5 year old CCJ = rejected mortgage

Laoneill

I've just had to do a credit check on myself after an "agreement in principle" applicationwas referred, and found out that there was a CCJ against me from a dispute with a Uni landlord in 2007 (the broke the clauses of the contract, we moved out rather than staying in the hell-hole). All their correspondance, by the looks of things, were send to an old address so I was none the wiser until last night. It is registered in mine and my Dad's name - he was paying my rent for me at the time.

I have now had a mortgage rejected- most probably due to this, as there is only one other late (2 days) payment. This now means we are probably going to lose our dream first house together so needless to say I am totally gutted.

Does anyone know how long it would then take to clear or change my credit rating if we pay it off or successfully dispute it? Ideally it would be immediate so we don't lose the house but I fear this is foolish optimism.

Any other advice is welcomed!!!
Please don't offer "usefiul" comments about how I should have done this before offering on the house.

Dave_Ham

Hi there,

You need to get your full credit score reports to a whole of market mortgage broker.

They will be able to look through and understand the rating and be able to select a lender that is more understanding.

You need to stop approaching banks directly and getting refused as this could further damage your credit rating.

It is hard to give further advice as obviously we cant and wont get the full information you would from a full fact find.

I would not rule out your dream house just yet, but you will obviously need to act quickly.

How much was the CCJ for?

Thrugelmir

Have you settled the CCJ?

ACG

As dave says, how much is the CCJ for?

it is possible to find lenders that will accept it depending on how much it is for. If you were to pay it off and get a letter from them to say it had been cleared you might be able to get the decision overturned. If you were dispute it, it could take weeks/months.

Laoneill

The ccj was for just over £1000, and hasn't been paid off, both through not knowing it even existed until Friday, and matter of principle! We were advised at the time that the matter was closed (quite the opposite to "oh actually we're taking you to court")
Seeing as it will drop off my credit record next jan (6years passed), will this still affect future lending?

ACG

It will yes, just because its off your credit file it will still affect it, i had this issue last week with a lender.

I THINK the coventry might be worth speaking to, i think they allow CCJs for £1500. You might be best speaking with an advisor though as thats just 1 company off the top of my head that might accept you. Get a broker onto it and they can do the research for you.

GMS

How much did you apply for and what is the purchase price?

Which lender rejected you?

Conrad

The law is very specific on the matter of defendants claiming ignorance of a matter, for example because they've changed address. The responsibility wrests with you as the defendant and there is no duty on the part of the claimant other than to use the 'last known address' to serve judgement.

Given it's a sizable sum and unsatisfied for several years, you will have a hard time convincing an underwriter to lend to you unfortunately.

Also bare in mind lenders such as Santander / Abbey can no longer sell on mortgage accounts where the applicant has any kind of adverse credit history, because the investors that buy those mortgages from Banks, want zero adverse credit in thier portfolio.

All you can do is try and raise a mortgage in anothers name, just as a sibling or parent. Kensington is one lender that might be able to consider this but last time I checked you needed a 40% deposit and they had run out of funds to lend (again because investors don't want to buy such cases from lenders).

In which case, clear the ccj now, and slowly rebuild your credit map.

MagicCats

I'd personally seek assistance about the legality of the CCJ in the first instance. I know a few people over on Consumer Action Group (Google it) who are quite insightful on these things. It would be worth asking for some advice there first before doing anything.

I'm also of the understanding that a CCJ, if not paid within 6 years, and the creditor the judge ruled in favour of does not pursue you, then it's statute barred. CCJ's do drop off your file at the 6 year point, and off the registry from what I've read. Again however seek advice from those really in the know