Help - First Time Mortgage With a CCJ

jbro159753

Hi All,

Me and my partner are currently looking to purchase our first home. I am 25 and she is 24. In the eyes of lenders, she would be classed as perfect, no debt and no bad credit. Her credit score is the highest it could be on Experian. However, it's a slightly different case for me. Like her, i have never been in any debt or had any late payments, even my credit card is a charge card which i pay back every month without fail. However, I do have a CCJ to my name. The CCJ is for £140, a year old and was classed as satisfied the second i found out about it. It was for a parking ticket, I unfortunately knew nothing about it, by the time i did, it was too late.

My salary is just over £50,000 a year and her's is £35,000 a year. As we don't have any outstanding loads or credits, our monthly outgoings are minimal (mainly just travel for work). We are looking to purchase a home for around £300,000 with a 10% deposit. Therefore we need a mortgage of £270,000. Looking to get it over 30 years.

We met with my bank, and they were happy to lend us the £270,000 needed however as it was only a 'soft search' they couldn't give me a definite answer in regards to the CCJ. They said they would have to refer it to their underwriters however this would be at point of us going through the application and we're not ready yet as we haven't found a house. I'm worried to do this because if they reject it, my credit rating would take a hit and i'm sure it would affect another mortgage application.

My Question:
Does anybody know, based on the information above, what our chances are of the underwriters accepting the mortgage application?

Or if they are likely to reject it, what would be our best options?

Thanks for any replied in advance.

Tomg84

I'm absolutely sure there are lenders out there but I'm no mortgage broker. I would speak to one so you can get the best deal for your circumstances.

Me and my wife didn't have perfect credit history when we applied but got a normal rate mortgage.

foxy-stoat

jbro159753 wrote: »

My Question:
Does anybody know, based on the information above, what our chances are of the underwriters accepting the mortgage application?

Or if they are likely to reject it, what would be our best options?

The only person/people who will know if 1 CCJ will effect the underwriters decision would be the underwriters.

I would be engaging a broker with your information, they will know the right lender to go to with 1 CCJ, your bank may be ok with 1 CCJ but a broker will know who not to go to.

Unfortunately your partner is not the perfect applicant in the eyes of the lender - as she has had no credit then she will have very little credit history.

If you are 6 months or more away from finding a house it may be an idea to get a credit card each, buy a tank of fuel and settle it when the statement comes in. That will give you some credit history.

Oh and you dont have a credit score that the lenders can see.

kingstreet

jbro159753 wrote: »

The CCJ is for £140, a year old and was classed as satisfied the second i found out about it. It was for a parking ticket, I unfortunately knew nothing about it, by the time i did, it was too late.

In which case, you should have sought advice on the motoring forum here or on PepiPoo which would have told you to apply to have it set aside, waited to see if it was re-listed then contested it.

Worse case scenario, it would have been awarded again and you could have paid it within thirty days and it would then never be visible on the register.