Want to buy but have CCJ

B3x

So I’m in a bit of a pickle. I have a CCJ for 3 1/2 years ago whilst I was at college/uni. I am now a qualified nurse and wanting to potentially looking to try to own our own home. 

I have a student overdraft too.

I have a couple of questions as I don’t know the answers. 

1. Is it better to continue to pay the monthly amount to my CCJ or is it better to get a debt consolidation loan to pay this off so that it shows as satisfied? Scared of recent loan showing up on file when we go for a mortgage. 

Also 2. How is it best to go for a mortgage with a CCJ? We have been in touch with one mortgage advisor and he hasn’t even called us back. I’m assuming because he can’t make any money from us (!)

3. Wondering if it is even worth buying now with the current situation? 

We’ve been privately renting for 10 years now and paying £1000 a month in rent fees. Fed up of paying someone else’s bills now so any help would be most appreciated. 

Kind Regards

csgohan4

1: Having a satisfied CCJ is better than still paying for it, having a DMP or an active CCJ will affect your affordability and be a red flag to lenders due your history of managing money and not satisfying them sooner

2: Broker would be best who specialises in adverse to see your options

3: House prices are in a state of flux, likely to go down, how much and how long is anyones guess

No shame in Renting, it provided a roof over your head. I rented for just shy of 15 years before buying. 

a general principle is you can borrow x4.5 your combined gross income not including debt. You can look at the some of the lenders calculators to see how much you can borrow

good luck

steampowered

Is there an interest order on your CCJ? CCJs are usually subject to interest at 8%! If you can get a loan at a cheaper interest rate, it makes sense to take that and pay off the CCJ.

You will need to save a deposit to get a mortgage. The days of 100% mortgages are long gone. That could take a few years. If you set up a savings account and get into the habit of paying into that straight after payday you'll get there.

MovingForwards

There are lenders who lend to people with CCJs outstanding, being paid by instalments. Especially with it being 3 years old.

Taking a consolidation loan is rolling all debts into one, will impact affordability and probably add interest to something which doesn't have anymore interest building up.

Negative equity is only a concern when selling / remortgaging, not fixing with the lender you already have a mortgage with or you are only looking to live in it for a few years. Buying a home is like buying shares, or having a stocks and shares ISA, not good for short-term, more for long-term 5+ years, ideally 10+ years as you can ride the waves.

Some members will say no, dont buy, there's a huge crash coming. Others say buy. We can't make the decision for you, it's up to you to make an informed decision, weigh everything up, same as any time you are buying.

I have credit history blips, spoke with a broker to get a feel for what my options were, made be feel like carp due to how judgemental she was for having a CCJ being paid by instalments; adverse broker allegedly.

Knocked my confidence, joined here, liked how one of the brokers spoke / posted, made contact, knew what I had to work towards after discussion / fact find, dropped messages every quarter to say where I was at / touch base with him and I had cleared the CCJ. One day all the boxes were ticked, I had a DIP / AIP, viewed a property, offered etc, virus hit, mortgage offer got extended, conveyancing done, I picked my keys up 16 days ago and live in my own home.

I had to put in 15% deposit for my mortgage, but had no concerns about finishing my purchase.

I had no interest in a new build or the H2B equity loan, only an older property. I've got one over 100 years old and it isn't a listed property.

As part of my background research, prior to viewing, I looked to see what the property sale prices were for where I've purchased and the area during each crash and due to my deposit and small overpayments for this year, have no concerns about the value compared to the outstanding mortgage.