CCJ expire - Debt still show?

Jennifer34

So my husband has 3 CCJ's and they're all just about to drop off his credit file as of April when they will be 6 years old. 

We currently pay £1 towards each one every month and they're all handled by Mortimer Clarke. 
I know that the debt will still stand even after they drop off his file as we're technically making payments so they can't be statue barred.

My question is that we're saving for a mortgage and I don't know if they will know about these debts once they have dropped off when they credit search. Will they show up as a debt still? Are we doomed to have to pay them all (they're quite large amounts) in order to get a mortgage.

Thanks

Willing2Learn

Even though the CCJ drops of his credit files, if your husband does not stick to the terms of his CCJ instalment plan, then the creditor can still seek enforcement action. 

sourcrates

Once a debt, or a judgement has dropped off your file, it is gone forever, neither will show up in any credit search.
The debt will still be valid though, it just won`t show on your credit files.

Thrugelmir

You'll still need to declare these debts on your mortgage application. Treating the debt as an interest free loan is arguably a little short sighted. 

[Deleted User]

As above, they'll cause no end of problems in your mortgage application.

To be blunt - £1pm shows no willingness to repay your contractual payments, and it's that lack of willingness which will kill an application. Even if you couldn't afford to pay them, but were paying (say) £50pm, the lenders would give you credit for at least trying.

I've known people try to avoid declaring it, but that's borderline fraud (deliberately incorrect statement on expenditure and/or credit history).

I do see the value in an "interest free" loan, but getting full and final settlements at a reduced rate and getting rid of the things will be miles better for you. Unless you're scraping in at the minimum possible deposit, I'd use some money to pay them off.

Jennifer34

Somerset_La_La_La said:

As above, they'll cause no end of problems in your mortgage application.

To be blunt - £1pm shows no willingness to repay your contractual payments, and it's that lack of willingness which will kill an application. Even if you couldn't afford to pay them, but were paying (say) £50pm, the lenders would give you credit for at least trying.

I've known people try to avoid declaring it, but that's borderline fraud (deliberately incorrect statement on expenditure and/or credit history).

I do see the value in an "interest free" loan, but getting full and final settlements at a reduced rate and getting rid of the things will be miles better for you. Unless you're scraping in at the minimum possible deposit, I'd use some money to pay them off.

Thank you.
The debt is complicated and is basically in his name but his ex wife's debt - hence our reluctance to pay it which is why it's remained at £1 whilst we have tried to pursue her to pay it or seek legal advise about it.
We have had offers of reduced final payments to clear it and as much as it would pain me to pay it I would prefer to just have rid of it and not let it effect the possibility of a mortgage.

Do you know if you can counter offer theor offered final payment sums? 

[Deleted User]

I can understand that, the problem is we often get moral arguments (ex ran up bills / was at fault etc.) - but if policy at a lender says clients can't be behind on payments, whatever the moral circumstances, unfortunately that'll mean a decline when the lender becomes aware of it.

I'm sure some lenders would let you proceed for the mortgage with the £1pm payments, but if you want no hassle, then I'd personally go with settling it if you can afford to. I know it'll be a hard pill to swallow, but when you find the "perfect" home you won't want to be messing about answering lenders questions about a debt, you'll just want an offer ASAP!

I'm fairly sure you can negotiate on the reduced payments - if they've offered say 60%, phone up and offer 25%.

These companies buy debts for probably 10p per pound owed, so if they get 50p per pound owed that's a cracking return for them, I'm sure they'd settle for less - have a google around what people have managed to settle for. Don't mention the mortgage whatever you do or they'll know they've got you over a barrel - just say you want the debt gone but can't afford the £x in the letter, how about £y and I'll pay you right now.  It takes time and effort to collect £1pm, so you'd hope they'd be willing to negotiate and get the file closed down.

Good luck with the mortgage too!