Defaults, CCJ and I want a Mortgage

Jambo5

Hi all, I am looking for some advice and hopefully cheering up as my credit rationg is poor. Here is what happened.

In 2007 I was 20 year old and working as a self employed Joiner.

By October 08 I felt the reccession most and could not find work.
Problem being at time I had a car on finance and multiple store cards from when I was 18. In the October I signed on dole and recieved £190 a month in Jobseekers Allowance. Ironically £190 was exactly what my car finance and insurance was per month.
It was a double edged sword as I needed the car incase work came in but in never did. Luckily I was living with parents now rent free but split up with my partner of a few years and I admit I kinda give up. I found a little work eventually in early 09 and made what payments I could but by this time the damage was done.

So, in August 09 I joined the Army. By this time I had 5 defaults and 1 CCJ. By June 2010 I had paid all debt off in full and all were marked as 'Satisfied'. But this is also around the time somebody advised me to take out a Payday loan. At time all young Soldiers seemed to do it and I was under impression that it would improve my credit score. Some 22 Payday loans later I take out the last one on 01/05/12. Yes I am a Idiot!

I write this now aged nearly 28 now happily married in my married quaters provided by the Army. We are just like everybody else and want to buy our first house. I just can't help feeling like some sort of criminal. And this depresses me.
I have done some research and know that Defauts and CCJ's will fall off my Record after 6 years from the date they were added.
I did sign up with Experian and Equafax a year or so ago but cancelled. I have recently just signed up again with Noddle as some defaults are due to fall off.

And......some of them have. Three of them have gone. One of them is due to go in January 15 and the CCJ in July 15. So that should be me clear on that front. But what remains is them Paydays loans and upto 5 missed Payments from my car finance which I did'nt Default on and that was 5 years ago.

I got a Barclaycard to try and rebuild my score. I also have had a phone contract for 5 years and never missed a payment. I also have ran this house smoothly I never missed any bills for the last 15 months. Yet my score is 522 with Noddle.

I earn £27,000 a year but the wife makes less at £15,500, her credit score is 960. We have a deposit of around £10,000.

My questions are,

How long will it take for my credit score to improve after the final CCJ is removed?

She can only get a mortgage for £69,000, with this new help to buy scheme will she be able to get a bigger mortgage with the government giving more Equidy?

If she gets a mortgage by herself will my wage at all play apart in the size of the mortgage?

Does anyone have advice on Mortgage Brokers?

Or any advice on Rent to buy?

Any advice would be greatly appreciated and as you can tell i'm not so convident that when my Final CCJ is removed and what feels like the longest 6 years of my life is over that I will be approved. I thankyou in advance for any advive,

Cheers Jamb05

[Deleted User]

Jambo5 wrote: »

How long will it take for my credit score to improve after the final CCJ is removed?

It doesn't work like that. Your score is made up and only seen by you. The longer you maintain a good credit history and the longer ago the negatives are, the more psitively lenders will view you.

Ask family or friends for a recommendation for a mortgage broker. They will be able to guide you as to whether you have any chance of a mortgage right now, although it looks doubtful on your incomes and with your current history.

kingstreet

Help To Buy doesn't provide an unaffordable mortgage.

The equity loan (20% on a newbuild only) will mean you have a bigger deposit though.

Obtain all three versions of your credit file and put them in front of an independent mortgage broker. As different lenders take information from different CRAs, you may be able to apply earlier to a lender which takes date from the CRA which shows you in the best light.

Either way, you'll be able to roadmap/timescale what you can do and when.

Jambo5

Thanks for your relies. Still not filled with confidence and all I know is that going to a Broker that there is a chance but the interest rates will be a lot higher. All my friends and family have Mortgages with High Street lenders. July 2015 all adverse credit will be gone. And what it still sounds like after waiting for 6 years for them to be removed that it still wont be good enough....gutted!!

There was one bit of hope. A lad I work with just got excepted for a joint mortgage with his wife. She like my wife was on about 16k and he like me is on 27k.
His credit score was 960 but had a 33 pay day loans on it...his Wife had a default on her report which was 4 year old. Halifax excepted them. And they only had 5% deposit.

I hope so badly that when all the bad things drop off that my credit rating will then be good enough along side the wife's perfect rating so we can get our first house.

Point to note...Halifax don't see pay day loans as bad thing...so it seems?

Keep the advice coming, cheers for your time

hoops77

First off no bank see a payday loan as a good thing no matter what they tell you.
Was in similar situation to you and spent three months repairing my credit file.
Had defaults removed on the basis that some company's couldn't find the orignal agreements.
Challenged ccjs and won etc etc
I now have one default showing for £218 which is fully satisfied and a 803 score.
Write to the creditors you have nothing to lose

glentoran99

melhuish77 wrote: »

First off no bank see a payday loan as a good thing no matter what they tell you.
Was in similar situation to you and spent three months repairing my credit file.
Had defaults removed on the basis that some company's couldn't find the orignal agreements.
Challenged ccjs and won etc etc
I now have one default showing for £218 which is fully satisfied and a 803 score.
Write to the creditors you have nothing to lose

Im interested in this part, how did you go about this?

Nasqueron

Jambo5 wrote: »

Thanks for your relies. Still not filled with confidence and all I know is that going to a Broker that there is a chance but the interest rates will be a lot higher. All my friends and family have Mortgages with High Street lenders. July 2015 all adverse credit will be gone. And what it still sounds like after waiting for 6 years for them to be removed that it still wont be good enough....gutted!!

There was one bit of hope. A lad I work with just got excepted for a joint mortgage with his wife. She like my wife was on about 16k and he like me is on 27k.
His credit score was 960 but had a 33 pay day loans on it...his Wife had a default on her report which was 4 year old. Halifax excepted them. And they only had 5% deposit.

I hope so badly that when all the bad things drop off that my credit rating will then be good enough along side the wife's perfect rating so we can get our first house.

Point to note...Halifax don't see pay day loans as bad thing...so it seems?

Keep the advice coming, cheers for your time

Jambo - please understand the credit "score" is 100% complete, total, utter nonsense - the CRA try to trick you into giving them money to access this "score" but NO LENDER sees it, only you and the CRA see it - the CRA do not lend you money do they so who cares how they rate you?

Lenders have their own lending criteria which includes salary, information from your credit report (defaults, late payments etc), lending targets and internal scoring - having a 999 rating means nothing to them.

Jambo5

Melhuish77 . Ok pay day loans may not be good but it did not stop him and his partner getting a Mortgage.

As explain above, all my debts, defaults and one CCJ were paid of in Full in the summer of 2010. They have been 'Satisfied' for 4 years. And a few of the defaults have already dropped off as 6 years has elapsed!! Now I did write to all the creditors a few years ago explaining my situation, i also contacted the court and they said I could appeal the CCJ but it would cost £80.
Now again explain before, the very last thing to drop off my credit report is my CCJ in July 2015. My last default falls of in Jan 2015. So in your opinion, Is it really worth mr writing again to the creditors?

All I want to know is when last CCJ falls of next July will my credit then be exceptable to obtain a mortgage? As stated a bloke I know and his wife have just been excepted by Halifax with one Default and many Pay day loans on their records.

I however come July 2015 will not have any adverse credit on my credit report.

Jambo5

Can't believe how stressful this is! If only I could turn back time

Gonzo1987

Jambo5 wrote: »

Thanks for your relies. Still not filled with confidence and all I know is that going to a Broker that there is a chance but the interest rates will be a lot higher. All my friends and family have Mortgages with High Street lenders. July 2015 all adverse credit will be gone. And what it still sounds like after waiting for 6 years for them to be removed that it still wont be good enough....gutted!!

There was one bit of hope. A lad I work with just got excepted for a joint mortgage with his wife. She like my wife was on about 16k and he like me is on 27k.
His credit score was 960 but had a 33 pay day loans on it...his Wife had a default on her report which was 4 year old. Halifax excepted them. And they only had 5% deposit.

I hope so badly that when all the bad things drop off that my credit rating will then be good enough along side the wife's perfect rating so we can get our first house.

Point to note...Halifax don't see pay day loans as bad thing...so it seems?

Keep the advice coming, cheers for your time

If you go to see an independent financial advisor they can look at all the mortgages across the market and find and advise which would be best for you. It's worth speaking to one, and you might still get a mortgage with a high street lender - I'm not really sure why that matters though...

kingstreet

Jambo5 wrote: »

all I know is that going to a Broker that there is a chance but the interest rates will be a lot higher

That is not necessarily the case.

We are newbuild specialists and have done about three hundred cases this year. Not one was with an adverse credit lender as some high street lenders will accept old/historic adverse and at normal rates.

if you are offered a product by a broker and it sounds too high, say no and if necessary, find another broker.