Should I get a Mortgage or wait?

Kyleiiii

Hi 
I am 26, live with parents. I have a 12.5k deposit saved up for a mortgage, I earn 40K a year, and live in Manchester. I want to get a mortgage however I have a CCJ from a parking fine when I was young which expires May 2024. I have little debt, only a mobile phone. My question is, should I just get a mortgage now, or will a CCJ make such a difference that I should wait until it clears? I have been told I can get a house, however only with a 10% deposit. I’m not sure how interest rates are affected and I guess that is my question here. Should I wait or just go for it now? Thanks

CliveOfIndia

Having a CCJ on your file is less than ideal - however, if it's quite old then its effect will be diminished (assuming there are no other negative markers on your file).

What may be more of an issue is a lack of credit history.  If your only debt is a mobile contract, then a lender has very little data available on which they can assess you.  The usual advice in this situation is to get a credit card (you may find you're only able to get a credit-builder card).  Use it for routine spending (food, petrol, whatever), and always pay it off in full every month, without fail, when the statement arrives.  This will gradually start to build up a favourable credit history, which a lender likes to see.  Obviously, your credit history is assessed in conjunction with a whole host of other factors such as income, existing debt, and many others - but it's an easy (and free) way of starting to improve your chances.

All that aside, I guess the other consideration is what house prices and prevailing interest rates will look like in 6 or 12 months' time compared to now.  Unfortunately I have misplaced my crystal ball, so can't offer much advice on that one

Herzlos

If you find an ideal house before May and can afford it then go for it. You may get a slightly better rate or more options with the CCJ but as said it's nearly expired now anyway. You can always get a short-ish (1 or 2 year) fixed rate term and re-finance it later.

You may also find that if you start trying to buy now, you may not actually be exchanging any money much before May anyway depending on the seller and how smoothly everything goes.

MrFrugalFever

If your CCJ will be removed from your credit reports in May 2024 (assuming is to be 6 years old at that point) then i'd simply wait, you are only talking 6 months. Use the 6 months to build a credit history - perhaps spend a little on a credit card each month but always pay back in full.

[Deleted User]

@Kyleiiii what are your thoughts now ?