Ccj Mortgage etc, advice needed.

goldenbo

Hi, my situation is this...

Moved back with parent a while back to save that last bit for deposit (40g) on first-time mortgage.

Problem is I have three ccjs, all satisfied, and none within the last 12 months. Girlfriend has perfect credit and is aware that my past record my result in trouble getting a mortgage.

What would be our best option from this stage, as deposit (for 230-250g mortgage) is now all there? We do not want to apply, only to be refused and then have to wait another 3months before we can go in again or woteva, also there is the snag of the credit search on report also.

should just add, combined annual income is 60g.

Any help asap is greatly appreciated as we're totally new to this scene.

luckyfool

If you have 3 ccjs then you are going to struggle. If they were all over 2 yrs old and satisfied then you might be able to look at 80% mortgages, with a 20% deposit, but that will either require a bigger deposit, or looking at cheaper properties. i.e. £40k is 20% of £200k, meaning you could borrow £160k on £200k. You also need to factor in costs for legals and valuation of around £1,000-£1,200 and any moving costs. This is assuming you are both first time buyers and are eligible for the current stamp duty holiday for purchases under £250k for first time buyers.

goldenbo

thanx for the reply.

all bar one is over 3yrs old, the other is for just £225 and under dispute, but all satisfied. we r both 1st time buyers yes, and have indeed factored in those costs.

I saw a quote of 5.69% as a premium, which would allow interest only...so allow more time for report to repair itselt etc. it's either that i guess, or we go for a guarantor mortgage, which is poss', but it would have to be parent who is over the age of 60!?

luckyfool

A guarantor doesn't really solve the adverse credit/credit score issue. Lenders typically want a guarantor for affordability reasons (i.e. if the income is not quite there now, but will be in the future), they generally are not interested in taking on a guarantor to somehow make up for bad credit with the main applicants.

If the £225 is in the last 2 yrs I think you are probably going to struggle at more than 70-75%. 5.69% sounds like Kensington at 80%, they will not touch it with a £225 ccj in the last 2 yrs at anything over 70%.

goldenbo

indeed it was, and an IFA was very hopeful they would pick it up for more around 25% deposit. that way we could interest only until the ccj drops off my record for more than 2yrs...then re-mort for better rate. that's the theory.

the gaurantor was put forward as an idea to do app' on the perfect-credit half of partnership...and was aware of income boost etc, but believed one was also available for a set period, again until my record looked steadier etc...tho, again, that's never ideal is it?!

past that, im running out of options?!

luckyfool

The guarantor idea might have legs depending on the perfect credit half of the partnerships income and job type. i.e. If they are a junior Doctor/Solicitor where there is scope for income to increase relatively quickly so they could afford the whole mortgage in the foreseeable future then a traditional guarantor route might work, again subject to affordability on the guarantor (which will depend on their age, income, and credit commitments). Sounds like a bit of a headache to me, and if your broker/ifa can place it he/she will be earning their money.

goldenbo

Got another meeting on fri, so will take forward advice. many thanks and i'll let you know how we get on.