work...