First Time Buyer with CCJ

ConanTheBarbarian

Hi guys,

Wondering if I can get some help please..

I'm a first time buyer with a CCJ that ws registered some 5.5 years ago, its due to come off early next year and then my credit file should be fine.

In the interim, i.e. currently, I'd like to purchase a house and I have a deposit saved for this. I'd like to get some idea on the type of lender that would lend me the money for mortgage.

Some basics - I am 33, wanting a house for about 145k and I have around 10-15k to offer as deposit ideally. Wanting to move forward on this ASAP, so if there are any brokers that come recommended for impaired credit, that would be great.

Any help additional to this will be welcomed. I'm an absolute novice, I'm getting as much reading done as possible before I commit.

Cheers guys,


CTB

kingstreet

90% or more with a visible CCJ is going to be very difficult and your pool of lenders is going to be very, very small, if any.

How much was the CCJ, is it satisfied and what was the story?

You'll probably be better waiting until it drops off your credit file

Either way, it's a whole market broker job.

ConanTheBarbarian

The CCJ was for 10k - it's not satisfied and I understand its a significant amount. It's being paid back gradually, after some digging I did, I understood that once it's removed, its highly unlikely it will be added again. So I'm hopeful that come March time, I'll be able to live a normal life!

I am arranging to meet with some BS in the next week or so, maybe they will be more sympathetic to my dilemma than the larger lenders.

And I believe you may be right, I don't want to pay over the odds and waiting a few more months may be the right thing to do.

kingstreet

The CCJ may not be visible on your credit file when the six years has passed, however, if you continue to make payments, they will be visible on your bank statements and may be queried by some lenders.

ConanTheBarbarian

Hmmm….

Do you believe it would be better and to switch over to making these payments to them in cash at a bank or something similar?

This CCJ has been such a hindrance, its almost like a 6 year jail sentence, I've got my house in order since then, so I guess it has worked.

Also, is there any truth in this… That even once my CCJ has been removed, some lenders prefer not to lend to those that have had a CCJ and wait a year or so AFTER it's cleared off my history? Just something I read somewhere.

Thanks.

kingstreet

How a lender might treat historic adverse will probably be determined by the question it asks.

If "have you ever?" it may take something no longer visible into account, moreso than a lender asking "have you in the last six years...?"

ConanTheBarbarian

How do you know so much? You're like a Money Saving Yoda!

leveller2911

If you have £10-15k savings why not just pay off the CCJ in full?.

Job done and then just save like mad to increase your deposit.

Thrugelmir

leveller2911 wrote: »

If you have £10-15k savings why not just pay off the CCJ in full?.

Job done and then just save like mad to increase your deposit.

Second this view.

Settling the CCJ should be the priority. Certainly not doing yourself any favours by not doing so in the context of obtaining a mortgage.

ConanTheBarbarian

Thrugelmir wrote: »

Second this view.

Settling the CCJ should be the priority. Certainly not doing yourself any favours by not doing so in the context of obtaining a mortgage.

Appreciate that, but here's the thing - That CCJ will be on my file for 6 years and whether its satisfied or not, it will not be on from March 2014. However, during this time, it is being paid monthly like a mobile phone contract. Truthfully, if I satisfy it, I don't believe it will help me as it will be off my file anyway and the likelihood of it being re-added is negligible as I am maintaining payments with the firm that placed it and I have been doing so for some time. There is no need for them to rock the boat and re-add it as they are being paid what I agreed with them.

Therefore, I have gone down the path of saving for a deposit.

Hope this makes some sense and thank you both for sharing your advice.

CTB

Dave_Ham

As suggested the content of all 3 credit files will be crucial, however I suspect you either need 15% deposit or March 2014 whichever comes sooner.

All the best