Mortgage advice with CCJ please

MRSB

Hi,
I'm hoping some of you might be able to advise about myself and my husband's current situation. Please bare with me as I've tried to research and read up about this but I don't have a great deal of understanding about mortgages etc.

My husband is 24 currently, is a student and we have a young son. At present we are living off of his student loan and disability benefit that I receive. My husband is due to start a job in September and we would like to buy a house as soon as we can as a relative is helping us with our deposit so we will have in the region of 75% LTV. However, my husband has a CCJ filed in June 2011, which he is arranging to pay off in full at the moment. This means his credit score is poor (1/5 on noddle), but he does not have any other defaults. He has just taken out a credit builder credit card, and is on the electoral role etc. to try and rebuild his credit score, but he will be the only person earning a wage in our household on our mortgage application. We have checked and in theory the wage he will earn will allow us to borrow enough for the properties we are interested in buying.

I am 21 and have never had any credit or phone contracts etc. before, and have been unemployed for health reasons and because of my child since June 2010. I am on the electoral role, and am thinking of applying for a credit card as well to boost my credit score but don't know if that'll make a difference in a mortgage application as I will have no income? My credit score at present on noddle is 3/5 so middling but not great.

My husband went to a mortgage advisor before he checked his file and realised that he had a CCJ on it, and based on 75% LTV and my husband having 6 months worth of pay slips from his new job, the mortgage advisor thought we would be in a reasonable position to apply for a highstreet mortgage. However, obviously with the CCJ things get a lot more tricky, and I am wondering whether we will even be able to get a sub-prime mortgage within a year of my husband starting his job in September 2013. In September 2014 my husband will have been in his job for 1 year, and the CCJ will have been settled for 18 months. Could we get a mortgage sooner than this?

I am sorry if this is very long winded, we are relocating and our chances of getting a mortgage greatly affect where we will be living in the meantime.

Thanks very much for any advice you can give.

kingstreet

TBH it's all ifs and buts at the moment.

I'd look at this again when he has a firm written job offer and confirmed commencement date.

There will be one or two lenders to think about then.

When his probationary period is ended, a few more will be on the radar.

When he's been there six months, there will be others.

The CCJ is going to be a hurdle, but at this moment, all we could do is speculate...

ValHaller

If your OH only discovered the CCJ through looking at his credit report, it may be worth looking at getting the judgement set aside. But that depends on why he was not able to defend.

MRSB

kingstreet wrote: »

TBH it's all ifs and buts at the moment.

I'd look at this again when he has a firm written job offer and confirmed commencement date.

There will be one or two lenders to think about then.

When his probationary period is ended, a few more will be on the radar.

When he's been there six months, there will be others.

The CCJ is going to be a hurdle, but at this moment, all we could do is speculate...

Hi, he has his contract and start date of 1st September. I forgot to put that my dad who has a good credit rating and earns quite a lot (3 or 4k left after living costs per month) has agreed to be a guarrantor if needed. Does this make a difference at all?

Thanks

MRSB

ValHaller wrote: »

If your OH only discovered the CCJ through looking at his credit report, it may be worth looking at getting the judgement set aside. But that depends on why he was not able to defend.

Hi, my husband has known about this debt for about a year but only recently looked up his credit score. (He took holiday leave at a previous job and then relocated so company wanted monetry equivalent of the days he took off over his accrewed entitlement, but he then relocated twice more in 18 months and so last year was the first time anyone had been able to contact him about it). He has been paying it off in installments since he found out about it. He was very naiive and for some reason overlooked that it was a CCJ and would be on his credit record!

Do you know if there are any grounds in the above to get the judgement set aside or should we just make the best of a bad job and hope that we'll get a mortgage with CCJ in tow please?

Thanks

MRSB

Forgot to thank you both kingstreet and VanHaller for your replies too. Thanks so much!

Thrugelmir

MRSB wrote: »

Do you know if there are any grounds in the above to get the judgement set aside

Unfortunately that's not how things are in the real world. You cannot avoid paying your debts. Then expect the lenders to consider lending thousands of pounds.

The fact its being paid in instalments does no favours either. As this is merely continuing to impact your partners credit record further.

A harsh lesson that I doubt he'll repeat. Playing games costs dearly.

Fortunately there's plenty of time to rectify the situation.

MRSB

Thrugelmir wrote: »

Unfortunately that's not how things are in the real world. You cannot avoid paying your debts. Then expect the lenders to consider lending thousands of pounds.

The fact its being paid in instalments does no favours either. As this is merely continuing to impact your partners credit record further.

A harsh lesson that I doubt he'll repeat. Playing games costs dearly.

Fortunately there's plenty of time to rectify the situation.

Sorry, I don't know how CCJs work so was just asking the question in response to a previous reply. We are in the position now to pay a larger amount to clear the debt but could not afford this previously - that is being sorted out at the moment. Please can you tell me what you mean by 'fortunately there's plenty of time to rectify the situation'?

Thanks for your reply

Thrugelmir

MRSB wrote: »

Sorry, I don't know how CCJs work so was just asking the question in response to a previous reply. We are in the position now to pay a larger amount to clear the debt but could not afford this previously - that is being sorted out at the moment. Please can you tell me what you mean by 'fortunately there's plenty of time to rectify the situation'?

Thanks for your reply

Age. As will take time for the negative effect to disappear.

Lenders rely on statistical data. Bad payers in any form are likely to reoffend in the future in some way. Down to human nature, and an individuals attitude towards money etc. So a squeaky clean credit record for a period of time is the only solution. To prove that the lesson has been learnt.

MRSB

Thrugelmir wrote: »

Age. As will take time for the negative effect to disappear.

Lenders rely on statistical data. Bad payers in any form are likely to reoffend in the future in some way. Down to human nature, and an individuals attitude towards money etc. So a squeaky clean credit record for a period of time is the only solution. To prove that the lesson has been learnt.

Thanks. Would I be able to find out how long that length of time would be anywhere? I was hoping that we wouldn't have to wait for years until this CCJ drops off his credit record before we'd be able to get a mortgage...

Thrugelmir

MRSB wrote: »

Thanks. Would I be able to find out how long that length of time would be anywhere? I was hoping that we wouldn't have to wait for years until this CCJ drops off his credit record before we'd be able to get a mortgage...

Suggest you speak to a mortgage broker that has a good knowledge of adverse credit lenders. As mainstream lenders are most likely out of the equation for some time.

The impact of CCJ's should never be underestimated.