First Time Buyer & CCJ

aimeeeve

Hi everyone,

I was hoping I might find someone who has been in a similar situation to myself or someone who could give me some advice.

My partner and I are currently saving for a deposit with the hope to purchase our first property early next year, however my partner has some bad credit history from his younger days - a CCJ from August 2013 and a couple of missed payments (from the same phone bill that turned into the CCJ) The missed payments will leave his credit file in February 2017 as it will have been 6 years. He has no debt at all but obviously quite a low credit score as he has only been building it for the last year with his first credit card and has the defaults and CCJ on there. I have a 999 credit score on Experian and good scores on both noodle and clearscore but will have around £7,500 remaining on a loan around the time we would be looking to apply.

What I want to know is if anyone thinks there would be any chance of us getting a mortgage with our situation? It would most likely need to be a 95% mortgage as we will only have around 15k saved and in the area we live in that won't go far as a deposit! My partner's salary is around £31,000 but he works as an electrician and hasn't bought home lower than around £3000 a month so far this year and is on track to earn well over £40,000. My salary is around £24,000 but with commission am making closer to £26,000. Our combined outgoings are around £900 a month so affordability wise we have plenty of spare money to pay for a mortgage and property, I'm just worried the CCJ and my loan may cause us problems actually getting a mortgage.

Thank you in advance for your help and reading my very long post!

ACG

How much was the CCJ for?
Has it been satisfied?

aimeeeve

It was for £900 and yes was satisfied nearly a year ago.

ACG

With a 5% deposit im not sure I would be confident but there is maybe 1 or 2 lenders who would consider it.

sindakit

I have recently satisfied a CCJ (September) and applied for an AIP through Halifax (soft credit check). I had tried before the CCJ was satisfied but was declined, however this time I tried and was accepted.

I basically used that as a benchmark for my mortgage credit worthiness. It doesn't impact your score to check and you do are not obliged to commit to Halifax - perhaps try that and see how that turns out. You can try in Feb to see if the situation has improved.

ACG

With a 5% deposit?

kingstreet

I think sindakit is assuming Halifax will continue with a 95% offering when HTB - MG ends in a couple of months.

Maybe they will... maybe they won't.

Who knows?

sindakit

ah yes, sorry, I was looking at HTB which may be different for you. The Halifax soft check AIP should be a still valid method to score against though regardless of situation.

kingstreet

sindakit wrote: »

ah yes, sorry, I was looking at HTB which may be different for you. The Halifax soft check AIP should be a still valid method to score against though regardless of situation.

No. It's the same for everybody.

HTB Mortgage Guarantee ends on 31 December 2016. We do not yet know if Halifax will offer 95% products from 1 January 2017 onwards.

If they choose not to, a Halifax agreement in principle will probably simply require corrective action to proceed if you attempt to enter a 95% mortgage when none are available as "HomeBuyer Special" will no longer be an option.

ap1985

I would get some advice from a broker. However, i would personally wait until the late payment has cleared off my credit file. The CCJ may cause problem with a 5% deposit, however with a higher deposit you may stand a chance.