First Time Buyers With CCJs

DM1234

Hi,

First time User to this site....

Me and my partner are looking at securing a mortgage however due to past financial difficulty i have 5 CCJs (all satisfied) highest been 400 pound. They are all over 12 months old and all where paid in January of this year.

We are looking to use the help to buy scheme.
Our joint income is around 65-70k per year with the 1 dependant.

We have no defaults or anything other than the CCJs of mine on our credit files.
We have high affordability also.

We have a 20k deposit, and looking for 60k help to buy to secure a 320k new build home. I have been advised that a broker should be able to find a mortgage at around 5% which we don't mind paying the extra percentage until the renewal.

So all in all with the help to buy it looks like a 25% Deposit with 75% mortgage needed.

What are the chances we will get accepted for this?

amnblog

5 CCJ's?

You say they are all over 12 months old.

If most are over 24 months old you have a decent chance of getting lending with the correct advice from a suitably experienced mortgage broker.

No chance without that advice.

DM1234

yes 5 CCJS. Young and stupid I know.

All over 12 months old and satisfied. 3 within 24 months ( 1 a few months from 2 year old) the other 2 almost 4 years old.

No other defaults or anything on credit file.

Thrugelmir

DM1234 wrote: »

They are all over 12 months old and all where paid in January of this year.

Doesn't look good. Until you wanted a mortgage that they remained unpaid. Your profile matters to a lender.

minimike2

Where has your deposit come from?

I would be asking, how do you have such a sum of money all of a sudden, with a number of small outstanding defaults from not long ago.

Either you chose not to pay them, in which case you don't represent a very good risk with your attitude to debt, or you have been gifted / inherited this money, which raises other questions in relation to financial conduct before this money was available.

DM1234

Paid once I had the funds to pay them.

I don't havr any default on my file, and I have numeral credit accounts which are all well within balance and regularly paid.

As for the deposit, new job which is a lot better paid which has allowed me to clear all my adverse credit. 1 of the CCJs was from a wage dispute but didn't go in my way.

The rest all equate to less than 1000.

They are all older than 12 months. And in around 9 months they will be all older than 2 years.

I was only asking for advice on the forum.

minimike2

This is the sort of questions an underwriter will ask themselves, which is why it is pertinent to your question.

Something still doesn't quite equate for me with the numbers and the scenario but that's for any potential lender to look at. I don't understand how you have saved £20k from your salary (so assuming this must have been over a period of time) and yet have less than £1k off CCJs which only finished getting paid in January.

It's not an interrogation - You've asked for help but without the full facts no one can do that.

Whatever the upshot of the above, you need a broker experienced in adverse credit cases, but on the face of it things are not looking great. Not saying it won't be possible, but be prepared to be picked apart by any lender.

DM1234

My apologies, We will have around £20k deposit come time of application ( been 6-7 months away)

Sorry for the confusion, i should of read it back!

Just wanting some adivce off poeple around the forum before we start placing all eggs into one basket.

Again another mistake on my behalf, was meant to say 4000 was for the wage dispute. Which was paid over 3 years ago.

Apologies again.

So just to correct this, 5 CCJs - 4 = Less than 1000.
1 was for 4k (over 3 years ago)

All satisfied

Will have around 20k saved arund autumn of this year when we are looking to buy. me or my partner will not have any defautls and have low balances on credit cards at this point also.

Sorry once again

Thanks

bamgbost

Any Joys r advice??
I am in a similar situation.
Except not defaults or ccjs. But arrears for approx. 6 months, from over 12 months ago. Want to know what options if any I have......

sandyk01

Hi, when we went for our first mortgage we applied with Virgin which all looked good until checks were done and we found out my husband had an unsettled CCJ on his file.... It was in fact a £20 phone bill which he cancelled the contract and moved so never got the letters. When they eventually caught up with him he paid it immediately but the creditors never updated the system so it was showing as unpaid for years even though he paid it! Had to run around but Virgin wouldnt lend us the money and we ended up going with a different mortgage company (Precise) at a higher rate.

My cousin had 3 CCJs all recent but settled and no high street bank would touch him- he also got a mortgage through Precise albeit the rate was really high.

I think your chances with a high street lender like Nationwide/Halifax etc are very slim. However try other private lenders- rates a high but you might have a chance with them. My husband works at a local mortgage broker so it was all done through them. I'd reccomend a broker as they have access to other lenders which you may never heard of but can only access via an intermediary.

Good Luck.