CCJ and first time buyer

Knowledge_Seeking

Hi all,

I'm looking to buy a house next year, I'm 25 and my partner is 35. He's never owned a house and unfortunately has two CCJs that he repays monthly (originally I think they were both over £1000 if this affects the advice sought) but currently one sits at £912 and the other at £836. He currently only pays a very small amount off per month due to low income and many bills including child maintenance. However, his credit report still states "good"? Possibly in part due to having only one very basic debit card since these debts in 2015?

I think what is most frustrating is that renting is more expensive than I can work out mortgage repayments to be (if I'm right in thinking a mortgage on a house up to £150,000 would be approx £450-500, with our rent being £625 per month bills excluded).

I have a decent deposit saved and a help to buy ISA ongoing at max payment. From these I believe I can put a 10% deposit down on a house up to £150k, and cover the many other buying costs, around this time next year. However, will the ccj's my partner has greatly affect this? Without a joint application as far as I can tell I would not be approved for £150k despite the savings? (I earn under £20k per year)

How is it that he has a 'good' credit rating (Experian) with these? Does that count for anything to offset the ccjs? Will we be refused by all high street lenders and pay more interest? Would that make it worth renting until the ccjs are off record, despite feeling like we are throwing money away instead of investing in our future?

Any advice to stop the confusion welcome, it doesn't seem to help a great deal 'researching' when all situations are different! :eek:

Many thanks,
KS

ACG

This is why we say - ignore your "credit score". They are absolutely pointless. I am assuming the CCJs are quite historic? That is probably what is helping his credit file look better than it really is.

You say he has bills and a low income and child maintenance, I would be surprised if he can add much to your borrowing capacity if he is struggling to pay off the 2 CCJs. Mortgage lenders will be assessing your Mortgage payments based on a rate higher than you are actually paying in order to protect against the inevitable rate rises.

There is not really enough relevant information to determine if a Mortgage is possible or not or even what the rates are likely to be. But I think you need to get your credit reports in front of a broker, as the CCJs may mean you have to look at a specialist/sub-prime/adverse lender.

kingstreet

Lenders are interested in the EXACT registration dates of the CCJs and the amounts involved. Whether they are three years old or four years old at the time may add lenders to your potential pool.

Your loan to value determines the risk. No-one is interest in Equifax/Experian (or anyone else's opinions of your credit score) so put all three versions of your statutory credit files in the hands of a good recommended independent broker.

Please, please, please ensure everything is paid on time for the next six months and you don't apply for any new credit causing hard searches which aren't necessary.

rachael88

I've been looking into bad credit mortgage companies as my husband has a CCJ and the interest rates for having a 10% deposit are ridiculously high! I'm looking at getting a 160k mortgage and with a high street lender on a 2/3 year fixed interest rate it's around £650 a month but with a bad mortgage company it's around £900.
We have been separated for 2 and a half years so I've applied for him to be taken off my financial associates on the main credit references so hoping I can get a high street lender to approve me.
Have you considered shared equity properties? I am just about to sell mine to get a bigger house, I'm using the equity from the sale to fund my deposit.