Mortgage with 2 x CCJ/Poor credit

cjp2308

Thanks again all,

I agree, having read up on all points, I am currently paying £100 a month directly to the creditor to clear the outstanding CCJ I will increase this as a priority to ensure it is satisfied in the coming months prior to putting anything else into savings for now.

Date of CCJs the unsatisfied one is March 2017 and the satisfied one November 2016 so best part of 3 years to wait to get these off my file. 

Am I better off waiting another 3 years until the CCJ’s are cleared off my file? I think ideally that is probably best but in reality I think my partner will want to stop renting and look to purchase shortly - max 12 months.

[Deleted User]

Waiting will give you the best chance, as you'll have nothing on your file. So you'd just be like any other customer.

When both CCJs are settled, I'd like to think you'd be able to purchase prior to them coming off your file though - especially if your partner is strong. Obviously coronavirus has shaken the market up a bit!

You might have to explain the reasons behind the CCJs, especially the big one.

How long ago you settled the CCJs may have a bearing at some lenders - so I'd personally be looking to satisfy it pronto. If you buy in 12 months time but CCJ was settled 2 months prior to application it won't look as good as if it was satisfied a year before application.

cjp2308

Thanks, I’ll get it settled over the coming months and then see how things look, both in terms of the market and savings. I suppose worst case, if I wait it out, I will have more time to build up a bigger deposit. 

Just need to decide if it’s worth waiting another 3 years for them to come off my credit file or take the hit and pay higher interest I guess.

[Deleted User]

cjp2308 said:

Thanks, I’ll get it settled over the coming months and then see how things look, both in terms of the market and savings. I suppose worst case, if I wait it out, I will have more time to build up a bigger deposit. 

Just need to decide if it’s worth waiting another 3 years for them to come off my credit file or take the hit and pay higher interest I guess.

Hi @cjp2308 - sorry I missed your reply. Just to clarify, it won't necessarily mean that you have to "take the hit" / pay higher interest rate if you don't wait the 3 years - it's not an "all or nothing" scenario.

Of course if you end up with an "adverse" / specialist lender, then it'll cost more. But potentially it would get through at a 'normal' lender that doesn't charge high rates

The £3k from 2017 is obviously going to be an issue, but that's not to say that it's impossible to get a normal rate before it drops - especially if it's settled and there's a strong second applicant. A lot will of course depend on the market and the general risk appetite, as you say.

I'd speak to a broker when you're ready, but in theory it is possible to get a 'normal' rate before the 6 years are up, so I wouldn't resign yourself to either paying a higher rate or waiting - you may surprise yourself and be able to get a normal rate now, it'll just be harder work than if the CCJs 'didn't exist' (e.g. had dropped off your file) - subject to credit scoring and a full case assessment, which may well involve questions from Underwriters

cjp2308

Thanks for the detailed reply, I assumed due to the blemishes I'd automatically be forced to avoid the typical lenders/have to pay a higher interest rate

 I spoke with the company they offered £1200 for settlement in full and for my CCJ to be satisfied, so that's all settled now.