Mortgage with CCJ's\Contractor Mortgage..

Dexter08

Hi,
I am an IT Contractor billing at 180 per day rough income per annum is £43,200 and my fiances is £18,000 and she is a permie.

We have found a property valued at £195,000 and have the necessary £19,000 deposit and money for fees and so forth put away ready.

The problem I have is that I have a shocking credit history, I have 3 CCJ's that are satisfied and a number of defaults from when I sold my last flat to settle everything up.

I am not aware of any defaults in the last 2 years that I have picked up and as far as I am aware I don't have any outstanding debts to anyone other than the milkman.

We are renting at the moment and paying out £750 a month for a one bed flat, the house is a two be two reception place with a kitchen and a garden.

We really love the place but I am not sure we can get a mortgage with my history and the current financial climate.

PLEASE, PLEASE, PLEASE anyone that can help please say do say as we have fallen in love with this place and willing to stay here for 6-8 years.

It has been reduced from £235,000 to £195,000 to sell as it is part of a portfolio.

Cheers as always..!!

Dexter08

minimike2

Ok, you will need £19,500 deposit, £1950 Stamp Duty, £1000ish Legal Fees, £500ish homebuyers report = £22,450.00 to get going with.

With your credit history and that loan to value, you will not get a mortgage with a prime lender.

1. How much are the CCJs for
2. When were they satisfied
3. Same for defaults

At that LTV you are potentially looking at an interest rate of up to 9.6%, depending on the values of the above and when satisfied.

Dexter08

minimike2 wrote: »

Ok, you will need £19,500 deposit, £1950 Stamp Duty, £1000ish Legal Fees, £500ish homebuyers report = £22,450.00 to get going with.

With your credit history and that loan to value, you will not get a mortgage with a prime lender.

1. How much are the CCJs for
2. When were they satisfied
3. Same for defaults

At that LTV you are potentially looking at an interest rate of up to 9.6%, depending on the values of the above and when satisfied.

The CCJ's were for £226, £248 and £1200 but they should all be satisfied now, just waiting for the letters to come through saying that they have written to the CRA's.

The defaults are way back when I was at my flat, that would be 2006 now I think, oh no maybe late 2005..!!

The fees are not the problem as with the stamp duty and so forth, I have looked and the mortgage payments on a £171,000 mortgage are about £1548 a month

Regards,
Paul

herbiesjp

90% borrowing with CCJs and defaulst in the background

Very tough scenario, but it will depend on your credit history - do you both have up to date copies of your credit files? These will be very important in seeing what kind of rates will be available

If you have been "clean" in the last two years you may be able to get away with relatively standard rates.

But it will also depend on whetehr those lenders will accept your IT contractor status - How long have you been doing that? What proof of income do you have?

Dexter08

herbiesjp wrote: »

90% borrowing with CCJs and defaulst in the background

Very tough scenario, but it will depend on your credit history - do you both have up to date copies of your credit files? There will be very importnat is seeing what kind of rates will be available

If you have been "clean" in the last two years you may be able to get away with relatuvely standard rates.

But it will also depend on whetehr those lenders will accept your IT contractor status - How long have you been doing that? What proof of income do you have?

I don't have an up to date copy of my credit file but I can obtain these I believe online??

I have been contracting now for nearly 2 years, I am on a fixed term contract til the end of October with a 4 week notice period, they are looking to renew for a further year too (Fingers crossed)

Dexter08

minimike2

Dexter08 wrote: »

The CCJ's were for £226, £248 and £1200 but they should all be satisfied now, just waiting for the letters to come through saying that they have written to the CRA's.

The defaults are way back when I was at my flat, that would be 2006 now I think, oh no maybe late 2005..!!

The fees are not the problem as with the stamp duty and so forth, I have looked and the mortgage payments on a £171,000 mortgage are about £1548 a month

Regards,
Paul

What lender / interest rate have you based that figure on?

luckyfool

Were all 3 ccjs also registered over 2 years ago? Do you have rough dates for these?

herbiesjp

Dexter08 wrote: »

I don't have an up to date copy of my credit file but I can obtain these I believe online??

I have been contracting now for nearly 2 years, I am on a fixed term contract til the end of October with a 4 week notice period, they are looking to renew for a further year too (Fingers crossed)

Dexter08

Yep - you can get these on-line

And you should get them asap, as this is the information the lender will look at. So if it is wrong or needs updating you should ideally get the changes done and then proceed.

However, if time is of the essence you can put a notice of correction to update the file

Dexter08

minimike2 wrote: »

What lender / interest rate have you based that figure on?

To be honest I am not sure who the lender was but I was looking through some adverse credit brokers online and that was a figure that was being touted on the site.

Dexter08

luckyfool wrote: »

Were all 3 ccjs also registered over 2 years ago? Do you have rough dates for these?

I paid the last one off last month, so waiting for that letter to come through now to mark satisfied.

I think that they were all registered in 2006.