Securing a mortgage with a CCJ

dyrm95

Hi all,
I hope everyone is doing well. I was just looking for some advice regarding my current situation. 
When I was a student at university I got into some financial difficulty and took out several payday loans. These were not all in one go, but I fell into a vicious circle of taking out another to pay off the prior. Eventually, I graduated and secured my job within the NHS. At this point, I took out a larger loan with Amigo to consolidate all the smaller payday loans. I continued to pay off this amigo loan without missing a payment for about 2 years, the interest rate was incredibly high and meant that on a £4,000 loan I was repaying around £7,000. When my salary was increasing and my financial situation began to improve I decided to get rid of the loan and paid the final £4,000 off in a lump sum (great feeling).

Unfortunately, there was one loan that slipped past me when I paid everything back (or thought I did) and this was a MoneyBoat.co.uk loan. I was not aware of it until I noticed a CCJ appear on my credit file. I was devastated but it was already past the 30 day period in which I could respond. I called MoneyBoat and tried to negotiate and I told them I would pay the balance immediately If they could supply me with supporting documentation to use within my application to get the CCJ set aside. They have not complied with this as of yet.

Now, I'm 25 and worried sick about not being able to secure a mortgage. I and my partner both have good, stable jobs with a decent income. Before out enhancements and bonuses, we earn around £75,000 a year. My partner has a spotless credit history with no adverse credit, but I have a default and CCJ from that company. I was gutted, I worked so hard to pay off all the debtors without missing payments etc, but one slipped past.

I have approached the company again to ask them if they would reconsider supplying me with a supporting statement that I was not aware of the CCJ being filed so I did not have the opportunity to respond. If they do not comply and I am stuck with a CCJ, what are my chances of securing a high street bank mortgage? Our budget is £350,000 and we currently have a 10% deposit.
Any help would be appreciated and I would be happy for any advisors to approach me or indicate to me to approach them.
Thanks

Mishelski

How old is the CCJ? And how long ago did you settle it? 

There's plenty of high Street lenders who are willing to lend to those with CCJs though the age, amount and status of the ccj will determine if they accept you ot not. 

If your CCJs is over 3 years old and settled, most lenders will accept you. If you have a particular lender in mind you can generally find their lending criteria if you Google it.

dyrm95

Hi
The CCJ was only registered against me in April 2019 so I suppose by the time we hope to purchase our property it would be two years old.
Thanks for your reposne

MovingForwards

@ACG is a specialist adverse broker, he places people with high street lenders where possible. (He is the broker I used)

@haras_n0sirrah also deals with adverse.

Hopefully one of them will comment and say what may be possible.

haras_n0sirrah

Once the ccj is two years old there will be more options available. You will though need a minimum of a 15% deposit I am afraid

dyrm95

Thank you @haras_nosirrah. I think a 15% deposit is achievable for us.

ACG

I can only echo haras.
It can be done now, but I think you need a 25% deposit. Otherwise it will be 2 years and then a 15% deposit (depending on how everything goes over the next 6 months) but in either of those cases, I am not sure you will be looking at high street lenders/rates. I think for that to happen, you are looking at 3 years clear in the current climate. But if this vaccine works and the world goes back to normal, you could be looking at normal rates with a 15% deposit come April. 

kingstreet

If you were unaware of the court case, you can have the judgment set aside by completing an N244. It is then upto the creditor to decide to re-file (or not) giving you the opportunity to settle with them. The 30 days you mentioned only applies to settling the judgment before it is added to the Registry.

ACG

kingstreet said:

If you were unaware of the court case, you can have the judgment set aside by completing an N244. It is then upto the creditor to decide to re-file (or not) giving you the opportunity to settle with them. The 30 days you mentioned only applies to settling the judgment before it is added to the Registry.

I love it when you pop up with a really good answer. You are like a human wikipedia. 

dyrm95

kingstreet said:

If you were unaware of the court case, you can have the judgment set aside by completing an N244. It is then upto the creditor to decide to re-file (or not) giving you the opportunity to settle with them. The 30 days you mentioned only applies to settling the judgment before it is added to the Registry.

Thank you, I appreciate the advice. I have been looking into this, I'm going to go ahead and make the application anyway, I just want to get it right. I have asked the creditor if they would supply a supporting statement to collaborate my version of events because I was truly unaware of the judgement. I guess I'm just worried that the application would get thrown out.

MovingForwards

dyrm95 said:

kingstreet said:

If you were unaware of the court case, you can have the judgment set aside by completing an N244. It is then upto the creditor to decide to re-file (or not) giving you the opportunity to settle with them. The 30 days you mentioned only applies to settling the judgment before it is added to the Registry.

Thank you, I appreciate the advice. I have been looking into this, I'm going to go ahead and make the application anyway, I just want to get it right. I have asked the creditor if they would supply a supporting statement to collaborate my version of events because I was truly unaware of the judgement. I guess I'm just worried that the application would get thrown out.

They won't give you that supporting statement, how can they confirm you didn't receive it? As far as the courts are concerned if something is posted, it's deemed to be received 2 working days later.

You need to prepare a consent order for them to sign, agreeing to the judgement being set aside. Keep a copy of the letter, CO and obtain proof of posting from the post office when you send it off.

If they don't agree, that all goes in to your application to set it aside without consent.