Which lender's accept one CCJ? advice needed

mrsbez_2

Hi,

My husband is self employed, his net profit about £25500.

I am a housewife with no income but have a CCJ of £1311 which was served against me in Feb 2002 and was paid off in Aug 2002. This was due to a blip at the time and i was late with a couple of payments.

When we bought our house together last year i was advised not to go onto the mortgage as this would affect my husbands ability to borrow.

He has a mortgage with C & G of around £110,000 in his sole name.

We are now expanding our family and we may need to move for extra space. We would therefore need to increase our mortgage by 10-15k.

We would both really like to have a joint mortgage.

Does anyone know of a mortgage company (with decent rates) that will lend in our situation. My husband has a very good credit rating and we rely on his income. Or if we stay with C & G, would they be able to add me to the existing mortgage?????

also is it worth looking at self certification mortgages?

Thank you

summerday

Hi there,

My Mum had a CCJ when she had to re-mortgage and she saw a financial advisor who was able to tell her people who would lend to her, and the most competitive ones. Maybe it is worth you seing an independent advisor too. The lenders who agreed to her loan were all at higher interest rates though as a CCJ means you are seen as a more 'risky' person to lend to.

Tell me to mind my own business if you like, but the mortgage you already have seems quite large to be based on just your husband's income of £25k- it is already more than 4x his income. Bear in mind also that with the CCJ you might have to pay a higher interest rate due to the (perceived) increased risk, and if you increase the amount further still do consider how you would cope if your husbands profit wasn't so good this year or if interest rates rose again. Just wouldn't want you to get into a sticky situation and risk losing the house.

Best of luck,
Sarah

mrsbez_2

Hi Saraht,

Thank you for your concern, as with all self employed people, his income fluctuates and is greatly reduced by the accountant for tax purposes. we seem to be doing ok at the moment, but as far as a mortgage is concerned we have to use the 'net profit' figure.

But yes, we would not want to increase our mortgage too much. Even if we don't move, it would be nice to have my name on the mortgage aswell!!

AndrewSmith

mrsbez wrote:

Hi,

My husband is self employed, his net profit about £25500.

I am a housewife with no income but have a CCJ of £1311 which was served against me in Feb 2002 and was paid off in Aug 2002. This was due to a blip at the time and i was late with a couple of payments.

When we bought our house together last year i was advised not to go onto the mortgage as this would affect my husbands ability to borrow.

He has a mortgage with C & G of around £110,000 in his sole name.

We are now expanding our family and we may need to move for extra space. We would therefore need to increase our mortgage by 10-15k.

We would both really like to have a joint mortgage.

Does anyone know of a mortgage company (with decent rates) that will lend in our situation. My husband has a very good credit rating and we rely on his income. Or if we stay with C & G, would they be able to add me to the existing mortgage?????

also is it worth looking at self certification mortgages?

Thank you

Hi,

This is an interesting scenario and raises some very salient points.

There are a large number of high street lenders who will accept you for a mortgage with a CCJ that was paid off in 2002, as long as everything else in your credit history is good. It will depend on the results of a credit search and credit scoring carried out by the lender.

Adding you to the mortgage should not cause too many problems either as long as all is well on the credit search etc.

Regarding how much you can borrow, this will also depend on the credit score and the deposit that you have available to put down on the new property. 10% plus would get you the best available rates.

If you were to consider self certification (if appropriate) then to get the best rates you would be looking at a deposit of 15% or more. There are lenders who will offer self certify mortgages with 5 or 10% deposits but the interest rates are not the best available.

It is worth having a chat to the C&G to see what they will offer you and regarding adding you to the mortgage, then I would suggest comparing their results against others on the marketplace.

Andy

mrsbez_2

We have a deposit of about 35%.

And all is well on my credit file since then, it is just the CCJ that causes a problem.

C & G seemed to be happy with me on the mortgage, it is just that the amount they lent us was greatly reduced by me being on there. Or would it be because they were using our joint income (as i don't earn anything), to multiply rather than a single income?

It's started me thinking now!! My husbands earnings are such that i think a self certification would be more beneficial, we do not want to stretch ourselves but it just may give us that extra little bit.

AndrewSmith

It is more than likely because they have tightened up their criteria over recent years.

Unlike a few years ago when the local branch manager had autonomy over the lending decision, this power is no longer afforded them, and is based mainly on credit score.

If looking at self certify make sure that you are not charged over the odds for the setup of the mortgage.

Andy