Can I get a mortgage? Just discovered a CCJ. 30 July 2017 at 8:49PM in Mortgages & endowments 19 replies 1.6K views

nicolanicola

We are looking to buy a house as I'm pregnant and our house isn't big enough. I have a perfect credit history and currently have two mortgages. One is a consent to let - I have tenants in it. The other is the property I live in. I have 2 credit cards with 0 balance.

I recently found out a parking company registered a CCJ against me last month. I'm about to apply to have it set aside. However I know this can take months.

Will I be able to get a mortgage with the current CCJ problem?

Thrugelmir

Besides the CCJ. You will have affordability hurdles to overcome potentially.

nicolanicola

Thrugelmir wrote: »

Besides the CCJ. You will have affordability hurdles to overcome potentially.

No affordability will be fine it really is the CCJ I'm wondering about.

ACG

How much is your deposit (as a percentage of the purchase price)?
General rule of thumb, 15% deposit and you will be fine. I doubt there will be high street options due to how recent the CCJ is but there will be options.

Rates would be between 2.5%(ish) up to around 5% (ish) depenidng on the details. I would speak to a broker though as your options will be limited - unless you wait until the CCJ is removed.

nicolanicola

ACG wrote: »

How much is your deposit (as a percentage of the purchase price)?
General rule of thumb, 15% deposit and you will be fine. I doubt there will be high street options due to how recent the CCJ is but there will be options.

Rates would be between 2.5%(ish) up to around 5% (ish) depenidng on the details. I would speak to a broker though as your options will be limited - unless you wait until the CCJ is removed.

We can go up to 15% no problem. If we wait til its removed, I'll likely be about to have the baby or have had it. So would rather proceed now and get it done before it arrived and whilst I'm still pretty mobile.

Oh and I want to let this house out ideally rather than sell it. So get a letter from an estate agency saying the house will be easy to let (a broker advised us of this before). Another potential issue is it's only going in my name but the deposit is coming from my partner. He has bad credit so we're just going to put it in my name.

ACG

You are probably going to struggle with a recent CCJ and single application when the deposit is coming from someone who (presumably) lives with you and will be living with you going forward AND you also want a lender to accept CTL.

Probably easier to do it in joint names, you both have bad credit so may as well try to find a lender who will acept the lot. I think that would be easier than a single application.

Have you accounted for the additional stamp duty?

nicolanicola

ACG wrote: »

You are probably going to struggle with a recent CCJ and single application when the deposit is coming from someone who (presumably) lives with you and will be living with you going forward AND you also want a lender to accept CTL.

Probably easier to do it in joint names, you both have bad credit so may as well try to find a lender who will acept the lot. I think that would be easier than a single application.

Have you accounted for the additional stamp duty?

Well my partners credit is quite bad - he has 2 defaults. I have no missed payments.

Yes the stamp duty will be 3% for us

ACG

I still think a joint application will be easier.

nicolanicola

Yes maybe you're right. I just spoke with a mortgage advisor and he reckons we have no chance of getting a mortgage with a recent CCJ

ACG

Find a new broker, maybe one that specialises in adverse credit is best.
15% deposit you will be fine.

nicolanicola

ACG wrote: »

Find a new broker, maybe one that specialises in adverse credit is best.
15% deposit you will be fine.

Thanks. Shall I just google advert credit mortgage broken in my area?