Mortgages and CCJ

JemmaWay

I need some advice,

I recevied a CCJ in 2009 (due to my father not paying rent which i wasnt made aware of until it was too late) which I didnt pay off untill Jan 2012 (due only to be a silly young naive student!!), the payments where a minimum for a few years due to not earning alot at university, but I didnt managed to pay a lump sum off to finalise this. I have received a Certificate of Satisfaction and my credit rating is fair. I was also asked to pay back my nationwide overdraft monthly due to exceeding it several times whilst being s student, which was resolved a few years ago but other than that I have no other failed payments or debts against my name.

I have recently applied for a small loan to buy a car which was rejected and now im extremely worried that when my boyfriend and I go to buy a house this time next year the mortgage wont be excepted.

My boyfriends credit rating is excellent and he has no trouble in obtaining loans and finance. other than havig his student loan he has no debt against his name.

Could you give me some advice on this topic, if anyone has been through the same is there any guidence that I should follow?

Are there any steps I can take to help myself out for when the time comes when we get the mortgage.

is it worth seeing a mortgage advisor now to prepare us for a years time?

Dave_Ham

You are right to canvass opinion in advance as obviously it will effect your chances.

Time is a good healer, would suggest you get close to your Experian & Equifax credit reports and would suggest you think about applying for a damaged credit credit card. Vanquis, Capital One are amongst the easier to achieve.

You are likely to not get a highstreet bank mortgage, so an advisor will probably be a good idea.

All the best

JemmaWay

Thanks

Does it look bad on my credit file that i have applied for this loan and its been rejected?

Would obtaining a mortgage through someone like taylor wimpy differ from a high street mortgage? we are both first time buyers?

Is it worth trying to obtain the credit card, do you think i will be excepted for one?

Also I have direct debtis going out of my account currently but they are only to my boyfriend and dad do things like this still help in somepart to making my credit rating better?

Dave_Ham

Taylor Wimpey do not do mortgages per say, although they will not have ones for you...

The loan decline will hurt you nowhere near as much as the CCJ, so do not worry about this. With a CCJ you are unlikely to get any unsecured credit, although these credit repair cards will probably give you £150 or £200 limit and probably take a punt on you..

Good luck

JemmaWay

ok so apply for a credit repair and take it from there, do you think a year of steady repayments will help me in anyway? is there anything else i can obtain to assist further?

is there any advice on who would be the best people to approach for the mortgage advice? we were going to go to taylor wimpy to talk it through?

Dave_Ham

The more good credit lines you can put on there the better, although nothing will mitigate the CCJ only help a bit..

Taylor Wimpey is not a good call, see an independent broker local and recommended although if you are considering a new build then do some research on here first...

DVardysShadow

Confused. According to this https://forums.moneysavingexpert.com/discussion/3738787 you had a ccj on an HSBC student account 4 years ago [2008?] as well as a ccj for rent and being asked to repay a Nationwide overdraft.

You do need to get to grips with knowing exactly where you have had problems. Otherwise you could inadvertently go back to the same lender, even after 2015 [when everything will have fallen off your records] and they would be perfectly entitled to reject you on their own records - putting more rejections on your file.

JemmaWay

The CCJ is on my student HSBC account which i used to pay rent off with. This then, due to being a stupid naive student, spiralled out of control and wound up as the CCJ. I then think the repayments of the nationwide overdraft (another account) have not helped my credit score. there are two separate events that i think play a part to my credit file. Theres no confusion where the problems lie.

Do you have any advice on where to go next?

DVardysShadow

JemmaWay wrote: »

ok so apply for a credit repair and take it from there, do you think a year of steady repayments will help me in anyway? is there anything else i can obtain to assist further?

is there any advice on who would be the best people to approach for the mortgage advice? we were going to go to taylor wimpy to talk it through?

Never ever take financial legal or any other kind of service from an estate agent or anyone who is involved in selling you a house.

Apart from that, as your memory appears a little ropey, you need to look back over your financial affairs over the last 6 years and make sure that everything has been paid up - particularly any accounts you may have closed just before changing address. Utilities, phones, the lot.

As it seems that you actually have 2 CCJ's and financial issues with 2 banks, you cannot afford any more mistakes. If you have any credit now of any sort, make sure it is paid on the dot. Make sure your current account is never in overdraft, so you won't have DD's fail. Don't save if you have any outstanding credit - get it all cleared.

JemmaWay

I definietly only have the one CCJ and apart from orginially writing 2008 (geninue error) this CCJ was applied to my HSBC account in 2009. I have ensured that all payments have been resolved and my name removed off of any utility bills from university days. I have paid off my nationwide overdraft this year so I no other debts against my name other than my student loan.

Thank you for pointing out my errors! I will ensure that we approach a mortgage advisor to talk through the legalities from this point.

We just want to know where we stand so when we go for the mortgage in a year we hopefully wont be turned down?

DVardysShadow

JemmaWay wrote: »

The CCJ is on my student HSBC account which i used to pay rent off with. This then, due to being a stupid naive student, spiralled out of control and wound up as the CCJ. I then think the repayments of the nationwide overdraft (another account) have not helped my credit score. there are two separate events that i think play a part to my credit file. Theres no confusion where the problems lie.

Do you have any advice on where to go next?

OK, rent came from HSBC account, which was bled dry, because father was not topping it up?

I think most points have been covered, apart from making sure you are on the electoral role.

The consequences of this CCJ will live with you until 2015. Next year it will be 4 years old, at which stage if you have a clean record otherwise, you will begin to find more acceptance. But you probably won't get the best deals - ie high Loan to Value low interest. I would suggest that you plan to compensate by building up more savings, so that you go for a 90% mortgage rather than 95% - or 85% rather than 90%. The combination of a clean record plus high savings will make you more attractive as a lending prospect.