Mortgage after paying off defaults & CCJ

NorSharPei

Hi,
I'm in the process of selling my house which has a good amount of equity in. My plan is to use some of the equity to repay a CCJ and a few defaults (total of c.£10k) then rent for a little bit while I look for somewhere else to buy.
My question is how long would it take before I'm likely to be accepted for another mortgage? I will have repaid all of my debts, defaults and CCJ and will likely be looking at around 70% LTV.
Thanks in advance!

GMS

What dates are the defaults and CCJ?

NorSharPei

The CCJ is from March 2014 and the defaults are all around 3-4 years old. As they will all have been repaid will that make a difference?

amnblog

£10,000 of defaults is substantial.

How much was the CCJ?

Mortgage_Mark_2

NorSharPei wrote: »

The CCJ is from March 2014 and the defaults are all around 3-4 years old. As they will all have been repaid will that make a difference?

It will make a difference, you may find you have no options until they are all older than 2yrs. Either way, speak to a broker experienced in adverse-credit, you may have options not available direct.

Also, don't look at rates online/in bank windows, they may well not be available, and don't be surprised if the service timescale is not great with whichever lender you approach.

NorSharPei

Thanks for your help. The CCJ was for £2,000 and is included within the £10,000.

What do you mean by the service timescales?

amnblog

Unless you want to put more down to get a rate north of 5% you sound like you are 12 months short of any options.

Mortgage_Mark_2

NorSharPei wrote: »

Thanks for your help. The CCJ was for £2,000 and is included within the £10,000.

What do you mean by the service timescales?

I.e. time from application to offer, time to assess documents sent in, accuracy of assessments etc.

It's not going to be painless, and it's not going to be quick, if you have options.

NorSharPei

I see - thanks.

So it would be c2 years from the date of the last default that my options would be a bit better or 2 years from repayment?

If it's 2 years from the date of default that isn't actually too terrible as by the time my property sale has gone through it would mean looking at only around 6 months in rental which, while not ideal, isn't awful!

Mortgage_Mark_2

If lenders have a time requirement, it's almost certainly from the date of registration, not satisfaction.

Thrugelmir

I'm sure you fully understand the detrimental damage that a CCJ will cause not only to to your credit record but the way in which you as a person will be appraised. A CCJ is really viewed as a last resort collection measure. What mainstream lenders are going to need to see is long period of good personal financial conduct.