Need some advice, help please!

sindy1989

Me & my boyfriend were renting a flat but decided to move back to our parents house so that we could save for a deposit for a mortgage. We opened a nationwide save to buy account and tried to switch our current accounts over to nationwide as well. Mine was absolutely fine & they gave me a credit card with a limit of £1700, which I have been using carefully to build up my credit rating. My boyfriend wasn't allowed a current account with them due to bad credit, so we went home & logged him on to experian, where we found out he has an awful credit rating! Two CCJs against him from around 2007 & another unpaid bill from around the same time. He paid them off straightaway (this was around august 2011). We are still saving and have so far managed to put away about £4,000. I am worried that despite the fact those CCJ's have been paid off we still don't stand a very good chance of getting a mortgage. I've asked my boyfriend to apply for a credit card for people with bad credit to build up his credit rating, but he says we don't need to because his sisters boyfriend (who is in the property business) knows someone who will help us "highlight all the good points & hide all the bad points". Does anyone have any experience of anything like this? We are both on relatively low wages but work full time, & looking to borrow about £90,000 from the bank with a deposit of £10,000. Do we have a chance or would we be better off renting?
Any advice would be massively appreciated, thanks in advance!
Sindy :-)

Thrugelmir

When did you open save to buy account?

Don't bother with any new credit cards.

sindy1989

We opened it the beginning of august last year.
Why do you say not to bother with credit cards - I thought they were a way of getting your credit rating up?
Really could do with some advice on the best route for us to go down, don't want to save & save & save (& stay at mum & dads for too long) if it's just going to be a dead end?
Look forward to hearing from you again, thanks :-)

Experian_company_representative

CCJs and defaults dated 2007 will disappear next year. Ideally you would wait until then, and then hopefully qualify for a competitive mortgage deal. Be careful about any plan to hide the adverse history as if discovered it would be registered as fraud.

Some more recent positive information in your bf's name might help his creditworthiness but don't apply for a new line of credit just before your apply for a mortgage.

James Jones

sindy1989

So if the CCJ's and defaults disappear will his credit rating improve with it or still be bad as a result of having them previously?
Is it 6 years from when they are issued that they get taken off then? Because he didn't pay them off til last year?
Thanks for the advice :-)

Thrugelmir

sindy1989 wrote: »

Is it 6 years from when they are issued that they get taken off then? Because he didn't pay them off til last year?
Thanks for the advice :-)

6 years from settlement. As the account would have been remained in "default".

Angry_Bear

Thrugelmir is incorrect - they will drop off 6 years after the date the CCJs were lodged. Similarly, if there are defaulted accounts they will drop off 6 years after the date of default (not settlement).

If there is an account with an agreement to pay or an account not listing as defaulted (just continual late payments) this will stay for 6 years after it is settled.

Thrugelmir

Angry_Bear wrote: »

Thrugelmir is incorrect - they will drop off 6 years after the date the CCJs were lodged. Similarly, if there are defaulted accounts they will drop off 6 years after the date of default (not settlement).

If there is an account with an agreement to pay or an account not listing as defaulted (just continual late payments) this will stay for 6 years after it is settled.

The account can remain in default until settled. Depends if flagged as such by the reporting body.

An arrangement to pay can have no time limit.

Angry_Bear

Yes, but a default will drop off your credit report 6 years from the date it was first lodged, even if subsequently settled.

However if a creditor never defaults the account (for example if you enter an arrangement to pay before the account is defaulted) then the account will remain on your credit report for 6 years after settlement. Which means that in some cases it is better to default first before trying to reach a resolution!

Thrugelmir

Angry_Bear wrote: »

Which means that in some cases it is better to default first before trying to reach a resolution!

No. As the outright default will be registered on National Hunter against the individuals name. Providing its with a financial institution.

Applications forms will also ask if you've ever defaulted. So failing to declare is an automatic decline,

Angry_Bear

Thrugelmir wrote: »

No. As the outright default will be registered on National Hunter against the individuals name. Providing its with a financial institution.

Do you have a source for this? From the National Hunter site http://www.nhunter.co.uk/faq.html :
[FONT=Arial, Hel</font></span></font><img src=][FONT=Arial, Helvetica, Geneva, Swiss, SunSans-Regular]We do not hold any credit scoring records, credit histories, information concerning County Court Judgements (CCJs) or bankruptcies, nor do we store Electoral Roll information.[/FONT][/FONT]
Although it's not that easy to find information on them to be honest, and you could very well be right.

I've never noticed the question about ever having a default on an application form but it sounds likely.