Is it possible to get a small mortgage with a paid off CCJ

[Deleted User]

Is it possible to get a small mortgage say £45,000 with a 10% (£5,000) deposit even though I have a paid off (discharged) CCJ on my credit file?

I could probably raise the deposit to £7-8,000 if it would give a better chance.

MovingForwards

How much was the CCJ for, when was it entered and paid off?

[Deleted User]

The CCJ was for £1,800 it was entered Oct 2018 and paid off and marked as such Nov 2020.

K_S

Deleted_User said:

Is it possible to get a small mortgage say £45,000 with a 10% (£5,000) deposit even though I have a paid off (discharged) CCJ on my credit file?

I could probably raise the deposit to £7-8,000 if it would give a better chance.

@leeuk A £50k property? Anything unusual about it?

That aside, a 90% LTV mortgage with a less than 3 year old CCJ is unlikely. The low property price will also rule out quite a few lenders. 

[Deleted User]

Nothing wrong with property as such, it's a leasehold ex-local authority flat (upstairs flat with one below) in the North East where property prices are low to start with.

K_S

Deleted_User said:

Nothing wrong with property as such, it's a leasehold ex-local authority flat (upstairs flat with one below) in the North East where property prices are low to start with.

@leeuk Ex-LA flat, £50k value, CCJ less than 3 years is likely to be an almighty lift at 85% LTV, let alone 90%. Lenders often have higher minimum values for ex-LA flats and LTV ceilings in the region of 75%.

Out of professional interest, if you do manage to get a mortgage on it, kindly do update the thread.

[Deleted User]

I wouldn't be buying from the local authority, it's already been in private ownership for a number of years. 

K_S

Deleted_User said:

I wouldn't be buying from the local authority, it's already been in private ownership for a number of years. 

@leeuk Understood. For the purpose of most lenders' criteria, it'll still count as ex-LA. I'm assuming the freeholder is still the council?

MovingForwards

Not only is there higher deposits with ex-authority properties, there's also minimum loan amounts and minimum property value amounts.

My lender had £75k as min value and 20% deposit, pre-covid, which is why I ruled out all ex-authority properties to make it less stressful and easier as that extra 5% on top of their normal deposit would have taken a while to get together.

[Deleted User]

The freeholder is a HA that took over the running of the local council housing some years ago.

Might just have to wait until this CCJ has dropped off until I can get a mortgage then.