First time buyer mortgage with a CCJ

jfx

Hi,
My partner and I are first time buyers and are looking to get a mortgage in principle.
We have a reasonably good combined salary as well as a 5% deposit ready. Unfortunately, although my credit history is excellent my partners credit history contains a satisfied CCJ for just over £1000. This was paid off in August of last year and a note added to the credit record to state this, however we have been told that this vastly reduces our chances of getting a mortgage, despite salary, deposit and my credit rating.
Would anyone be able to shed any more light on this? I have heard that we might be able to look at other non high street lenders but I am unsure of how to go about this. Is a mortgage broker the answer? And are we setting ourselves up for some massively high interest rates if we are lucky enough to get a deal?
Any advice is greatly appreciated.
Thanks!

ACG

With a 5% deposit there are no "adverse" lenders. So you either get a relatively normal rate or nothing at all.

The most important question is when is the default dated?
The second most important is - is the default on all 3 versions of your credit report?

On a side note, if you have a notice of correction - remove it. It doesnt do anything beneficial and can actually prevent a credit check getting an automatic pass.

jfx

Hi ACG,
Thanks for your reply.
The CCJ was issued on Nov 2009 and satisfied on Aug 2013. My partner was advised by Experian to add a notice of correction - is there a hard and fast rule over whether or not this is the correct thing to do or is it a case of different providers having different views?
To my knowledge the CCJ is visible on all 3 credit reports.
In your opinion is it worth our while enlisting a mortgage broker to scour the market for us or is it likely a lost cause?
Cheers,
jfx

ACG

Because of the age of the default, there are 2 lenders I know of who would potentially accept it.

I know both of them would not automatically pass it if it has a NoC on. It wont result in a different outcome (ie accept or decline) but it will mean it has to be manually checked as the computer will throw it out.

When a computer does the credit check, it looks at your credit report. It cant determine what info is in the notice so it will always throw it out to be looked at by a human. Lenders ignore them anyway so they are completely pointless.

Thrugelmir

All lenders will detect when the CCJ when checking the Trust Registry.