Nationwide 90% Mortgage with 5-year-old CCJ

FirstTimeBuyer28

Hello

My partner and I are looking to buy our first home and we checked our credit scores on equifax. Both came out as excellent, however my 'score' was significantly lower than my partner's. On exploration, it said that I had a CCJ of £448 from 5.4 years ago that I had no knowledge of. I rang the county court and they informed me that this was due to being overpaid from a job I held during my second year of university and the address they had for me was my second year accommodation (one i moved out of when I quit the job). I contacted the soliciters who now own the debt and paid it in full today (still pending).

My question is, with everything else on my credit score being excellent, full-time employment for 3 years how likely am I to be accepted for this mortgage (90% mortage with 5 year fixed term)? I appreicate that you may not know the definite answer but I am worried and would like some guidance on the likelihood.

Many thanks in advance

[Deleted User]

honestly I cant see Nationwide doing this.  Maybe in normal times it may have got through but at the moment they are very much cherry picking the safest cases.    Maybe youve got enough good marks to counter the bad one but there is really no way of knowing until it goes through their system. 

They so soft searches on AIP so nothing to lose by trying i guess

FirstTimeBuyer28

Deleted_User said:

honestly I cant see Nationwide doing this.  Maybe in normal times it may have got through but at the moment they are very much cherry picking the safest cases.    Maybe youve got enough good marks to counter the bad one but there is really no way of knowing until it goes through their system. 

They so soft searches on AIP so nothing to lose by trying i guess

Hi,

Thank you so much for reading my thread and replying. My gut instinct is the same and I am completely gutted. As a 19 year old at uni, you don't think to tell your ex-employer the address of your third-year accommodation in case they have overpaid you! If i had any idea I had been overpaid i would have given it back immediately. Both my partner and I are teachers and have no other credit issues so praying that might be taken into consideration, but want to be prepared if it is rejected.

Thanks again and have a lovely evening

520d2012

Hi - I understand that 1 CCJ up to £250 should be ok, but anything above that is referred to lender and not automatically declined.They do however say that each case is managed individually and all details taken in to account.
I would recommend taking the advice of some broker as there are many lenders out there who ignore CCJ’s over 3 years, but in current climate getting a 90% LTV can be difficult
Good luck - hope it goes well for you 

FirstTimeBuyer28

520d2012 said:

Hi - I understand that 1 CCJ up to £250 should be ok, but anything above that is referred to lender and not automatically declined.They do however say that each case is managed individually and all details taken in to account.
I would recommend taking the advice of some broker as there are many lenders out there who ignore CCJ’s over 3 years, but in current climate getting a 90% LTV can be difficult
Good luck - hope it goes well for you 

Good evening,

Thank you so much for the reply and amazing advice. As a new time buyer I have no idea how these things work so thank you for helping. We will contact a broker to advise and see what can be done. Worst case scenario is that we wait until Feb when it is 6 years later and hopefully the CCJ should not appear (?). Appreicate we are in a better position than some realising this so close to the 6 years mark!

Thank you again for your comment and have a lovely evening

520d2012

No worries - from personal experience use a human broker not an online one. I used an online one previously and they were good but so much delay sending and waiting for documents it just adds to the stress - only because sometimes there’s a need for original certified documents. That was the case in 2018.
With your case it will be about previous adverse credit - some lenders ask about any previous issues, some about last 6 years and some just wait for the credit check.
A broker will package the application well, and don’t be put off by a broker thinking another cost. Most wont charge anything as they get commission for a successful application, some charge only when the mortgage is offered

robynjur1108

Have you tried getting a mortgage in principle?

Me and my partner could not get an agreement in principle with them due to our credit score. We have excellent credit history's and no negative points on our files and according to Experian credit scores of 900+. We have an income of 60,000 a year and the mortgage was for 90,000.
My mortgage advisor will not be putting any more applications through nationwide, as she believes if mine can't be approved no ones will. 

FirstTimeBuyer28

robynjur1108 said:

Have you tried getting a mortgage in principle?

Me and my partner could not get an agreement in principle with them due to our credit score. We have excellent credit history's and no negative points on our files and according to Experian credit scores of 900+. We have an income of 60,000 a year and the mortgage was for 90,000.
My mortgage advisor will not be putting any more applications through nationwide, as she believes if mine can't be approved no ones will. 

Hi

We applied on Friday 24th July for a mortgage in principle. Had a text saying it have been approved and to continue our application by uploading documentation (payslips and bank statements from past 3 months). We were told that our application was now with the underwriter and will take a further 3-4 working days to come back. Fast forward to this morning and I check my equifax for the first time and I see the unpaid CCJ. Our equifax accounts havent been 'checked' yet (no evidence of hard search) so I am anxious that when they see the CCJ they will decline- especially if you are being declined with no CCJ and a much better credit score than me! Partner and I are in similar position regarding joint income.

Thank you for letting me know about your experience with Nationwide. Although I know I should just wait for them to get back to us, I feel better preparing for a rejection and planning what to do from there on.

Thanks for replying and have a lovely evening

MovingForwards

Ignore the credit score / rating as it's not seen or used by any financial institution in the UK, it's the credit history they see / use for assessing applications eg payments made on time / late / missed, defaults, CCJs, IVAs, bankruptcy. 
The lenders have their own internal algorithm methods for scoring applications.

As you have a blip on your credit history, go through a broker if this application does not work out.

FirstTimeBuyer28

MovingForwards said:

Ignore the credit score / rating as it's not seen or used by any financial institution in the UK, it's the credit history they see / use for assessing applications eg payments made on time / late / missed, defaults, CCJs, IVAs, bankruptcy. 
The lenders have their own internal algorithm methods for scoring applications.

As you have a blip on your credit history, go through a broker if this application does not work out.

Thank you! As you can tell by my mulitple postings I am really worried/anxious about this. Thanks for everyone's excellent advice (especially yours!) I know that we need professional help! Doubting this application will go through so will be contacting broker in the morning.

Again, thank you

RelievedSheff

FirstTimeBuyer28 said:

robynjur1108 said:

Have you tried getting a mortgage in principle?

Me and my partner could not get an agreement in principle with them due to our credit score. We have excellent credit history's and no negative points on our files and according to Experian credit scores of 900+. We have an income of 60,000 a year and the mortgage was for 90,000.
My mortgage advisor will not be putting any more applications through nationwide, as she believes if mine can't be approved no ones will. 

Hi

We applied on Friday 24th July for a mortgage in principle. Had a text saying it have been approved and to continue our application by uploading documentation (payslips and bank statements from past 3 months). We were told that our application was now with the underwriter and will take a further 3-4 working days to come back. Fast forward to this morning and I check my equifax for the first time and I see the unpaid CCJ. Our equifax accounts havent been 'checked' yet (no evidence of hard search) so I am anxious that when they see the CCJ they will decline- especially if you are being declined with no CCJ and a much better credit score than me! Partner and I are in similar position regarding joint income.

Thank you for letting me know about your experience with Nationwide. Although I know I should just wait for them to get back to us, I feel better preparing for a rejection and planning what to do from there on.

Thanks for replying and have a lovely evening

That is good to hear that you passed the DIP stage. They do a soft search at that stage I believe so will have seen the CCJ on there.

We will be in a similar situation at the beginning of next year when we remortgage in April. I will have a satisfied CCJ for £279 that will fall off my credit file in July 2021. Other than that there will (all being well between now and then) be no other adverse credit on either of our credit files. So we are hoping that a mainstream lender like Nationwide might take on our case and get us away from the eye watering rate we are on with Kensington at the moment.