RTB Offer / CCJ

LilPretty

Hi all,

i have received a right to buy offer from the council - property valued at £310k, discount offered - £103k, mortgage required - £207k.

I have a ccj registered in 2012 and settled in 2014 dec.

I have no credit cards / no pay day loans/ no store cards - basically credit requirement, am self employed with an income of £60k

The issue is - my broker has not been able to get me a mortgage for over 4 months - he has given one excuse or the other and today - he has adv that halifax turned it down due to dates of the ccj / settlement.

ie settlement was made in dec 2014 and seems it was settled cos i wanted to apply for a mortgage.

for over 4 months - the broker has been going around in circles - am i missing somethin here?

is it impossible to get a mortgage with a settled ccj?

has anyone been in this position, can they kindly advise on how to progress this?

I am so frustrated

thanks in advance

Thrugelmir

LilPretty wrote: »

ie settlement was made in dec 2014 and seems it was settled cos i wanted to apply for a mortgage.

To be blunt a CCJ is bad enough on a credit file. Two years to settle. Then 9 months later mortgage application for £207k. Which suggests a reasonable household income.

You are paying the price of your own actions. I'm afraid to say.

LilPretty

does this mean that once you have a ccj - you can never get a mortgage?

csgohan4

Takes 6 years to fall off your credit file.

Maybe engage a broker who is experianced in Adverse credit. But it's not looking likely I'm afarid, especially given the short gap in settlement and mortgage application.

Perhaps use the time to save a bigger deposit and build your credit history up. Get a credit card and pay it iin full every month.

Thrugelmir

LilPretty wrote: »

does this mean that once you have a ccj - you can never get a mortgage?

Not at all. Time heals as the saying goes. Over time more doors will open to you.

I was merely stressing the view taken by what would regarded as mainstream lenders. There's always something willing to conduct business at a price on their terms.

David_White

If your Broker has taken 4 months without success I'd suggest speaking to someone else as you would likely find a solution in the sub-prime mortgage market.

Good luck

mrginge

Isn't it grand that some higher rate taxpayers can access a 100k windfall while many on minimum wage struggle.

Praise be for the RTB discount scheme.

DandelionPatrol

LilPretty wrote: »

Hi all,

i have received a right to buy offer from the council - property valued at £310k, discount offered - £103k, mortgage required - £207k.

I have a ccj registered in 2012 and settled in 2014 dec.

I have no credit cards / no pay day loans/ no store cards - basically credit requirement, am self employed with an income of £60k

The issue is - my broker has not been able to get me a mortgage for over 4 months - he has given one excuse or the other and today - he has adv that halifax turned it down due to dates of the ccj / settlement.

ie settlement was made in dec 2014 and seems it was settled cos i wanted to apply for a mortgage.

for over 4 months - the broker has been going around in circles - am i missing somethin here?

is it impossible to get a mortgage with a settled ccj?

has anyone been in this position, can they kindly advise on how to progress this?

I am so frustrated

thanks in advance

What you are missing is that your entire presentation makes you look an extremely unattractive lending proposition.

You start with an income of £60,000 which is good but it goes downhill from there, in such a way that the fact that it is so high counts against you!

A CCJ is not good but people who have settled CCJ's do get mortgages. Yours took 2 years to settle which does not look good. If I were an underwriter I would be asking what kind of a mess you got yourself into which you took you 2 years to settle on a salary of £60,000.

The cherry on the cake is that you want a mortgage of £207,000 which is perfectly reasonable on £60,000 income. But that is exactly the price of the house minus the discount, so you are putting in absolutely no money of your own whatsoever. So if this all goes wrong and you get repo'd, from a mortgage lender's point of view, you are not going to be hurt by losing any money. In other words you are a person of straw, with no wealth to show for your £60,000 income.

If you want a mortgage for this, I would say that the climate would become more favourable if you put in £10,000 of your own and preferably £20,000.

As I say I am not an underwriter, I would be giving a person

• on £40,000
• with the same CCJ history
• asking for a loan of £197,000 [putting in £10,000]
• on a house at the the same price and discount

a mortgage ahead of you

LilPretty

Dandelion - THANKS alot for the detailed breakdown.

It took two years - as there was a dispute between myself and the creditors. Also i was on a serious financial downhill... i had over £40k debts - ALL paid up.

My earnings have just gone up - God smiled on me @ last, a change in career and al. so whilst paying up all my debts, cleaning up my mess, i was still saving and earning not much

I am fine to drop a deposit - I have savings to that effect, I did ask the broker if I should add some money to it - and he said no.

I am able to contribute towards it.

@mrgringe - I have had my council property for 20yrs+... started from nothing - went through a repossession and over 5 eviction orders..

so pls dont judge me - i am only able to even consider it after 20yrs+.. so u may think i ought to be homeless or not entitled to it - but I have paid my dues.

@ Dandelion - thanks again - as I have some savings towards it - do you advise I make a fresh application? or what? no searches have been made on my credit file till date.

DandelionPatrol

LilPretty wrote: »

Dandelion - THANKS alot for the detailed breakdown.


I am fine to drop a deposit - I have savings to that effect, I did ask the broker if I should add some money to it - and he said no.

I am able to contribute towards it.

...

@ Dandelion - thanks again - as I have some savings towards it - do you advise I make a fresh application? or what? no searches have been made on my credit file till date.

Phew, thought you might take the hump at that.

Obviously [to me], your broker ain't that bright. So I suggest you go around a few brokers, outline what has happened much as in your opening post - and look for one who says similar to what I said - particularly about putting your own money in. Then work with that broker.

Bear in mind I am not a broker, not connected with the industry, so you need to take your own view on what I am saying here and what I said in my previous post.

mrginge

LilPretty wrote: »

@mrgringe - I have had my council property for 20yrs+... started from nothing - went through a repossession and over 5 eviction orders..

so pls dont judge me - i am only able to even consider it after 20yrs+.. so u may think i ought to be homeless or not entitled to it - but I have paid my dues.

What part of my comment was directed specifically at you or your circumstances?

Where did I judge YOU?

Where did I say I thought you ought to be homeless?

Where did I suggest that you have not 'paid your dues'

And you are wrong in that I DO think you are entitled to it. Because that is what the rules say.
However, there is a difference between an individual being legally entitled to something and the morality of a society that advantages those who already have enough over those who have nothing or very little.

Perhaps, during your hard times you would have preferred it if all the available social support and finances had been given away to those in the position that you now find yourself?