Mortgage potentially becoming declined

Willwak90

Hi all firstly I am very new to all this so please be patient. I applied for my mortgage about 3 months ago now, from my own bank, Natwest. I have 1 ccj dated December 2010 for £1125 so quiet old it is unsettled might I add. Also one default dated December 2012 for £115. I have been told by my mortgage advisor that the ccj is causing problems and the underwriters aren't looking too good. Could someone please advise me on what they would do in my situation. Are there services for ccj mortgages? Are they safe?? Any previous experiences would also be appreciated.


I am in the forces and have quiet a good income. I also have between 15% to 20% deposit depending on the property value. The one I have offer excepted for I have 20%.


Thanks in advance.


Will

tomtontom

Any reason why the CCJ is unsettled? You must appreciate how that looks to a potential lender.

National_Debtline

Hi Will


You presumably have the means to settle the CCJ using the deposit funds you have saved up. Not doing this would make your risk of being declined a lot higher.


It seems to me that you shouldn't be looking for a CCJ-friendly mortgage provider (such mortgages may be available, but not at competitive rates) - you should be settling the CCJ balance ASAP in order to minimise its impact on your creditworthiness. If your mortgage advisor hasn't already spelled this out, they should be doing so.


Dennis
@natdebtline

Willwak90

Hi the reason for the ccj unsettled is 3 fold

1. I had no recollection of the ccj until around 6 months ago

2. I now only have a short period before the ccj is removed from my credit file

3. Having done some research I found that this was given against me for a personal injury claim against me which I had no recollection of and rightly or wrongly don't agree with the circumstances.


I can only presume that having been in the military all corresponding info was sent to my previous address around 2009.

If I settle this ccj will I have a extremely higher chance of being accepted?? Or will it only be slightly if that is the case I will wait until this clears.

My credit score isn't really too bad (out of 999 experian) however I'm still classed as poor credit. I assume this is due to the ccj??

Verix

It's been mentioned on this board 100's of times but it bares repeating that you Experian 'score' doesn't mean anything. Nobody can guarantee that paying off the CCJ will get you through with Natwest specifically but it will certainly cast you in a better light. Lenders will not really be interested in your reason for not paying the CCJ, they will just see it as unpaid.


If you are not keen on getting the CCJ off I think you should look in to how much extra the mortgage repayments may be with a mortgage lender specialising in adverse credit. If you are not happy with the repayments at this level then perhaps wait til next year?

ACG

CCJs and defaults that old can be overcome. There is the potential that a high street lender may accept it but if not then it would be a little above.

Speak to your broker about alternatives or ask another broker if you are not getting the answer you want.

Willwak90

ACG and VERIX

Thanks for the advice I am currently negotiating with Natwest as to if I use £1000 of my deposit to settle it would this be adequate to proceed with my mortgage.

If this is not the case then maybe a mortgage broker to solve the situation will be my solution.


Thanks for all the advice

kingstreet

Were you CCJd as a result of a motor insurance claim?

Willwak90

Well yes and no.

At the stupid age of 17/18 (now 26) I drove my car for one week uninsured, stupidly I know however we all live and learn.

I had a very slow speed knock 5/10mph into the back of a car. I appeared in court and paid all fines asked. However this ccj is new to me and when I rang the county court I was told that the named person who was involved in the accident had claimed for personal injuries however as previously stated this is new news too me.

I can only presume with me being in the military all letters where sent to my old address.

[Deleted User]

If the CCJ was served to an address you were not resident at, you may be able to get it removed if you can prove you had moved on. You have to apply to the court to get it set aside.

rtho782

The CCJ might vanish from your credit file but CCJs do not become statute barred, you could still be chased for payment.