Can I get a mortgage?

keirk

Hi Everyone,

I've been reading the emails from Martin and reading this boards for a while now but I've finally plucked up the courage to register and ask a question...

I've been living with my girlfriend for about 18 months (in her house, currently valued at ~£150k) and recently we have been talking about buying a house together... and have seen a few we like at around the £200k - 220k mark.

I am 25 and I have a resonably good job (earn ~ £24k) but in the past (when I was 18 / 19) I had some problems, including a couple of defaults and a CCJ (which I am repaying in installments - balance ~ £1k).

Since then I have always ensured that my bills are paid (but I have little savings). I have recently been given a couple of credit cards (which I am managing well).

What are my chances of getting a mortgage - does the CCJ mean it's a big NO? I've told my girlfriend that I have a bad credit rating, but not discussed the CCJ.

Thanks in advance for your advice.

Keirk

Mr_helpful

You may well be ok but I would get a copy of your credit report to see what is said on there.

herbiesjp

Best place to look at are Equifax and Experian - you can normally sign up for a free trial to obtain your report (don't forget to cancel the trial though)

HTH

keirk

I have a copy of my credit reports and as I said it lists a couple of defaults and a CCJ.

My question was will this mean that I will not get a mortgage?

Mr_helpful

No this does not you mean you will not get a mortgage. I have just got someone a mortgage with the Abbey with a CCJ and a default both unpaid. It is better to use a broker than go direct but there oughtto be some lewnders who will look at you

JenniO

Try Chelsea Building Society. They take a bit of adverse credit and the CCJ is from years ago. Failing that, try Leeds Building Society. Both have generous income multiples and have a very competitive interest rate (Chelsea is better though). I think they would be a good bet for you. Good luck.

sammyjammy

How old is the CCJ? Doesn't it fall off after six years even if its not repaid in full yet? If its less than 1k can you pay it off in full now?

Matt_Bristol

To Sammyjammy - CCJ's fall off credit reporty 6yrs from satisfying them to my knowledge

To Keirk - It will depend on whether you have a deposit to put down and what % it will be Abbey will look at people with CCJ's depending on what the rest of the history looks like , if you have a 10% deposit i imagine you will have no problem at all in getting a good rate , also it will depend on the size of the CCJ , alot of lenders will ignore small CCJ's but if its for £5k + then you may find that you have to pay a little more

herbiesjp

Anything more than 6 years old will fall off your credit file satisfied or not

keirk

Matt_Bristol wrote: »

To Keirk - It will depend on whether you have a deposit to put down and what % it will be Abbey will look at people with CCJ's depending on what the rest of the history looks like , if you have a 10% deposit i imagine you will have no problem at all in getting a good rate , also it will depend on the size of the CCJ , alot of lenders will ignore small CCJ's but if its for £5k + then you may find that you have to pay a little more

The CCJ is from Dec 2003 - so should come off Dec 2009 - it's for £1500 - which I am repaying in installments (very slowly I must say)...

We would have a 10% - 15% deposit. I am signing up to the free 30 day subscriptions for the credit refs to sort out any other problems...

Would it make a huge difference to repay the CCJ quicker? Or adding a note to my credit file - to explaining the reasons behind it?

Thanks for you help everyone - I feel much better and more positive.

sandanista

I've just obtained a 100% mortgage with the Leeds Building Society. I have 3 defaults which how now been satisfied, but won't be off my credit file until 2009. I used a WHOLE of market broker to assist me. I suggest you do the same. If they are not whole of market, don't bother.