CCJ and getting a mortgage

Alliecal

Looking to get a bit of advice after spending days looking over mse and other websites... needless to say I’ve been getting mixed reactions and it’s left me feeling worse than before.

My partner and I are hoping to get a mortgage early next year (Feb ish) and have a 150k deposit.

My worry is my credit, I have a CCJ which is 3 years old (due to burying my head in the sand during a rough period) this is currently being paid back and will be paid off before we apply for any mortgage. I’m aware that CCJs appear on your record for 6 years (I’m hoping the fact it’s 3 years old that might help if only slightly)
I’ve read all over the internet that the bigger the deposit the better, obviously our deposit being quite big isn’t going to make the lenders oversee this issue.

I was wondering how the whole system works, if my partners rating is good would mine bring his down? Would it equal out? Anyone had any experience in this sort of thing/ been through similar situation?
Any advice, good or bad would be greatly appreciated as I’m currently pulling my hair out as to what to do.

ACG

First thing first, this CCJ is very unlikely to stop you getting a Mortgage. A £150k deposit will pretty much trump anything else.

After that it will just come down to the rates, but assuming you are looking at properties valued at less than a million, there is no reason why you should be paying extortionate rates, maybe 2-3%.

Speak to a broker and I am sure you will be fine.

Tomg84

As mentioned above - speak to a broker but you've got a massive deposit which makes things much easier. You can stop pulling your hair out or you'll become bald.

Alliecal

Thankyou for your help, I have heard that our deposit will go in our favour but a friend of mine recently applied for a mortgage and was refused due to 0 credit rating, she said they didn’t even ask if they had a deposit, so it got me a little worried. Will continue to work on improving my rating where I can and hope for the best... _pale_

Serves me right for trying to ignore my problems in the past :eek:

amnblog

With £150,000 deposit and CCJ you are still paying off, 'credit rating' is not the focus here.

The bottom line is there are Lenders that have an appetite for this kind of lending, on sensible rates.

A case for a mortgage broker that they would expect to place.

Your friend's experience is not relevant.

ACG

Alliecal wrote: »

Thankyou for your help, I have heard that our deposit will go in our favour but a friend of mine recently applied for a mortgage and was refused due to 0 credit rating, she said they didn’t even ask if they had a deposit, so it got me a little worried. Will continue to work on improving my rating where I can and hope for the best... _pale_

Serves me right for trying to ignore my problems in the past :eek:

I am 99% sure all lenders doing a credit check will ask what the purchase price and loan amount are (indirectly the amount of deposit has been answered).

Dont worry about your friend or anything else on the internet. There could be another reason why your friend never got to the purchase price/loan amount questions that he or she does not want to mention.

Pretty much everyone has a credit score of some description. Are you on the voters roll, do you have a bank account (even if no overdraft), mobile phone maybe, utility bills - all of these things will give you a score even if not real credit as such.

Alliecal

Yes we’re on the electoral roll, both have bank accounts with overdrafts and a credit card each ( mine only has a £200 limit, was mainly to help build some credit up) I’ve noticed that I have a defult too, daring back to 2012 which I hope knocks off before we apply, again with the 6 year thing :mad:
We’ve got in touch with a mortgage broker today to get a little more advice but can’t get in to see him till Monday. Feeling pretty nervous even after these comments... just one of those things

amnblog

I forbid our clients from worrying and tell them that is part of our job.

As Mortgage Broker only we are qualified to decide if there is anything worth worrying about.

In the case you outlined here I would not expect to be worrying.

Alliecal

You’ve really helped to settle my mind (and my stomach) thanks so much for your help. We pass our details to our mortgage broker tomorrow and he will start the ball rolling for us so fingers crossed everything works out ok :beer:

Marcus1991

Me and my partner have managed to get a mortgage offer last week and she has a 3 year old CCJ for £535 with a 10% deposit with Halifax if thats any reassurance for you.

Alliecal

Oh really? That’s good to know, thankyou. And congrats! :beer: