Getting a mortgage with a settled CCJ

TWNK

£££££££££££

GMS

Get credit reports and speak to a broker. CCJ should have been removed after 6 years from registration.

Any missed payments in last 3 years?

Thrugelmir

Why did it take 5 years to settle the debt?

TWNK

No missed payments in last 3 years. Do you think it will make any difference if we wait until 3 years after it was settled or should it not matter if the CCJ is removed from the reports?

He was paying the payments as directed by the court and then paid it off with a lump payment.

Thrugelmir

TWNK wrote: »

He was paying the payments as directed by the court

Therein lies the problem. People think they've beaten the system. By stretching repayment as long as possible. Treating it as an interest free loan.

To a lender it clearly shows a potential borrowers attitude towards money and debt. (The repayment schedule will be scored on the credit report as in default). So will be disinclined to lend such borrowers thousands of pounds, when there's better risks applying for mortgages.

TWNK

Thrugelmir wrote: »

Therein lies the problem. People think they've beaten the system. By stretching repayment as long as possible. Treating it as an interest free loan.

To a lender it clearly shows a potential borrowers attitude towards money and debt. (The repayment schedule will be scored on the credit report as in default). So will be disinclined to lend such borrowers thousands of pounds, when there's better risks applying for mortgages.

To be fair he did pay it off in a lump sum when he was able to, he could have dragged it out for far longer but I know what your saying about the way it may be viewed by lenders. If those payments are showing as in default that may be the problem rather than the actual CCJ and we need to wait till 36 months after the last payment.

GMS

Which lender declined the application? How much was the CCJ for?

Thrugelmir

TWNK wrote: »

To be fair he did pay it off in a lump sum when he was able to, he could have dragged it out for far longer but I know what your saying about the way it may be viewed by lenders.

Not just viewed but scored. The CCJ isn't the end of the matter. The payment of the debt matters considerably as well.

Not making any personal observations. Just pointing out that this will have a very negative impact on his credit rating.

TWNK

GMS wrote: »

Which lender declined the application? How much was the CCJ for?

It was Chelsea BS, we are now considering using a broker. Think the CCJ was for around £4000
I am worried that even if the CCJ is off the reports they can still ask if you have ever had 1.

TWNK

Thrugelmir wrote: »

Not just viewed but scored. The CCJ isn't the end of the matter. The payment of the debt matters considerably as well.

Not making any personal observations. Just pointing out that this will have a very negative impact on his credit rating.

He always paid on time but if they show up as in default I presume these payments will be considered in the scoring for 6 years then?

GMS

If you are asked 'Have you ever?' then obviously you need to answer yes.

If the CCJ is still on the report then this will be causing big issues.

Have you seen the credit report(s)? As the lender have clearly stated adverse in last 3 years you need to check what it says.

Random applications to lenders will cause issues.

Even with the CCJ (assuming registered more than 3 years ago) you may well have options with a 30% deposit.

Definitely a broker would be useful on this.