Urgent mortgage with CCJ advice needed

Thrugelmir

Jenni_D said:

Thrugelmir said:

Why not make a serious attempt to repay the CCJ?  Would improve your credit file immensely. Treating it as an interest free loan does you no favours. 

Would it? Would a prospective credit provider really treat a Satisfied CCJ any better than one that is still open? (Maybe some will, but I don't think it is as clear cut as you're espousing).

Paints a picture of the potential borrower and their attitude towards personal money management. If it didn't matter. Then everyone might as well default and take as long as they like to repay the debt owed. Profiling new potential customers in involves many facets. People are more predictable than is generally assumed.

Of course they'll be a speclialist lender who will underwrite the risk. Though will come at a cost in the form of the interest rate offered. 

Jenni_D

I wasn't comparing paying off a court judgment to avoid a CCJ being registered - of course that's what anyone should do. (Or avoid getting in that position in the first place, if it is within their power). I was comparing (per your own comment) the relative value of paying off or not a registered CCJ. I don't believe it will make that much difference as the CCJ will still remain on the credit file; it will merely become marked as Satisfied.

Thrugelmir

Jenni_D said:

I wasn't comparing paying off a court judgment to avoid a CCJ being registered - of course that's what anyone should do. (Or avoid getting in that position in the first place, if it is within their power). I was comparing (per your own comment) the relative value of paying off or not a registered CCJ. I don't believe it will make that much difference as the CCJ will still remain on the credit file; it will merely become marked as Satisfied.

Once satisfied it starts to age. Already 3 years unsettled. That's a red flag to an underwriter. 

Jenni_D

Thrugelmir said:

Jenni_D said:

I wasn't comparing paying off a court judgment to avoid a CCJ being registered - of course that's what anyone should do. (Or avoid getting in that position in the first place, if it is within their power). I was comparing (per your own comment) the relative value of paying off or not a registered CCJ. I don't believe it will make that much difference as the CCJ will still remain on the credit file; it will merely become marked as Satisfied.

Once satisfied it starts to age. Already 3 years unsettled. That's a red flag to an underwriter. 

Sorry but that makes no sense ... it starts to "age" as soon as it is registered, and gets removed from the file once 6 years have elapsed.

It seems we have a fundamental difference of opinion so there's no point in either of us commenting further as we'll not agree.  

Thrugelmir

Jenni_D said:

Thrugelmir said:

Jenni_D said:

I wasn't comparing paying off a court judgment to avoid a CCJ being registered - of course that's what anyone should do. (Or avoid getting in that position in the first place, if it is within their power). I was comparing (per your own comment) the relative value of paying off or not a registered CCJ. I don't believe it will make that much difference as the CCJ will still remain on the credit file; it will merely become marked as Satisfied.

Once satisfied it starts to age. Already 3 years unsettled. That's a red flag to an underwriter. 

Sorry but that makes no sense ... it starts to "age" as soon as it is registered, and gets removed from the file once 6 years have elapsed.

It seems we have a fundamental difference of opinion so there's no point in either of us commenting further as we'll not agree.  

Settled is better than unsettled. Never been any different in all my years in finance. 

Slithery

Jenni_D said:

Thrugelmir said:

Jenni_D said:

I wasn't comparing paying off a court judgment to avoid a CCJ being registered - of course that's what anyone should do. (Or avoid getting in that position in the first place, if it is within their power). I was comparing (per your own comment) the relative value of paying off or not a registered CCJ. I don't believe it will make that much difference as the CCJ will still remain on the credit file; it will merely become marked as Satisfied.

Once satisfied it starts to age. Already 3 years unsettled. That's a red flag to an underwriter. 

Sorry but that makes no sense ... it starts to "age" as soon as it is registered, and gets removed from the file once 6 years have elapsed.

Just because a default drops off your file doesn't mean that you don't still owe the money, just that you can't be taken to court to have it recovered. When applying for a mortgage a lender will still ask about all outstanding debts.
I'm pretty sure that most people in this situation just keep quiet as the lender has no way to prove otherwise but legally shouldn't the debts be declared?

Thrugelmir

Slithery said:

Jenni_D said:

Thrugelmir said:

Jenni_D said:

I wasn't comparing paying off a court judgment to avoid a CCJ being registered - of course that's what anyone should do. (Or avoid getting in that position in the first place, if it is within their power). I was comparing (per your own comment) the relative value of paying off or not a registered CCJ. I don't believe it will make that much difference as the CCJ will still remain on the credit file; it will merely become marked as Satisfied.

Once satisfied it starts to age. Already 3 years unsettled. That's a red flag to an underwriter. 

Sorry but that makes no sense ... it starts to "age" as soon as it is registered, and gets removed from the file once 6 years have elapsed.

Just because a default drops off your file doesn't mean that you don't still owe the money, just that you can't be taken to court to have it recovered. When applying for a mortgage a lender will still ask about all outstanding debts.
I'm pretty sure that most people in this situation just keep quiet as the lender has no way to prove otherwise but legally shouldn't the debts be declared?

Failure to declare is fraud. Not advisable as will lead to far more long term reputational damage if detected. 

steampowered

Jenni_D said:

Would it? Would a prospective credit provider really treat a Satisfied CCJ any better than one that is still open? (Maybe some will, but I don't think it is as clear cut as you're espousing).

Yes, many lenders will require the CCJ to be satisfied. 

The problem with having an outstanding CCJ is that the creditor could take action at any time to demand immediate repayment of the debt.

In addition, the creditor could seek a "charging order" to secure the debt against the property. In theory the creditor could even seek an order that the house is sold to repay the debt - it is unlikely they would get that over a small debt, but its not impossible, and is is a risk for the lender. 

Also, the fact that a debt exists will be taken into account into the lender's affordability calculations. When you have debt the lender will assume you must pay a certain amount each month towards that debt and therefore the amount you can borrow is reduced.

csgohan4

Thrugelmir said:

Jenni_D said:

Thrugelmir said:

Jenni_D said:

I wasn't comparing paying off a court judgment to avoid a CCJ being registered - of course that's what anyone should do. (Or avoid getting in that position in the first place, if it is within their power). I was comparing (per your own comment) the relative value of paying off or not a registered CCJ. I don't believe it will make that much difference as the CCJ will still remain on the credit file; it will merely become marked as Satisfied.

Once satisfied it starts to age. Already 3 years unsettled. That's a red flag to an underwriter. 

Sorry but that makes no sense ... it starts to "age" as soon as it is registered, and gets removed from the file once 6 years have elapsed.

It seems we have a fundamental difference of opinion so there's no point in either of us commenting further as we'll not agree.  

Settled is better than unsettled. Never been any different in all my years in finance. 

I agree, a lender takes everything into account, if you have two borrowers one has an unsettled and another one has a settled CCJ, the primary will be seen more a riskier client given their attitude to debts and money.  Pretty black and white in this scenario

https://www.citizensadvice.org.uk/debt-and-money/borrowing-money/county-court-judgments-and-your-credit-rating/