Q I bought a house seven years ago – in my name only. My husband, son and I live in the house and I have paid the mortgage since then. My husband doesn't make any financial contribution towards the mortgage. All the household bills are in my name, although my husband does pay half of these costs.
I have recently found out my husband has more than £20,000 of debt consisting of unsecured loans, credit card bills and an overdraft. I found this out as when I checked my own credit rating as I am considering switching mortgage. As I am a public sector worker there is some degree of uncertainty over my job at present, so I am looking to try and reduce my mortgage payments by spreading them over a longer period in case I have to take a lower paid job.
My husband also works in the public sector and I am worried that if he defaults on his debt repayments that, because we are married, the loan companies will automatically try and recover the cost from our house – he doesn't have any assets of his own. If this is the case is there anything I can do to try and protect myself from this scenario? SM
A To put your mind at rest, the companies your husband is borrowing from will not be able to recover his debts from your house if he defaults on his repayments. They would be able to pursue you for your husband's debts only if the loans were in your joint names, which I am assuming they are not.
However, if your husband's name appears on your credit file you must be financially connected in some way, as people can only be linked on a credit file if there is evidence of joint financial activity. If all your finances are totally separate and you have no joint credit, it would make sense to get your husband's name taken off your credit file. That way you won't run the risk of having his indebtedness affecting your ability to switch mortgage.
This is also a good forum for questions, and knowledgeable answers.
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