Mortgage advice please

Mortgagenewbie2

Evening all, long time lurker here but finally had to register to ask for some advice.

Me and my wife currently live with her parents, her dad has kindly offered to gift us in the region of 20k for a deposit on a mortgage.

The immediate neighbour inherited his house around 20 years ago and has only lived in it for maybe 3-6 weeks a year as he lives and works in Scotland. My FiL has looked after the property in the periods the owner has been away such as mowing the garden etc. Last year my FiL asked the owner on our behalf if he would consider renting the property out to us (me, my wife and 9yo son). The neighbour said he wouldn't like to rent as too much hassle involved to manage from Scotland which is fair enough and we thought no more of it.

The neighbour was back last week for a few days and invited my FiL round to discuss the house, the outcome of the conversation is that he is putting the house up for sale in April and he would like to give us first refusal, hence the reason my FiL is kindly gifting the deposit as we have just paid a substantial amount of money for the wedding and honeymoon expecting to be here for another year to save our own deposit. But as it is a house next door to her parents and in a nice area we would live to buy it, but now here's the question;

Both me and the wife have bed credit from the past, I have a Ccj from 2007 (settled) but not due to clear from my file until September this year. We have used budget spreadsheets and could easily afford £1100 in mortgage payments monthly with £700 left between us per month. We have no debt just not very good credit files, would we be able to get a mortgage? (Property is valued at £200000) so LTV of 90%.

If we were unable to get a mortgage what other options are there? Could her parents (both 55) who own their house outright get a new mortgage in their name but with us making the payments and then once our credit file is clean but from them?

Or have we got no chance and its just best to continue saving our own deposit and buy a property once our credit files allow us too?

I have a meeting with an independant mortgage advisor at 9.15 on Tuesday but would just like some advice as to whether you thing it's doable?

Apologies for the length but I hope someone who knows more about mortgages may be able to help.

Thanks

Thrugelmir

When was the CCJ settled?

What's your gross household income?

Mortgagenewbie2

Hi thanks for the reply, ccj was settled in 2008, it was only for £378! I was in a bad way with finances back then!

My salary is £46,000 pa and the wife's is £11000.

Thanks

TWNK

We are in a similar situation and the high street lenders are telling us that the CCJ must be settled for 6 years before they will touch us, even though the CCJ is no longer on the credit report. We are now waiting to see if a broker can help us.

kidmugsy

Mortgagenewbie2 wrote: »

the reason my FiL is kindly gifting the deposit as we have just paid a substantial amount of money for the wedding and honeymoon

It's too late for you but my advice to potential FTBs is no honeymoon, no extravagant wedding, buy your house with the aid of the money saved, and on your tenth anniversary have a celebratory "honeymoon". If you're not together after ten years you can spend the money saved on your divorce.

kingstreet

TWNK wrote: »

We are in a similar situation and the high street lenders are telling us that the CCJ must be settled for 6 years before they will touch us, even though the CCJ is no longer on the credit report. We are now waiting to see if a broker can help us.

This is a little odd.

Which High Street lenders are feeding you this guff?

If the application asks "have you ever had any county court judgments?" you would answer that you had and you could be declined, based on your disclosure.

If the lender asks "have you had any county court judgments in the last six years?" and you answer no, you have answered truthfully. The entry leaves your credit file six years from the date of registration, not the date of satisfaction, so nothing will contradict what you've said on the form.

You need to establish what lender asks what questions, to ensure you answer the question honestly, but without jeopardising your chances.