Mortgages, CCJs, charging orders..the whole caboodle!

skintbex

Bear with me this might be a long one but I'm desperately in need of advice..

Way back in the mists of time (2005), I split up with my chap. He moved out of the flat and I was left to pay everything on my tod. Cue 2008 and I've been left with debts from him, and a few of my own, and I got a CCJ for defaulting on a (interest free!) loan, and a Charging Order from Northern Rock for another loan.

Since then I've been paying off both loans - the CCJ has about £350 left on it which I aim to clear after Christmas, the other has around £3k on it and they have just sold it to Marlin.

Me and the new Mr Skint (except he isn't) are looking at buying a new property together, we will have a reasonable deposit by mid point next year, but I'm terrified no bank will touch me because of my credit history.

I have had my current mortgage and property for 10 years and have never missed a payment. 8 years of it Ive paid on my own. I also have a (normal not bad credit) credit card which I've been spending on and paying off to try to 'repair' my rating a little. In the last 4-5 years I've had no issues paying anything, all bills etc paid on time.

My questions are these....

1. I don't intend selling my flat. It is still in joint names so I would want to transfer it to my ex and his wife (we're still friends, believe it or not), and get him to buy me out, so I have some deposit for the new place - how much of a problem will this be?

2. Would I be better off paying off my debts instead of saving for a deposit - will this make a huge difference to my credit rating immediately? Total debt (not including mortgage) stands at around £6K, I can pay most of it off but then won't have much deposit.

3. Assuming I don't pay off my debts in one go - Marlin (or their solicitors) said the charging order was transferred to them when NRAM sold the debt to them. Apart from me being convinced the manner of NRAM obtaining said order was illegal, how could Marlin enforce this? The Charging Order was given to Northern Rock - can Marlin still enforce it?

I suspect I have answered my own questions here, but any advice would be helpful, ta

kingstreet

A charging order was granted on a jointly owned property on a debt in your sole name?

What was the date of registration of the CCJ and what was the original amount registered?

What is visible on all three versions of your credit file?

1. The charging order will prevent you altering the ownership of the current property.

2. It is likely you are better off concentrating on the bigger deposit, but the charging order is the issue. if you want to make changes to your current arrangements.

3. If there's a charging order, that remains, regardless of who owns what debt.

skintbex

kingstreet wrote: »

A charging order was granted on a jointly owned property on a debt in your sole name?

What was the date of registration of the CCJ and what was the original amount registered?

What is visible on all three versions of your credit file?

1. The charging order will prevent you altering the ownership of the current property.

2. It is likely you are better off concentrating on the bigger deposit, but the charging order is the issue. if you want to make changes to your current arrangements.

3. If there's a charging order, that remains, regardless of who owns what debt.

1. Yes. Jointly ownedproperty, charging order/debt in my sole name.

2. I thought you could sell/transfer the property but I'd have to tell whoeverholds it?

3. So Marlin could force me to sell the property?

kingstreet

In which case, it's actually a restriction and not a charging order.

https://forums.moneysavingexpert.com/discussion/1839539

https://forums.moneysavingexpert.com/discussion/comment/57490491#Comment_57490491

You can sell the property, clearing any charges/secured lending at the same time, to give your purchaser unencumbered title, but an alteration to the beneficial owners would require the agreement of any chargeholder.

If you did not keep to any repayment arrangement, they could go back to court and seek a repossession order. You should clarify the difference between a charging order and a restriction on this, though.

Thrugelmir

Always advisable to clear debts ASAP. Treating debt as an interest free loan may be beneficial to you. However lenders are wise to this game. So your credit history will be scored against you.