Any mortgage brokers who's brains I can pick on here?

aimeesmummy2007

I need one question answered to put my thoughts at rest, me and my partner would love to buy a house - he has a small CCJ (£327) which was added a year ago though. We would need a 95% mortgage and we have £9000 deposit. Is there any chance at all that we could get a mortgage through a broker?

He's credit score is good 886 and hes had a new car, bed & mattress and sofa on finance as well as mobile phone car insurance etc and weve never missed a rent payment (been renting since 2005).

I know the CCJ isnt going to come off his credit file for another 5years and id be gutted if we had to rent for another 5years.

Is there ANY chance at all?! He earns good money £31k a year by the way.

Any help/advice would be welcomed

GMS

No chance with the CCJ.

Southernman

You need a perfect credit score for 95% mortgages, that includes no missed/late payments on credit cards, certainly no defaults/CCJs

It's a case of saving up more and letting time take its course i'm afraid.

PS it sounds like you have a lot on finance at the moment as it is. Is there a possibility of you looking at a property just in your name?

Annisele

The income may also be an issue.

If your £9k is just the deposit for a 95% mortgage (i.e. it doesn't include money for fees etc), then it sounds as though you're hoping to borrow £171k. That's 5.5x your partner's salary - which means that he cannot borrow the money in his name alone given his credit commitments. How much do you earn?

aimeesmummy2007

No we dont have anything on finance anymore, im just saying over the past few years we have had the above things on finance and theyve all been paid off as well as the rent for the last 7yrs.

I just think it seems so stupid that for a £327 CCJ it stops you getting a mortgage, it isnt like you can run away with the house - if it turned out someone couldnt actually afford to pay it then the house would be taken away from them.

They need to start giving first time buyers a chance to get their foot on the ladder without judging I think.

aimeesmummy2007

Im a stay at home mum, will be going back to work part time hopefully soon.

We are not sure how much we want to borrow, the maximum times the salary of what my partner earns I suppose then we would look around within that budget.

My friends just bought a house for £144k and put down £7500 deposit roughly so that would be the kind of figure we would be looking at or maybe less.

missamyx

Have you looked into nationwide save to buy account? We have recently applied for a 95% mortgage with them. Saved for 6 months we managed to save £10,000 in this time but I'm sure the minimum is £50 you can put away. Depending on how much you are hoping to borrow. We are still waiting to here about the mortgage. Nervous times await.

opinions4u

aimeesmummy2007 wrote: »

I just think it seems so stupid that for a £327 CCJ it stops you getting a mortgage

If you can't be bothered paying the small bills, it hardly suggests that you're going to pay the big bills. That's not a personal dig at your partner. It's a statement of common sense.

Mortgage lenders have limited funds. Scale it down and they have a choice that boils down to picking from a customer who pays all their bills on time and one who only pays some of their bills on time. Which one would you lend to?

it isnt like you can run away with the house - if it turned out someone couldnt actually afford to pay it then the house would be taken away from them.

Absolutely. You buy a £100,000 house with a £95,000 mortgage. You run up £5,000 of arrears, get a repossession order and trash the place. The lenders sells it for £70,000 - crystallising a loss of £30,000. Mortgage lending is not a guarantee of profit. Lend to the wrong people and you will lose money.

They need to start giving first time buyers a chance to get their foot on the ladder without judging I think.

I prefer the way it is.

The first time buyer proves they are committed to a property by saving up the deposit.

The first time buyer proves they are capable of managing their finances by paying their bills on time.

The lender then assesses affordability and makes a responsible decision.

Is that so wrong?

The days of throwing mortgage funds at all and sundry are long gone. Hopefully responsible lending is with us to stay.

aimeesmummy2007

It wasnt a 'small bill' - the council apparently over paid us housing benefit 5 and a half years ago after we told them that my partner had found work. We used the cheque to pay the rent (which its intended for) then 2years later we start getting hassled that we wasnt even owed it. The dispute went on for years, having phone calls with managers etc but they just didnt care. The next thing we knew a letter from Northampton CC came, we didnt even know it was a CCJ so we offered to pay them £10 a month which they accepted.

It was only a couple of weeks ago I checked my partners credit file and found out exactly what it was.

None of this was actually our fault, THEY over paid.

DVardysShadow

aimeesmummy2007 wrote: »

.... I just think it seems so stupid that for a £327 CCJ it stops you getting a mortgage,

Let's just check the facts. Was the CCJ settled in full within 28 days? You are 'allowed' to have a genuine dispute and settle it with a court case without it going on your credit record. But if you lose, you must settle within 28 days

Edit: crossposted. No mileage in this approach.

opinions4u

aimeesmummy2007 wrote: »

It wasnt a 'small bill'

You described it as "he has a small CCJ".

- the council apparently over paid us housing benefit 5 and a half years ago after we told them that my partner had found work. We used the cheque to pay the rent (which its intended for) then 2years later we start getting hassled that we wasnt even owed it. The dispute went on for years, having phone calls with managers etc but they just didnt care. The next thing we knew a letter from Northampton CC came, we didnt even know it was a CCJ so we offered to pay them £10 a month which they accepted.

It was only a couple of weeks ago I checked my partners credit file and found out exactly what it was.

None of this was actually our fault, THEY over paid.

Seriously, get it paid in full. Fast.