1st Time buyers, 1 with fantastic credit history, 1 without.

DeanR83

Afternoon

My wife and I are currently renting and possibly looking at purchasing a house but wanted to get some advice.

She has a fantastic credit history. No late payments on credit cards or loans or anything.

I on the other hand have a terrible one. Late payments on a loan, bills and CCJ for council tax approx 2 years ago. Now back on track with no late payments or anything for the last 2 years.

Is there any point in even trying for a mortgage in the current market with a bad credit history? Would it just get refused point blank? Or would my partner credit history balance things out?

Thanks for any help or advice.

DVardysShadow

CCJs are not given for Council Tax, so the judgement against you will not appear on your credit record.

kingstreet

How big's your deposit?

25% deposit or more and you might get a deal if your adverse is 2+ years old.

abankerbutnotafatcat

If you encounter (or think you may encounter) any difficulties speak to a mortgage broker. Being fairly au fait with the financial world I would never normally use an intermediatary but as a contract employee I knew not all banks would lend to me so I approached a broker to ease the process. He knew which lenders to approach straight away - it's what they are there for.

FireWyrm

My advice would also be to speak to a broker. There are plenty of 'indy's out there who dont charge you and earn their money from the mortgage companies. Some even have access to mortgages that are not available to normal punters on the highstreet. With regard to adverse credit, all may not be lost. I have a very good credit rating and had (up until I gave it to the solicitor) a good 15% deposit for a new house. My husband is an absolute idiot when it comes to money and managed to get himself so badly in debt that no-one will even give him a decent bank account. I went to a mortgage broker and discussed the options and we figured out that I could go into the mortgage myself with the deposit and completely leave him out of it. Although he will be living at the property, the Halifax seem ok with this. I had a slight blip in January and again in March where I busted my overdraft, but neither of those things seemed to cause an issue with the mortgage. It seems that some selected companies go more by affordability than credit rating. Whereas Barclays wouldnt touch me with a barge pole, Halifax seemed far more laid back and touch wood, there are no issues so far. My interest rate on a 2 year fix for £121K is 4.68%. Not wonderful, but not bad either.

DeanR83

Afternoon

Thanks for the info I'll have to try and arrange something with a broker and see what can be done.

Many Thanks

handytips

DVardysShadow wrote: »

CCJs are not given for Council Tax, so the judgement against you will not appear on your credit record.

Since when ? The largest amount of CCJ's are laid by local authorities for non payment of council tax, why comment if you do not know the correct answer ?

For the OP can you get the mortgage in one name, is there enough income to do this ?

DeanR83

She could get a mortgage in her own name but it wouldn't be any where near the amount we need to find a house in a good location.

Or could she apply for the mortgage and then add my income and other earnings or income?

kingstreet

handytips wrote: »

Since when ? The largest amount of CCJ's are laid by local authorities for non payment of council tax, why comment if you do not know the correct answer ?

You're thinking of a liability order issued by a magistrates court. Council tax issues aren't dealt with at county court.

SUMMONS – To obtain a LIABILITY ORDER the local authority must apply to a magistrate’s court for a summons to be issued to the debtor. The summons instructs the debtor to appear at magistrate’s court and explain why they have not paid.

LIABILITY ORDER – A LIABILITY ORDER may be granted to the local authority that giving them the power to:
a. Obtain financial information about the debtor and therefore assess the best means of recovery action
b. Make an attachment of earnings
c. Make an attachment order on an elected members allowances
d. Apply to the DWP for deductions to be made from the debtors Income Support, JSA or Pension Credit
e. Use bailiffs to seize the debtors goods (also known as distress)
f. Apply for a charging order against the dwelling in respect of which the debtors liability arose
g. Apply to bankrupt the debtor (if they are an individual) or to wind up the company (if the debtor is a corporate body)

DVardysShadow

handytips wrote: »

Since when ? The largest amount of CCJ's are laid by local authorities for non payment of council tax, why comment if you do not know the correct answer ?

Since forever. Council Tax is only dealt with by Liability Orders issued by Magistrates. County Court Judgements are never issued by Magistrates. And only County Court Judgements are listed as CCJ's on credit records.

Indeed, why comment, if you don't know the correct answer? Are you big enough to apologise? :rotfl::rotfl::rotfl:

DeanR83

Either way I've got bad credit history.