Best Mortgage Rate for CCJ Holder?

nsholton

I have a CCJ that's now finally been settled. I am in the process of appealing it in the hope that it might be set aside, but wanted to know which companies offer the best interest rates for a mortgage if you have a CCJ.

Natwest have turned me down because of the CCJ so its unlikely that any high street bank will give me a mortgage. The best rate I've found so far is 9.4% which as a first time buyer is very high!

Any help would be greatly appreciated!!

herbiesjp

"Best" - is all relative.

It will depend entirely on your own situation as to which lender is the best for you. The 9.4% deal could be the best for you, however without knowing any of your details if would be difficult for anyone to say. Having said that the 9.4% deal does look very high.

What figures are you looking at?

nsholton

Hi,

I wanted to borrow approx. £165,000 with 5% deposit. I earn £40k per year and am a first time buyer. Wanted a repayment mortgage and that's all I know at the minute.

Any suggestions?

Thanks

herbiesjp

Do you have any other debts at all that you pay monthly?

When was the CCJ registered and when was it satisfied?

How much was the CCJ for?

At 95% at high street rates you are already limiting your choice, if you have to go down the sub prme route due to the CCJ, you will be further limiting your choices. Do you know if the current deal offered to you has a HigHer Ledning Charge?

nsholton

I have a loan for £17k which I pay monthly at a rate of £500.

No other outgoings.

Th CCJ was settled last week but was listed on my credit file in January 2007. It was for £1700.

What is sub prme route?

Thanks

herbiesjp

The £500pm loan will reduce your "useable" income by £6000 - so you could use £34,000 to get a mortgage agreed

Was the CCJ an error then, if you are looking to get it set aside? Have you put a notice of correction on your credit file?

A sub prime mortgage is one for people with adverse credit history registered against them, such as CCJs or defaults or missed mortgage payments

kevinchapman82

9.14% is very high, I'd expect it to be somewhere between 7-7.5%. But I would fully investigate getting the CCJ removed if it was recorded in error, as it will save you a lot of money.

nsholton

I am applying to try and get it removed as the reason I didn't know about the CCJ until recently was because I was unaware I owed money and was not living at the address to which the claim papers were sent. Unfortunately the creditors letters and court papers were signed for and acknowledged by my mum who was trying to be 'helpful' but she never told me or passed the letters on so I don't think my chances of having it removed are very good.

If I cant get it set aside I'll get certification that its been settled, but I think that still prevents me from getting a regular mortgage doesn't it?

Are there any particular mortgage companies I should be looking at?

Thanks

herbiesjp

Your best bet would be to get an up to date copy of you Experian or Equifax credit file. YOu can then show that to a whole of market adviser and explain the scenario around the CCJ in detail.

Some lenders may well be willing to listen to a good explanation and consequently offer you high street rates. This is normally where a good adviser is worth their weight in gold, as they can sometimes be the difference between sub prime rates and normal rates

kevinchapman82

As an example, I got an offer out from Abbey yesterday for someone who had a CCJ from a year or so ago, but they had a good explanation for it and Abbey were happy to lend on their normal rates.