Question about defaults, CCJs and 6 year credit file thingy..

maddysaver

I'm hoping someone may know the answer to this question.

Bit of background first:
In 2005 I began a DMP which after a while I took over myself and now have it all under control and aside from one large debt of around £15,000 which has a CCJ (listed in Aug 2005) I have nearly paid off the others.

We have managed to get a remortgage to a reasonable rate on our current house whilst on the DMP, with a sub-prime (ish) lender which helped lower our payments when a special offer term ran out. But we really want to move house eventually.

However we want a better rate really and would prefer a mainstream lender. We have decided to save, save, save and build up a deposit over the next two years with the idea of getting a new mortgage and moving house in 2011 when I believe the 6 years will be up and the defaults and CCJ will 'drop off the file'. Although I think realistically we will still be paying the CCJ off for a bit after that.

My questions (finally) are.... firstly am I right in the belief that CCJs and defaults 'drop off' my credit file after 6 years (and is it exactly - to the month - 6 years after they are first registered)?
If this is the case do you think it's likely I would be accepted for a mainstream mortgage (or any reasonable mortgage) fairly soon after that or is there a 'waiting period'? I have got a catalogue with a small balance which I pay regularly and on time. I also have a Capital One CC which again has a weeny balance and is paid on time (I only got it to try and improve my rating really) and my husband has a pre-paid CC. We are on the electoral roll etc.

Is the fact that we're still paying the CCJ an issue even though it won't be showing on the credit file?

Thanks in advance

bradfordlad

Hi maddysaver,

I may be wrong, but I'm sure that if the CCJ is still outstanding (i.e. not satisfied) then it will show on your CRA file for 6 years after it is satisfied.

In a previous life I was a mortgage broker, and I know that an unsatisfied CCJ was a bit of a problem, and thats when they were throwing money around like idiots!

I know the internal lending credit score limits have been raised quite substantially over the last few months, so I would guess that until the CCJ is satisfied you may struggle.

Sorry to be blunt - and I hope I'm wrong! Chelsea BS used to be good with low vaklue CCJ's if that helps?

bradfordlad

maddysaver

Oh that's a bit deflating but thank you for the reply. It could be a long time before it gets satisfied