Halifax & CCJ

jamwasp

Hi

My current mortgage is with Halifax, held jointly with my husband since November 2017. We applied for an agreement in principle, again with Halifax, in July 2020, which was approved but we ultimately didn’t proceed. 

Last month we found a house we loved and planned to make an offer but were rejected for an AIP because of a CCJ on my file, from May 2017. It’s for £850, from a property factor, and I truly had no idea as the details were sent to an old address. Both our files are otherwise clear. As this was added to my file in May 2017, it would have been there when we got our existing mortgage and when we got the AIP last summer. 

I know that lenders are tightening their lending criteria, but is there any point in going to a broker who I assume is able to actually speak with the bank and explain the situation? My husband is the higher earner, and pays for the mortgage from his account (I cover other bills of course!). The additional lending would add around £200 to our monthly payments, which is what we add to our savings currently. 

Just wondering if there is any hope for us? I know sub-prime lenders exist, but would prefer to remain with Halifax because we like them, and there’s an early repayment charge (not a deal breaker though).

K_S

@jamwasp If you're saying that an accurately keyed in Halifax AIP was declined last month, a broker is unlikely to be able to get you to an accept. Though there are a few tricks (nothing fancy, just things like switching the applicants around, etc) to try for a different outcome and potentially the CCJ going over the 4 year mark may also make a difference on the "credit-scoring" that Halifax does.

If that is the only blemish on your credit reports, there is no need to go sub-prime that I can see. There are a couple of other lenders (including smaller building socities that don't credit-score) who may consider and offer mainstream rates. I would recommend getting in touch with a broker.

RelievedSheff

Have you satisfied the CCJ? That will make a difference to how lenders view the debt.

We did recently manage to remortgage to the Halifax from an adverse lender (Kensington) with 1 satisfied CCJ on my credit file but that was for a small amount, £279, and is due to drop off my credit file next month.

[Deleted User]

Lenders have tightened up criteria but Halifax in particular have really really turned the screw on any adverse recently.  They used to be a lender where you might as well try an adverse case as they went through so often but now they reject perfectly good vanilla cases for no real reason.   I prefer lenders where you know whats going through and what isnt, Halifax recently is basically guesswork on their credit scoring (in my opinion anyway). 

jamwasp

Thank you everyone.

I haven’t satisfied the payment yet, largely because I’ve only known about it a few weeks. But also because if it will scupper my chances of moving mortgage entirely, then I’m reluctant to pay it (since the damage is already done). I’d be happy to pay it right now if I knew that it would make a difference!

I’ve an appointment with a broker tomorrow, so hopefully we’ll have some options after that. Otherwise I guess we’ll be stay put for the next two years 🙄