FTB requesting advice.

ManWantsHome

Hi all!

I've been reading through the mortgages section of this forum for a few weeks and have picked up a lot of useful knowledge, so first of all, thanks for inadvertently helping me and probably many like me.

I'm looking to apply for a mortgage and buy my first home in the next few months (hopefully). I thought I should theoretically be ok even if I have to start on a H2B scheme such a SO, which I have already applied and been accepted for in my area. There's just 1 small (massive?) problem which I'll go on to talk about after I tell you some or my details.

I've been saving for a deposit for about 6 months now and have about £4500, I know it's not a lot but it would get me a 5% deposit on a SO home relatively close to where I want to be. I've also been paying £300-£600 a month off of my debts. £1700 still to pay on loan (£90 a month DD) and £2200 to pay on a 0% CC.
My salary is £35,500 with a rise coming in Jan 2017 to £37,000. I get around £3,000-£5,000 in overtime from October-April each year and other overtime scattered throughout the rest of the year, £2,000 is an estimate but this isn't guaranteed. I currently live at home with my mum and sister. I have a 2 year old son that I don't live with so pay monthly maintenance for him.

I've also been cleaning up my credit profile using Experian to see my report.
I have no searches in the last 6 months.
All bills paid on time for as far as it will go back.
Utilising just under 50% of available credit.
6 positives and 0 negatives in total.

After reading up on here I've seen others were advised to check with all 3 of the main CRA's, so I did. CallCredit although the score's a lot lower than Experian (I know this doesn't matter), the details are all the same. Plot twist. We go to Equifax... a CCJ! (£1900 from March 2013) which isn't showing on the other two. I emailed them to get it removed and they advised me to get in touch with the court. I did and it turns out it is for my sisters unpaid rent at a previous address from 2011 that I was guarantor for. I honestly had no idea about this and she claims she didn't owe anything when she left and didn't hear anything at the time about going to court. This of course doesn't help my situation.

My target- to buy my first home, ideally 2 bedrooms, rather a house but a flat looks more viable. I'd probably have to move about 20 minutes drive north of my current town as house prices are high here, cheapest flat to buy outright is £150k for a 1 bed. The town 20 minutes north you can get a flat for £120k and I've seen many SO flats there starting at around £40-50k for a 30-40% share, with about £200-£300 to pay in rent and charges.

Sorry for the long post but I just wanted to give a full picture. I want to get in touch with a broker but first wanted to come here for advice.
Is it realistic at all to get a mortgage with that CCJ? Even though it's nothing to do with me, I know they don't see it that way.
I know my LTV is very low too, probably 5% for the sort of place I'd go for. I could keep on saving but I'm pretty desperate to move out soon.
I just don't know what to do. Please help!

kingstreet

The judgment was handed down presumably because you failed to defend it.

You should be looking to have the judgment set aside, so you can then seek to defend it if the claimant re-files.

missyp123

I too have been looking at SO but have decided against it for now.

I do think you need to look into the ccj and reduce the amount of debt you owe too.

My friend moved into her SO house at the end of last year and she HAD to clear £300 off a 0% credit card. This was the only debt they had. So you may struggle with the amount of debt you have.

Have you listed your credit commitments into a affordability calculator to see how it could affect you? I know their not always 100% but may give you an idea.

Also don't forget you will need your fees plus maybe extra money if your mortgage payments are more for the first month.

It will all be worth it in the end