Mortgage - Scared of rejection!

richand

Hi All,

myself and my partner are looking to buy a house, We have set ourselves a realistic budget and have saved a deposit that matches 10% of that budget.

Now, I have a CCJ from January 2008 for £1500 which I have satisfied, this was for a past employer overpaying me by £20 each month of my employment! I was much younger and didn't notice until I left, they then took me to court and I couldn't afford to pay it so hence the CCJ, its over 5 and a half years old....!

So, I have applied for a mortgage in principle from Nationwide (who I bank with also) and this has been accepted and they have credit searched me, I answered truthfully regarding the CCJ.

Now, I am looking for a house and will place an offer based on the MIP, but will I get rejected at the application stage? looking on the lending criteria for Nationwide, they don't offer CCJ mortgages at all, so why the accept at MIP?

I earn £35k PA and my partner £20k PA

We have saved 10k in 5 months just for an idea of our outgoings, The mortgage we have applied for is based on £85k with 10% Deposit.

ACG

Speak to them, see what they say. It seems strange that you have an agreement in principle if theyre going to accept it.

I would imagine there will be lenders this will go through with (although i would prefer to see a 15% deposit).

richand

That is what has thrown me, why would they accept the principle if they will reject at application?

A link I found says this for Nationwide criteria:

CCJs : Refer to lender
Defaults : Refer to lender
Arrears : Refer to lender max months 3
Bankrupt : Acceptable, min months Discharged 36
Current IVA : Not Acceptable
Repossession : Refer to lender

An application may be referred if either applicant has exceeded 3 months
arrears in the last 3 years.
Credit reference must cover all addresses for all parties for the last three years.
Normally the applicant should have no CCJs although one satisfied CCJ under £250 can be accepted (Scotland: Sheriff's Court Decree).
- The Lender will judge customers with previous or existing adverse credit in a flexible manner and every case will be judged on its individual merits, along with the customer's ability to keep up repayments on the mortgage, taking into account his/her existing liabilities.

ACG

You need to speak to nationwide. I havnt used nationwide in a long time - probably getting on for a year. I dont think they are that flexible, certainly not at 90%... the only people who can answer though are nationwide.

Your best get this sorted one way or the other before you get too far down the line otherwise it could become very stressful at the last minute.

richand

ACG, I'm afraid to ask them, sort of poking the lion! Guess there are always other lenders but the existing customer deals are pretty nice from them and having all my banking in one place is an added bonus.

richand

I will have a word with them, can they really say until underwriting stage?

ACG

You wont be poking the lion, the underwriters will not miss a CCJ/Default. All you are doing is being prepared. I speak to lenders before submitting an application all the time.

If you want to ask generically call up and say you are thinking of submitting an application...

richand

I have spoken to the mortgage team and then the underwriting team and they assure me that any credit scoring has already been done and the stage once application is made is based on documentation and affordability along with the survey for the property being ok.

They did say the ccj at 5 and a half years on what is a clean credit rating and the fact I bank with them and have over £10k of available credit with credit cards and overdraft from them of which I am using none should play a bigger role than an old CCJ along with several settled credit accounts.

Fingers crossed!