New Mortgage, old CCJ

Angry_Bear

Hi I’m looking for a mortgage with my partner, but he has some historical credit problems. We don't really know if we can get one, or what sort of rate we might expect. Our situation is as follows:

• We have 25% deposit
• We currently rent and have for several years, but my OH has owned a house previously so we’re not eligible for most FTB schemes, I think some lenders will consider us as FTBs.
• My OH has two CCJs lodged in May 2008 (both for around 3k). He didn’t find out about them for 2 years as we’d moved house but they were satisfied as soon as he knew (2010). Apparently there isn’t sufficient grounds to get them set aside.
• Other than those, we both have clean credit histories, a credit card each – paid in full every month.
• We are on the electoral register.
• We add savings to our deposit pot of about 1000 per month.
• We’re both full time employed, and have been with our respective employers since we moved to the area – just over 1 year ago.
• I have a salary of 32k, and OH has 23k – with regular overtime adding up to a minimum of 3k per year.
• We have 62.5k deposit and are looking at houses for about 250k.
• We have very few outgoings, no children, no pets, no smoking, no expensive hobbies etc. We don’t have any outstanding debts and I think we would pass most affordability criteria.
• We have had a couple of loans previously but they’re all paid off now with no missed payments or defaults.
• We’re hoping to start looking in earnest in about June (just over 4 years after the CCJs were lodged).

I was intending to try HSBC as we bank with them so it's easy for them to see how much we are putting into savings, but I gather that they are one of the strictest lenders just now so I should rule them out. I've also heard that the Post Office don’t look back over 3 years, but I'm not sure if I believe that.


I have no problem paying for a good Mortgage Broker, but to be honest I don’t know how to identify a “good” one and I’m very wary about being taken for a ride. I also don't know what a reasonable sub to pay for a good broker would be.


Would love a little advice if anyone has any

GMS

HSBC and Post Office will almost certainly reject due to the previous CCJ's.

A beoker is definitely the way to go here. You have a good deposit and income looks ok on the face of it.

Keeping the property purchase price to below 250k will keep stamp duty down, 1% up to 250k, 3% over.

With your proposed borrowing you should find a broker willing to help for little or no fee.

Get the fees agreed up front and go from there. There are lenders who wil be sympathetic to historical credit problems especially when you can demonstrate you have solved them and learnt from the experiences.

Try speaking to HSBC with the scenario. Ask if they would consider the CCJ's. Do it without a credit check being done initially

Angry_Bear

Thanks. That's roughly what I expected, and suggests much better than my worst-case scenario of having to rent for another 2 years .

Dave_Ham

From what you have posted, no way do you need to consider renting for any longer.

If someone tells you otherwise (subject to this all being fact) then just find a better broker..

HSBC certainly not always that flexible, although have seen Post Office be slightly flexible.

As stated though (and I am biased) can't beat a decent whole of market broker.



Good luck

Thrugelmir

Angry_Bear wrote: »

[*]We’re hoping to start looking in earnest in about June (just over 4 years after the CCJs were lodged).
[/LIST]

Will remain on your credit record for 6 years from date of satisfaction. Date of lodgement has no bearing.

Thrugelmir

Dave_Ham wrote: »

From what you have posted, no way do you need to consider renting for any longer.

If someone tells you otherwise (subject to this all being fact) then just find a better broker..

Possibly there'll need to be an explanation as to why £6k of debt was "forgotten" for over 2 years.

Angry_Bear

Will remain on your credit record for 6 years from date of satisfaction. Date of lodgement has no bearing.

Are you certain of this? It seems like a terrible way of penalising people who make the effort to satisfy their debt!

Thrugelmir wrote: »

Possibly there'll need to be an explanation as to why £6k of debt was "forgotten" for over 2 years.

Oh, and it wasn't "forgotten" debt - it came about due to two statutory repairs on an house in a partially council owned block. Unfortunately my OH wasn't living in the house and knew nothing about this - in my mind it's incredibly unfair, but apparently within the law so what're you going to do.

Dave_Ham

I understand the sentiment here, although given the circumstances being accurate in the first post there are still lenders that would be happy with this.

I stand by my original post and that these circumstances are mortgageable.

Clearly its not ideal and not advocating this as a rule, but feel there would be a solution here.

Thrugelmir

Angry_Bear wrote: »

Oh, and it wasn't "forgotten" debt - it came about due to two statutory repairs on an house in a partially council owned block. Unfortunately my OH wasn't living in the house and knew nothing about this - in my mind it's incredibly unfair, but apparently within the law so what're you going to do.

By the time court action is taken. All avenues have been fully explored to make contact with the debtor. A judge will need to be assured of this fact before issuing a CCJ where no defence has been made.

A forwarding address for named mail is easy enough to set up.

Angry_Bear

And the fact that he hadn't made sure his details were updated is the reason we can't get it set aside.

But your implication was that there was a debt that my OH just wandered away from. There wasn't, something arose that he was liable for (but had no knowledge of) and he couldn't be found easily. I have no doubt that the council believed he was just ignoring them rather than unaware.

However, ignorance and a stupid mistake is different to the deliberate debt dodging you seemed to be implying. It doesn't make a difference to the question of a mortgage ... but it does offend me!

Thrugelmir

Angry_Bear wrote: »

But your implication was that there was a debt that my OH just wandered away from.

At a point their has to be a degree of personal responsibility for ones own actions. That's my point. Not being judgemental.