Mortgage with 2 x CCJ/Poor credit

cjp2308

Hi,
I appreciate there are multiple threads in the subject but was hoping to get some advice on  my individual circumstances.
My partner and I are looking at buying our first property together, the 10% deposit isn't an issue but I'm worried poor decisions a few years back may cause us problems.
Having checked my credit report 2 things jump out at me which I feel may put the brakes on any chance of a mortgage, a satisfied CCJ (£1100) from 2016 and an unsatisfied CCJ (£3000 but £1500 outstanding) which I am making payments monthly as agreed, from 2017, other than these I don't have any missed utility payments and 0 balance on credit cards as I paid these off as a priority prior to saving for the deposit.

Can anyone advise if it would still be worth exploring the possibility of a mortgage or will I have to wait until the CCJs are removed from my credit file (2023) if it helps my partner has a good credit score with no missed payments, defaults CCJ etc.
Thanks in advance.
Chris

Thrugelmir

If you've money saved for the deposit why haven't you settled the CCJ?  Repairing your credit file should be the top priority. 

cjp2308

Thrugelmir said:

If you've money saved for the deposit why haven't you settled the CCJ?  Repairing your credit file should be the top priority. 

The creditor is just taking a monthIy payment via direct debit, but  i agree that  should be the next step, CCJ will still be on my credit report until 2023 though which is still a problem

TWIGLET1234

Thrugelmir said:

If you've money saved for the deposit why haven't you settled the CCJ?  Repairing your credit file should be the top priority. 

Why are some people so condescending? 
I would imagine you might be in with a shot with a lender like Precise but would need a higher deposit than 10%. Try a broker

RelievedSheff

We got a mortgage with a 10% deposit last year and I had at the time 2 CCJ's on my file, 1 satisfied for £280 and 1 unsatisfied for £500. The unsatisfied one has since dropped off my file leaving just the satisfied one from 2015. We did not get a great rate due to my adverse credit but we did secure the house that we wanted and the fixed rate was only for two years, one of which has already flown by.

It is worth noting though that the mortgage market has changed significantly since then due to Covid 19 and the adverse lenders were the first to pull back their mortgage products so your 10% deposit may not now be enough. 

Find a mortgage broker who has experience with adverse credit and they will be able to advise further about the current situation.

cjp2308

Thanks Both, I think my decision to put money into savings rather than pay in back to the creditor in larger instalments was based on me getting interest on the savings, I hope that makes sense anyway.

I'm not in a  rush and could possibly delay a year until things hopefully improve, in the meantime I could push to a 15% deposit, would this improve our chances massively? 

[Deleted User]

90% is higher risk than 85%, so if you can get to 85% I'd do it. A 85% product will be cheaper than a 90% product - if you're at the higher risk lenders, significantly cheaper. Some of the higher risk lenders wouldn't even lend at 90% - so I think 85% would certainly open options, if you can get there.

I think the problem you'll have with the CCJ is that lenders will see it's either satisfied, or it's not. Even if you only have £1 left to pay (which the lender wouldn't know), until it says satisfied on your credit file, they'll treat it as if it isn't.

If it's not settled, that'll go against you. So it might be worth taking the hit and satisfying it now - then putting the monthly payments you're currently making to it into your savings, as you won't have to make them anymore.

That large CCJ will need to be 3 years old to stop you being classed as credit impaired. Sounds like you're nearly there if it was registered in 2017 - but if not quite at the 3 year mark it's worth bearing in mind. Credit impaired is another spanner in the works you'd rather not have!

Thrugelmir

TWIGLET1234 said:

Thrugelmir said:

If you've money saved for the deposit why haven't you settled the CCJ?  Repairing your credit file should be the top priority. 

Why are some people so condescending? 
I would imagine you might be in with a shot with a lender like Precise but would need a higher deposit than 10%. Try a broker

Perhaps some of us actually know what we are talking about. 

Thrugelmir

cjp2308 said:

Thanks Both, I think my decision to put money into savings rather than pay in back to the creditor in larger instalments was based on me getting interest on the savings, I hope that makes sense anyway.

Thought that would be your answer. From any lenders point of view. Does you no favours.  As reflects an underlying attitude towards the management of personal finance. If I borrowed £50 from you , repaid £25.  Then took several years to clear the balance. How would you feel if I then said lend me a £1,000.  Gut instinct would be not to trust me in case issues with repayment were encountered down the line. Lenders can pick and choose their customers. That's a fact of life. 
With a better credit file. You could obtain a better rate of interest sooner. Which will outweigh the interest made on deferring payment of the debt. 

skinnish

If you intend on paying back the outstanding amount then getting a mortgage or better rate on that mortgage far outweighs the few quid interest a month as @Thrugelmir said above 

csgohan4

TWIGLET1234 said:

Thrugelmir said:

If you've money saved for the deposit why haven't you settled the CCJ?  Repairing your credit file should be the top priority. 

Why are some people so condescending? 
I would imagine you might be in with a shot with a lender like Precise but would need a higher deposit than 10%. Try a broker

one lender may not be suitable for another person and nothing wrong with stating reality, what part of their post was incorrect?

I am sure you aware that lenders have now tightened their criteria and adverse lenders are now asking for more in deposit

 A broker would be useful, but if the CCJ is still active and OP is unwilling to clear this, this shows their attitude to money and conversely the lenders will also reciprocate accordingly.