Satisfying my CCJ - Mortgage Advice

Cooki

Hi,

I would really appreciate your help.

I am 26 and have a CCJ that falls off my credit report this August. The CCJ was from when I was 20 at uni and based on my Halls of Residence fees not being paid. (my dad stopped paying but as I was 19 I was liable)

Anyway, I have disputed the CCJ for years but started paying it back in September. I will be in a position next month where I can pay off the remaining debt (will be around 600 pounds) in full.

My question is: if I pay it off in full and get a letter of satisfaction and send it to the credit agencies, come August (six years later) will it disappear completely?


I would like to get a small mortgage for £60,000 (I have already found the property, so it does exist!) and I was hoping that come August my credit rating will be a lot better (on the basis that it falls off)

I earn £29,000 a year and other than the CCJ I am very good with my finances (pay all my direct debits, have a granite credit card to try and improve my rating which is used for online purchases, then paid off, have paid my rent (£600pcm) every month on time for the last two years etc

Could anyone give me any advice on the CCJ situation. Should I pay it off and get it satisfied and if so will it still appear on my credit report in August?


I am desperate to get my first home. I have a 10% deposit saved, would be able to afford the repayments on a 60k mortgage easily over 25 years and I am unsure how to proceed. (whether to pay it and then try and find a mortgage, or go to a lender who gives mortgages for people with bad credit)

Sorry for lengthy post. New to all of this and need some help. Thanks in advance.

hcb42

Not sure why you disputed it when you admit you were liable, but I would pay it off in full so at least any lender can see you faced your responsibilities as agreed. Better that than it lingering on, although I am not sure how a lender would see it, but a broker could advise

inmypocketnottheirs

If the CCJ is almost six years old then my advice old be to speak to a whole of market broker as you may find that at this age it will be ignored. Especially if the rest of your credit file is in good shape.

Dave_Ham

Hi there,

Irrespective of it being satisfied or not, so long as the date registered is showing on your credit file (with Experian & Equifax) as x August 2006 it will drop off.

The issue will be who has administered the payment plan and if and how they have recorded this on your credit file.

It comes back to a flaw in the system for me, that you actually be penalised more for paying it back (if negative indicators or markers left on credit file) whereas if you had not repaid and hidden for 6 years it would not effect you at all come August..

Get your credit files printed for £2 each and put them in front of someone who knows the market...


Good luck