Remortgage for previous adverse-credit case

pentreath_2

Hi,

I'm posting on behalf of a relative of mine who got into a bit of financial bovver.

His mortgage is currently around £120k, and it's a three-year deal expiring this October (we're planning ahead here). The fixed rate he's on is nearly 8%. When he took it out his credit record was saddled with a CCJ and a few defaults. The six-year anniversary of the CCJ is conveniently this October. The most recent of the defaults has its six-year period the following March.

So a couple of questions for the experts:

1) By March 2012 when the youngest default is 6 years old does he have a clean sheet so far as lenders are concerned? Will he be treated as a prime lender again? I noticed that his previous mortgage application form asked questions like "Have you ever had a CCJ?." Is it OK to answer that question "No"? It seems to me that that's a lie, but once the CCJ has dropped off the file is it OK to conceal it (in which case why don't they ask about your history for the last six years only)?

2) He's keen to sort out a remortgage as soon as possible, ideally as soon as the CCJ expires in October. My theory is that it is worth waiting the extra few months for the default to expire as well. Is this right?

3) When is the earliest he should look for a new mortgage? Is it OK to look while the black marks are still on his credit file, because the lenders will be able to see that they are about to drop off? Or should we wait until his credit search is all clear?

Thanks for any help. He's chomping at the bit hoping to get down to interest rate around half the one which he's been wrestling with for the last three years.

GMS

pentreath wrote: »

Hi,

I'm posting on behalf of a relative of mine who got into a bit of financial bovver.

His mortgage is currently around £120k, and it's a three-year deal expiring this October (we're planning ahead here). The fixed rate he's on is nearly 8%. When he took it out his credit record was saddled with a CCJ and a few defaults. The six-year anniversary of the CCJ is conveniently this October. The most recent of the defaults has its six-year period the following March.

So a couple of questions for the experts:

1) By March 2012 when the youngest default is 6 years old does he have a clean sheet so far as lenders are concerned? Will he be treated as a prime lender again? I noticed that his previous mortgage application form asked questions like "Have you ever had a CCJ?." Is it OK to answer that question "No"? It seems to me that that's a lie, but once the CCJ has dropped off the file is it OK to conceal it (in which case why don't they ask about your history for the last six years only)?

2) He's keen to sort out a remortgage as soon as possible, ideally as soon as the CCJ expires in October. My theory is that it is worth waiting the extra few months for the default to expire as well. Is this right?

3) When is the earliest he should look for a new mortgage? Is it OK to look while the black marks are still on his credit file, because the lenders will be able to see that they are about to drop off? Or should we wait until his credit search is all clear?

Thanks for any help. He's chomping at the bit hoping to get down to interest rate around half the one which he's been wrestling with for the last three years.

1) 'Have you ever'? Answer is yes

2) Depends on the amount and time of the CCJ.

3) Can look whenever your friend wants to. Do not apply until ready. A broker would be able to look at the options and time scales

pentreath_2

GMS wrote: »

1) 'Have you ever'? Answer is yes

Thanks GMS.

So he never does have a clean sheet again, even after six years and must declare the CCJ indefintely!

The CCJ was in the region of £25,000 and will be pretty much exactly six years old when he comes to applying for another mortgage. He paid it off not long after it was issued.