Need a mortgage but have old debts :(

markus250

Hi all,

I'm living with my girlfriend in rented accommodation and we have done so for around 10years. We're now at the point where we really wanna get off the rented market and look into buying something for ourselves.

We would hope that our landlord 'may' sell the house we're in to us and just as a guide other properties on our road are selling at present for around £58-60k and ours is a bit run down and decor needs an update etc but is all structurally sound.

The only problem is that a good few years ago i had credit cards and loans etc and got myself into a mess...hence now i have two ccjs and another card that i am paying back on a mutual agreement with the lender (which is almost paid off).

My girlfriend has never been in debt and always pays things bang on time...as i do now (i was young and stupid back then!)

As i'm now 33, time is ticking on to get a mortgage and we were thinking something low price like the property we're in would be a good start. My existing debts really worry me though such as being able to get a mortgage, where the best place to look would be and possible increased interest rate due to me being a high risk etc.

I've ordered the free mortgages for beginners booklet but i'm here for any information, help or places to look at etc as i can!

Help?!

Many thanks (and sorry for the essay!)
Markus:)

Annisele

How much do you owe on your existing debts? How much deposit do you have? How much do you earn?

GMS

With adverse credit in place you need to apply to the correct lender. Do not apply randomly as you will harm credit score.

Do you have a deposit saved? You will need 20% most likely

soolin

The one thing my son and his OH found recently when looking for a mortgage was the percentage of deposit they could put down. They bought a place in the end at £115,000 and had to put down £22,000 deposit. Even then due to their age (22 and 24) they had to go to a specialist broker and there is a slight premium on their interest rate.

markus250

Thanks for the replies so far.

At present i'm working part time on approx 16k per year.

My partner is part time on approx 14k per year.

I have a generous grandad who is willing to pay our deposit...he understands up to 20% may be payable.

I have just registered for my credit report so i'm just going through all that at present...i still have 1 ccj on there that has been fully paid off and should be removed so i need to get onto that for starters!

My credit score shows up as 'fair' so is not as bad as i first thought. Like i say, a lot of information for me to read through, sort old paperwork out and check numbers and amounts match up on the report etc.

Thanks so far!

GMS

When was the CCJ put in place and for how much?

There are lenders who will consider applicants with adverse credit in the past.

You will need to speak to a broker.

Get statutory credit reports from Experian and Equifax. £2 each. Credit score you have is pretty much meaningless as lenders use their own.

markus250

I have 2 ccjs, both are around 4k (don't know exact figure without looking)

I do have a 3rd one on their which was paid off ages ago and according to the credit report can now be removed but i have to contact the court about that for some sort of certificate?!

Both the ccjs that i still need to pay were put in place one in august 2005 and the other in june 2006.

GMS

CCJs will remain on file for 6 years after which time they will be removed automatically.

The certificate you need will probably be a Certificate of Satisfaction which will cost £15 I think and allow the CCJ to be shown as satisfied on the credit report.

Your CCJs are over 3 years old so lenders would consider your application.

markus250

Thats the one - certificate of satisfaction. Couldn't remember what it was called. I must contact the court and get that sorted then.

With ccjs i thought that once it was paid off in full it was then a further 6years before being able to apply for credit etc? If its as you say then thats a bit of good news.

Many thanks for the help and advice so far. Been a bit down recently with it all spinning round my head!

GMS

CCJs are removed 6 years from date of judgement.

If they are paid in full within 30 days of the judgement then they will not show on the report at all.

If paid in full after 30 days they will show on the report but can be marked as satisfied once a Certificate of Satisfaction has been applied for.

You can apply for credit with a CCJ but it will affect credit scoring at best, or at worst mean outside of criteria and a decline, depending upon lender. Soem specialist lenders will allow old CCJs and do not use credit scoring, or not have as tight a pass score.

You should speak to a broker. It is vital you apply to the correct lender rather than applying for the best rates. Declines will hinder each application further.

sparky23

Hello - I had a CCJ removed last month and that was the 6 year mark. Just vanished from the report.
I also have adverse credit and that will be 6 year old in 2012 and this will also come off the file wheather its cleared or not.

I phoned Experian direct and this is the info they gave me. Its worth signing up for the free trial and caling them to discuss what is showing on your report