Bad Credit - Good Salary

funkbandit

I need some advice if possible. My partner and I both have a bad credit history I got into debt in my early twenties as did he. He is a discharged bankrupt and I still have CCJs on my credit file. My mother has given us £30'000 towards a house but it looks as if the chances of us ever getting a mortage are slim. Combined we earn in excess of £70'000 a year and we have no children. It seems so unfair that we will be hindered for years to come because of what lays on your credit history. Any advice?

handytips

If the Adverse is Historic then there may be a few products available to you however you would need between 25-35% deposit according as to how the lender views you. Good luck but its not impossible by any means. You would need the services of a broker to facilitate your needs as there are no High Street lenders available to you. The rates are quite competetive though.

Leon_W

I'm not too sure why you think it unfair ?

The reality is that you have a history of not paying people what they are owed. Your creditors would probably think it unfair that you are both on good salaries yet they remain out of pocket.

OK, sometimes these things are unavoidable, sometimes through no fault of your own, but you have to agree that it will take some time to re-prove your credit worthiness in the eyes of someone you potentially want to borrow a large amount of money from.

neverdespairgirl

funkbandit wrote: »

It seems so unfair that we will be hindered for years to come because of what lays on your credit history. Any advice?

Someone lending you money wants to know the chances of them getting it back.

Your credit record shows that you're a bad bet.

holly_hobby

You have a decent joint income - I presume when you obtained the adverse data your circumstances where somewhat different. (i.e it was a case of can't pay .. not won't pay)

So you have the income (and a good deposit ear marked to buy a property), so to that end, and if you want to be on the property ladder sooner rather than later, you really should satisfy your CCJs, and have your credit file marked accordingly. This shows a willingness on your part to remedy the financial problems you earlier found yourselves in - and would help any lender see that you DO have a responsible attitude to finance, in repaying your creditors what they are owed, now you are in a stable financial position to do so.

As a side issue - it is an assumption that CCJs automatically "fall off" your credit record after 6 yrs - this is true, BUT and its a big BUT - the owner of the debt (which may not be the original creditor) may apply to the courts to have the court order re-registered. (this doesn't happen all the time, but the owner of the debt does have the capability to do this), whereby it will remain on your file until satisfied/expired. Which is why I think in your situation, I would satisfy the os CCJs you have whilst you obviously have the income/capital to do so.

This can also be said of the bankruptcy - although discharged - it would again greatly help your situation and chances of someone accepting you, if your other half also satisfied the bankruptcy. (although there are lenders who will consider just a dischaged bankrupt - but not in conjunction with unsatisfied CCJs too, as you have found out).

Again I suggest this for the reasons given for the CCJ, in so much that you want the broadest choice of potential lenders whose criteria you may fit, and to clearly demonstrate to any potential creditor that you do have a responsible attitude to financial commitments, and that your historical credit problems are just that historical (one hopes !)- and a situation which you have since remedied in a responsible manner.

Before the banking collapse, there were many adverse credit lenders, who would consider unsatisfied ccjs, defaults & ex bankrupts (unsatisfied) - the collapse saw a vast end to such products & lenders as one might expect - and a return to more conservative and responsible lending practices.

This advice make take up your capital/savings ear marked for your house pch, and you may have a delay in purchasing whilst you re-build them, but its the only positive action I can recommend to have a hope of achieving a mortgage in todays market, given the plight you find yourselves in.

Hope this helps

Holly