Getting a loan with a CCJ - likelihood?

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georgiaclairepatrick
georgiaclairepatrick Posts: 5 Forumite
in Loans
Hi all,

It is looking like that I may have to get a car soon as my old one is on its last legs. I'm looking into getting a loan for a car, around the 10k mark as I want a reliable car that will last me a while. My biggest worry is that I have a CCJ which (I know everyone says this, but this did really happen) I didn't find out till August last year, and once I found out I paid the same day. The CCJ was issued August 2016 and I paid it August 2017, it was for the amount of £250 and is showing as satisfied on my experian report.

I've been talking to lots of people about the likelihood of being accepted for the loan as I don't want a ding on my credit report because I was rejected. My current bank account is with HSBC which I have had since I was 11 years old (14 years with the same bank). I've been told by friends and family that i'm more likely to get a loan with HSBC as they 'know me', however, after doing lots of reading, it isn't looking like I will be able to get a loan with my current CCJ and also that HSBC are 'picky lenders'. My friends and family think i've been fear mongering myself and but I think i'm just being informed.

I just want to know if anyone can shed light on the likelihood of being accepted by HSBC for a 10k loan with a CCJ? Or has anyone had any positive/negative experiences with getting a loan with a CCJ?

Other info:
  • Will be working for my current job 3 years next month.
  • Currently earning nearly 30k a year.
  • 25 years old.
  • I have nearly 9k saved, however, it is for a house deposit (i'm hoping that will show that I have back up money if I lose my job - maybe a positive?).
  • Work in state education as a teacher.

Any advice would be helpful as this is getting me down a bit :(
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Comments

  • bobbymotors
    bobbymotors Posts: 746 Forumite
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    Use the 9K youve got saved and save the repayments you won't be making.

    so...5yr loan of £10,000 put £200 month away for 5 years instead by STO into a savings account, you've got £12,000, and a car worth probably £4000.

    And by the end of it the CCJ will have dropped off your report
  • georgiaclairepatrick
    georgiaclairepatrick Posts: 5 Forumite
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    bobbymotors wrote: »
    Use the 9K youve got saved and save the repayments you won't be making.

    so...5yr loan of £10,000 put £200 month away for 5 years instead by STO into a savings account, you've got £12,000, and a car worth probably £4000.

    And by the end of it the CCJ will have dropped off your report

    I will be using that money in the next 6 months to put a deposit down on a house so I can't really touch it unfortunately. I think I may have to just get another 'banger'!
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    First Anniversary Name Dropper First Post I've been Money Tipped!
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    So with a CCJ you want a 10k car loan and a mortgage?
    Sorry but thats unlikely to happen.
  • sourcrates
    sourcrates Posts: 28,885 Ambassador
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    edited 21 May 2018 at 11:19PM
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    Go with advice in post #2.

    Thats your best bet.

    CCJs dont sit well with mortgage lenders, Im not saying it will be impossible but.........
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • System
    System Posts: 178,094 Community Admin
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    A £10k loan will reduce the amount mortgage lenders will lend to you as well.
  • Sncjw
    Sncjw Posts: 3,509 Forumite
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    If your getting a mortgage within 6 months a car loan won!!!8217;t be favourable as they will be assessing you on affordability. Also it!!!8217;s their affordability criteria not because you can afford it. Why can!!!8217;t you save a bit more or use public transport and save for a car
    Mortgage free wannabe 

    Actual mortgage stating amount £75,150

    Overpayment start date 1/3/23.

    Starting balance £66,565.45

    Current balance £63,787.16

  • Sncjw
    Sncjw Posts: 3,509 Forumite
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    That ccj will make it harder to get a decent mortgage but add a ten k loan is really difficult
    Mortgage free wannabe 

    Actual mortgage stating amount £75,150

    Overpayment start date 1/3/23.

    Starting balance £66,565.45

    Current balance £63,787.16

  • tonycottee
    tonycottee Posts: 1,331 Forumite
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    Agree with others.
    Getting a mortgage with a CCJ will be quite difficult. A £10k loan on top of that would make it almost impossible.
    You can get a loan when you have a CCJ on file, but expect to pay through the nose.
  • Herzlos
    Herzlos Posts: 14,688 Forumite
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    If you're just about to pull the trigger on a mortgage the car loan is a bad idea, even without the CCJ.


    Go and spend £1k or less in cash on a replacement car, or keep yours going a bit longer. The odds are that unless it's failing to get you to work regularly, that you can get at least until the next MOT runs out out of it.
  • poppasmurf_bewdley
    poppasmurf_bewdley Posts: 5,909 Forumite
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    A grand will get you a car that should last a year. Try looking at Mondeo, Focus, Astra, etc.

    My 10 year old Mondeo Mk4 is still going strong with more than 100K on the clock in the hands of my son. Previous to that, the previous Mk3 did the same. And they deliver 43mpg on diesel day in, day out.

    Spending £10k is going into la-la land when you don't need to.
    "There are not enough superlatives in the English language to describe a 'Princess Coronation' locomotive in full cry. We shall never see their like again". O S Nock
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