My chances of a decent mortgage?

assimilate_2

Hi all,

I would like to ascertain how likely my chances are in acquiring a competitive mortgage through other peoples insight and experiences.

My situation, im 26 years old full time employed with a salary of £32,000 per anum, i have now been at my new job for 4 months, i own the freehold of my property with a value of approx £3750,000 - £400,000, and looking to remortgage for £150,000 which is a very low LTV.

Now with the above being said i don't have a great amount of history, i have 2 bank accounts with an average age of 24 months, i have virgin media broadband, sky and bt which i have had for years and always paid on time, however sky don't report back to any credit agencies and bt don't use experian.

The worst thing is i have is a ccj on my account which belongs to my brother dated back in feb 2014 which i only recently found out after checking my file as i intend to apply for credit, it seems to be a car fine related charge of just £175, however i will not be paying it, and unlikely to have it set a side as it will cost a fee to do so, plus its over 3 and a half years old.

Now i am aware i am able to have a notice of correction applied to my credit file which i have done(albeit at a restriction of 200 words) but i wanted to also provide an elaborate explanation of this upon application to mitigate the severity of it being there.

Do you believe it will hinder my chances of acquiring a decent mortgage given its age and small amount, along with my other history?

Cheers

cjmillsnun

Anything unpaid could spook a lender. I think you need a specialist broker.

amnblog

Yes, it will reduce your options.

Your lending requirement may be a little rich for the income.

[Deleted User]

assimilate wrote: »

i own the freehold of my property with a value of approx £3750,000

Downsize? Is there anything under a couple of million that is habitable in your vicinity?

ACG

£150k is probably the very maximum, I think you may be stretching it a little too much.

If you clear the £175 you will have a better chance of getting a normal rate. Dont do a notice of correction, it wont do any good, and can cause delays. If you do not clear it, then you will still have options but less of a chance of being accepted at normal rates.

In either case, you will be able to get a Mortgage the issue is just the rate you will pay and how much you can get.

assimilate_2

Deleted_User wrote: »

Downsize? Is there anything under a couple of million that is habitable in your vicinity?

Downsize? i don't live on my own, no... i live with 3 dogs, 2 cats, 6 budgies and a rabbit, oh.. and a horse out back :rotfl:

ACG wrote: »

£150k is probably the very maximum, I think you may be stretching it a little too much.

If you clear the £175 you will have a better chance of getting a normal rate. Dont do a notice of correction, it wont do any good, and can cause delays. If you do not clear it, then you will still have options but less of a chance of being accepted at normal rates.

In either case, you will be able to get a Mortgage the issue is just the rate you will pay and how much you can get.

I have submitted a notice of correction in the interim period of it getting removed, i have raised a dispute with experian and they have stated it wiill take up to 28 days to get resolved, i wouldn't be happy in paying to get it removed considering it was not mine.

ACG

If your getting it removed thats fine. I was working on the assumption that it would remain...If it is getting removed, make sure it is removed from all 3 credit agencies.

When you have a credit check carried out, it knows how to read numbers and dates. So it can make an automated decision most of the time. It can not read a notice of correction, so it will automatically spit it out for a human to make a decision. It will not alter the outcome, but it will likely delay things - which is why I suggest not having a Notice of correction. It also does nothing. Lenders take the view that if the ccj/default is there, it is correct otherwise it would have been removed.

assimilate_2

HI ACG,

When i say i am in the process of having it removed, that is against the credit reference agencies, not the court as that is with expense, is there any way around paying that fee going to court ?

Experian have stated all lenders are obligated to read the notice of corrections.

I have since asked santander and nationwide if additional documents can be submitted with application for them to review before making a decision, they have replied stating when applying online there is a form to upload all documents along with application for review and before any credit checks are done.

kingstreet

assimilate wrote: »

The worst thing is i have is a ccj on my account which belongs to my brother dated back in feb 2014 which i only recently found out after checking my file as i intend to apply for credit, it seems to be a car fine related charge of just £175

I suspect you are referring to a speculative invoice issued by a private parking company which was ignored and a judgment issued when no-one appeared in court to defend it?

A fine issued by a public body (Police etc) would be issued in a magistrates court and would be increased due to non-payment with bailiffs eventually becoming involved.

Your brother? Was he the registered keeper of the vehicle or were you?

assimilate_2

Kingstreet, that's it yes, bailiffs were involved at some point not that im concerned about them, and yes it was in my brothers name, do you think it could have been applied to both of us? my brother is careless and won't bother checking considering its years old.

Wake_up_call

If it is in your brother's name then why was the CCJ registered in your name?