UK Property Law
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Could you explain your situation a little more please?
Just to be clear.
You and the property are based in the UK.
The property is registered in the names of your wife and your daughter with a mortgage registered against it in favour of NOrthern Rock.
A personal loan taken out in the name of you and your wife is also secured against the property.
If you and your wife are not able to pay the FP repayments then you want to know if possession proceedings are taken by your creditors how this will affect your daughter's credit rating.
If you daughter is named on the mortgage then the first thing you want to avoid is the mortgage company taking action in respect of the arrears because if possession proceedings are taken and the property is sold then this will affect her credit rating and the sale will be noted on it.
If action is taken by FP in respect of arrears on their account then this can only be taken in respect of your wife's share in the equity of the property - not your daughters, this is protected and her credit rating will not be affect or, if it is, she can apply to have it altered to reflect the fact that the default as nothing to do with her.
Focus on paying the mortgage first and then see what you can do about the second loan.
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