CCJ/DMP/Mortgage

Spudge

Is it possible?

My partner owns a property which we rent out currently due to the fact it is too small for us. We are putting it up for sale this month. He managed to culminate £30k of debt of which we are now paying off through a DMP. He managed to get a CCJ from one of his debts and a charging order against the property. Once it's sold the majortiy, if not all the equity will go to this creditor. This will then rid him of the CCJ.

My questions to you are:

1) How long after CCJ has been cleared will it remain on his record/credit file? Will he always have to declare this CCJ even years later?

2) How long after the DMP will it be before he could have good 'credit' rating again or will the fact he has been on a DMP damage him for life?

3) The liklihood of a mortgage. I am currently on a part-time wage as we have young chlidren, I don't earn a great deal. Will it be likley we'll be able to get a morttgage in the future after his DMP? A deposit won't be a problem, I am concerned about the probablity he'll ever be approved for another?

One option I had thought of is that once I return to a full time wage (hopefully about 28k) that I could get a shared ownership mortgage with a view to buy the rented part back and add him onto it. Is this naive? Or will be able to apply in the future?

I do note that a period of "six years" is often mentioned with regards to credit rating but when is the six years from either when the DMP started or when the DMP finished? Also, the same question wqith regards to the CCJ.

Thanks in advance for any help.

A fretting Mum,

RAS

It is six years from when the CCJ was granted.

Spudge

And when you say "it" what do you mean?

For instance, six years from the date the CCJ has been granted - where does that put him/I? Will it no longer affect his credit rating?

DarkConvict

1) 6 years from date the CCJ was granted. However if you have a charging order i believe this shows on the credit file to, so you will have to wait 6 years from the date of the charging order, for the CO to disappear. So if the CCJ was granted on 01/01/2007, and a CO on 01/01/2009.
The CCJ comes off in 01/01/2013 and the CO in 01/01/2015. Court orders have the greater affect on credit rating just below insolvency actions, bankcruptcy, IVA or DRO.

2) Everything lasts 6 years, but 3 years for payment history. Generally since you get defaults, a DMP will last atleast 6 years. Although once debts are all paid you will have to view the reports to see what it is like. Say it takes 9 years to pay it all off. After 9 years the defaults will not be showing, and in all likely hood you have made greater payments on the debts towards the end of the DMP meaning payment history is better, so perhaps 1-2 years after a long DMP.
A DMP is an informal arrange, and does not show on the credit file. it is the affects of the reduced payments mentioned above that do appear.

3) The bank will keep a history on them if they had debts with them, and some banks do seem to share data other than via the credit report. However once the file is actually clean I do not see there been much of an issue other than income. As the amount they lend will depend on the income the applicants are bringing in. If you only earn £15,000. Then i doubt you could get a mortgage exceeding £60,000.

DanFord29

I got into a lot of debt when i was 21/22 credit cards, store cards, loans etc, the situation came to a head when my re-payments were more than my monthly income. The only alternative avail to me at the time was to go through a debt management company called Baines & Ernst, i started using them in Nov 2004 and i continued to make monthly payments until Aug 2008 when i had saved enough money to settle the debts in full. Since then i have taken no credit out. I recently started looking for a house but i was declined a mortgage becuase of my credit history.

I registered with Experian and discovered 4 defaults from various creditors and also a ccj, this was the first time i even knew i had these things affecting my credit.

Since then i have managed to get the CCJ set aside by a judge and that has now been removed from my record, and the defaults all show as satified since 2008, however i still fail the credit application for a mortgage?

I have been advised that the defaults do not get taken into account? Im at a loss what to do next, i fell like i have been miss-represented by the debt managemnt company as they insisted they would handle all the creditors and act as a go-between, they insisted all mail from creditors be sent directly to them, and the defaults were all issued at the end/beginning of 2005/06 after i had been makingm regular monthly payments to Baines & Ernst?

Im now at a loss of what i can do, does the fact i ave taken no credit out since paying the debts have a negative effect on my credit? And if so what happens if i apply for a credit card and gte declined that will be another foot print on my credit file.

PLEASE HELP !!!!!!!

Spudge

DarkConvict, thanks for your reply. It left me feeling positive.

... I then read DanFord's post and am feeling negative again. Any ideas as to why you could still be refused a motage|

Thrugelmir

DanFord29 wrote: »

I have been advised that the defaults do not get taken into account? Im at a loss what to do next, i fell like i have been miss-represented by the debt managemnt company as they insisted they would handle all the creditors and act as a go-between, they insisted all mail from creditors be sent directly to them, and the defaults were all issued at the end/beginning of 2005/06 after i had been makingm regular monthly payments to Baines & Ernst?

Market conditions have changed in the past year or so.

Lenders can choose their customers.

Try a building society for a mortgage as they offer a more personalised service. Though you may need to live in their catchment area and save with them first.

Thrugelmir

Spudge wrote: »

A deposit won't be a problem,

Then clear the DMP. The situation is in your hands no one elses.

dancingfairy

This article of Martin's may of use regarding credit ratings:

http://www.moneysavingexpert.com/loans/credit-rating-credit-score

With regards to Dan Ford's issues:
1) it is likely that the defaults are on your credit record? which could be causing you problems - they would have been put on as you were not meeting your minimum agreed payments as per your credit agreement. The companies have a set time to issue default notices from the time you first miss your contractural payments - you need to look at whether these were issued correctly.
2) no further credit does not demonstrate that you have since learned how to manage your access to credit
3) there are other things that affect your credit rating - ie whether you are on the electoral role , I think even how long you have been at an adress for figures as well. Your credit rating is also one part of the picture - the bank will look at what type of customers they want to attract and what your circusmtances are ie your deposit, income etc etc so credit rating, while although a very significant part is not the only relevant thing here.
df