FTB mortgage with CCJ

MRSB

Hi all,

I've been on before asking about mine and my Husband's chances of getting a mortgage when he has a (very recently paid off) CCJ for about a thousand pounds on his credit file. We are waiting for the status to be changed to satisfied on this at present. The CCJ was filed in June 2011.

Time is a healer is the consensus we have reached, and we are going to look at obtaining a mortgage next September when my husband will have been at his new job for one year, as we've been told that the criteria on how long you've been at a job before applying are stricter for the 'poor credit' mortgages.

We'll also have 25% deposit, and have worked out what we will be able to afford based on a 6% interest rate with a contingency on top of that as well. I know that obviously this interest rate could go up or down, and after a little research it seems this is the rate a lot of people quote as a ball park figure for people in our situation. (Please let me know if anyone thinks this is way out!)

My question is though, is the interest rate likely to be this high for the entire time that the CCJ is on my Husband's credit record, or might the rate get better as the CCJ gets older? It'll be over three years old next September when we want to start applying, but we don't know whether to hold off for another year if that will make things better all round (lower interest rate, easier to get mortgage etc)?

Any advice greatly appreciated. I know things may change in the meantime before we apply, but we're trying to make the best of a bad job here and get prepared so any replies would be great.

Thanks everyone.

ACG

With a 25% deposit, i think you will need to go via a broker - but i dont think you will have a problem getting a mortgage.

If you were wait till June (This year), there are rates below 5% available, possibly even 4%. So by September next year I would be very surprised if you were stuck at a rate of 6% (But things can change).

Thrugelmir

If you've the savings. Why wasn't the CCJ satisfied earlier?

Time does heal. However personal attitude reflects also in credit records.

MRSB

Thanks for the replies.

ACG - That's really interesting thanks. Would the interest rates go down further when the CCJ is over 4 or 5 years old or would the interest rates stay about the same regardless of how old the CCJ is until it drops off the credit file please? Just trying to work out if it's worth spending money renting for longer, or paying higher interest on a mortgage for x amount of time..

Thrugelmir - It was only two months ago when we checked our credit ratings (both being 'young' and not having 'needed' to before then and to be honest not really being aware of them, especially on my part as I'd never had credit before and my Husband has only had a phone contract), that we had realised that it was a CCJ and not just a repayment plan (took time to find my Husband as he relocated twice). This was Naive/stupid yes, but there were a lot of unfortunate circumstances around the time we found out about this debt, which was not due to misuse of credit, but an issue with a former employer of my Husband's disagreeing with the accrued leave he had taken before having to leave his job unexpectedly to relocate to help an ill family member. In hindsight we would have paid up within the 30 days and had done, but a payment plan was the suggestion and we went with it having other things to consider, having only just started saving properly for our deposit, and not wanting to leave ourselves with no contingency as we were expecting a child. My Husband now has a credit builder credit card (the first credit card he has had) and we've done all the other things like making sure we are on the electoral role to try and salvage the situation but we live and learn. As soon we found out we paid off the remainder straight away, but obviously that doesn't count for much. Our deposit is helped by family members too, but we have saved a good wedge ourselves, and will be contributing around half come application (about 30k deposit in total with a just over a quarter saved thus far). Sorry for the mammoth ramble, I just don't want us to seem like 'bad people', although we are entirely to blame I know.

Also, say we apply and get a mortgage with one of the sub-prime lenders before the CCJ is off the file. Are people usually fixed in for longer than with a highstreet lender? or is it normal to remortgage with a highstreet lender after the CCJ is gone please?

Thanks again.

MRSB

Also ACG, with those kinds of mortgage rates, what is the criteria for how long you have had to be working at one job, including or excluding probation period please? My Husband is a student at present graduating in June this year and starting a one year graduate scheme in September with a guaranteed full time job following on which is in his contract. We have been told by another broker that he will have needed to be with this employer, (a very large, well known rail infrastucture company if it makes a difference) for at least one year before we will be able to apply for any mortgages, is this the case as far as you know please?

Thanks.

ACG

With regards to the deals, your tied in for a couple of years - but no different to any other mortgage.
The lenders i know of have fairly decent rates, as things currently stand you could probably get a better rate if your CCJ were a bit older but not a massive difference.

The criteria, im not sure on how long to be honest without looking through their criteria.

This is why i think its worth a chat with a broker. They can take all the info they need, go off and research the market and come back to you with whats out there (if anything, i cant be 100% as there is only limited info on this thread), you can then compare if its worth renting a bit longer or not.

Thrugelmir

MRSB wrote: »

I just don't want us to seem like 'bad people', although we are entirely to blame I know.

Not suggesting that you are bad people. A CCJ is only issued as a last resort. When all other attempts to seek redress have been exhausted. A judge has to be fully satisfied before issuing same. So the seriousness of having one registered against your name should not be underestimated.

MRSB

Thanks again for your replies.

Thanks ACG, we'll try and book an appointment with a broker after my Husband has finished University and see where we stand. I have given a couple a ring but haven't been taken very seriously so hopefully if we see one face to face they'll be able to help more. Also, you said that there was limited info on my thread meaning that you couldn't be 100% there will be anything available to us - could I provide any more information to give you a better idea please?

Thanks Thruglermir, don't worry I know how serious a CCJ is - we're just trying to make the best of a bad job.

ACG

Some brokers wont want to look at it, there could be a lot of work involved and some either dont have the time or knowledge or dont want to get involved with adverse mortgages - they may be happy with the run of the mill clients.

There is more info needed really but to ask for it on a forum isnt really ideal as you could end up writing war and peace.

If you maybe have a look for a broker who does do adverse mortgages, take your credit reports with you im pretty sure you will be ok - im not saying 100% as that would be unfair on you and give you a reason to come and hunt me down for building your hopes up but i would think you stand a decent chance of getting a mortgage.

Dave_Ham

Just to back up what ACG has said, come June this year I would expect you to be mortgageable on fair rates.

Without knowing all of the facts and seeing your credit files, no-one can give you complete confidence but definitely a good chance.

All the best

MRSB

Thanks very much ACG and Dave Ham. Does anyone know please how number of house moves affects credit score/ opinion of mortgage provider? With being at university my husband has moved addresses five times in the past three years, (twice as a family with myself, once into university halls, and his parent's moved house which he has to declare as it was during the university summer break before we moved in together, so he moved back home for this period). I have moved the two times as mentioned above and before then had lived in the same address for ten years. Our rental contract is going to expire in June this year, and we are considering moving with the intention that this move will be the final move until we buy a house. Basically, will moving again reflect on us badly, or will it be okay as we are planning to be in the next house for over a year? How far back does address history go on mortgage applications? Thanks in advance! Sorry if this isn't worded very well, have borrowed a tablet and am not used to it!