AIBU to think I won't get a mortgage(24 Posts)
So we live in a tiny 2 bed house, i had baby number 2 earlier this year and we are so cramped. Really this house is fine for a couple starting on the property ladder and we did ok with just one child but we really want to move in the next 12 months.
The house is in my partners name he has had a mortgage for over 10 years and has a fair bit of equity. We both have a decent salary (but not rolling in it by any means)
Dp had a quick chat with his mortgage company over the phone and they said with our combined income we could borrow £150k so we could look at greeting a house upto the value of £210k
Dp had excellent credit history and any debt is managed and paid on time.
I unfortunately have a ccj against my name. It's paid off but will remain on my report for another 3 years. Other than that I don't have anymore debt or black marks.
Dp didn't mention this to mortgage advisor and doesn't seem to thinkits a problem.
But I do, I think when it comes to it we will be told no because of me!
Anyone been in a similar situation?
I don't know. Mortgages are harder to get now, but I think you should be alright with his credit rating and your recent history. They might try to penalise you with the rate you are able to get, but I think you should be alright. How long ago was the CCJ itself?
If you go through a broker and are prepared to pay a bit more on your rate then I don't see why you wouldn't get a mortgage. But you need to be honest - if they find out halfway through the application (and they will!) then they'll withdraw the offer, which then means you've got a credit search on your history...
jdoe, why are you so bothered? Surely lack marmite is much more significant a threat to a stable Britain?
I've had the ccj for just over 3 years. Dp won't be happy if it means a higher interest rate he is constantly checking interest rates on things to get the best deal.
I think DP definitely needs to let his Mortgage Advisor know about the CCJ - it could make a huge difference as some lenders will allow them and some won't.
I think you would be better speaking to an Independent Broker to see what deals they could get for you but I would also be prepared to pay a slightly higher interest rate.
Use a broker. Don't go straight to an advisor at the bank, they may suggest things will be alright, but it's not them who make the decisions, it's the underwriters. A broker will find you a lender who will be willing to lend in your situation but you might not get the 'best' rates.
As above, decare everything upfront so a broker can apporach appropriate lenders and avoid wasting time. I had 'unusual' financial circumstances last year when I bought and it came donw to only two lenders who would consider me but I did get the mortgage (despite the scaremongers on money saving expert telling me it would never happen...).
So we won't be considered first time buyers as he already has a mortgage, a friend has suggested an independent broker that he used last year (god knows what he will charge) soi think we need to book an appointment with him.dp has never had CCJs or arrears so I don't think he understands how serious they are
Please go to a good broker, they will often see you and have an initial appointment for free. It wont be impossible my any means but you might have to use a "not high street" lender.
Get a free credit check app like middle and then you can see how it is affecting you. It does need mentioning and will likely affect rates BUT if it's been paid up fully it won't be as bad as if it was still outstanding.
I think you need to check with an expert - you better come clean straightaway with mortgage advisor, easier earlier rather than later
I used a broker who was completely free and got his fee from the lenders he worked with. Worth his weight in gold got us an amazing rate and so easy to work with
I wouldn't be worried too much. I had a CCJ about 15 years ago over council tax. Basically, I'd kept my standing order to pay the bill but the council didn't tell me they'd changed their bank details. I never got any letters about council tax because our post was awful at the time, we were constantly missing letters. They got a CCJ against me and when I found out, I started paying it off.
When me and DP got our mortgage, the bank were aware of my CCJ but had no issue with it as they could see from their records that I'd regularly paid off the debt and had a good history otherwise. Plus me and DP were both in stable jobs and had a good income between us.
I agree that you should go to a broker, they'll know the mortgage providers who are most likely to be able to give you a mortgage with a CCJ against your name, plus then get you the best one which is available to you both. I don't have CCJs but had a couple of times when I missed payments on a credit card, as had forgotten to set up a Direct Debit, which were effectively black marks against my name (but my partner has perfect credit score), and my broker told us who was the most lenient at the time of applying which was a weight off our shoulders.
Might cost you a couple hundred pounds for the service but I always find it's money worth spending as they can get you better deals than you'd find yourself anyway.
It's only for £450 so stupid I did that but it was just before I returned to work from Mat leave from dd1. I kept ignoring letters then next thing I know they gave me a ccj and threatened me with bailiffs! I told dp and he went mad saying I should have told him and he would have paid it. So I paid it then before the bailiffs came. I don't think dp understands the seriousness of bad credit coz he's such a good boy!
You need to be upfront about ANYTHING that will affect the underwriting, and that definitely includes CCJs. An independent financial adviser may charge a fee or may be paid by the lenders as Batteriesallgone suggests, but either way, they will have access to a great many different products and will do an in-depth financial breakdown of your income and outgoings. (They would tell you at outset how they would be paid as well, so if you are concerned about fees you would know before you committed to anything.) Your DP's current mortgage provider may well be the way to go, but it doesn't do any harm to check around.
We used Which? as our mortgage broker and they were excellent and a good price. DH is a company director so not possible to go direct to the high street.
The rate is the rate, and just because a bank advertises a low rate it doesn't mean that everyone gets that rate. It's all about risk, so your DP is best off not bothering browsing rates yet.
Your CCJ probably will mean a higher rate. Just be sure to be confident you can afford the repayments even with a rate rise. You don't want to live in a lovely house stressed to the eyeballs over money.
I don't think it is very likely as you have a CCJ that's only 3 years old, but you never know. As advised, speak to a broker.
I would highly recommend London and Country as a broker - they have found us a mortgage twice and after an initial long phone call, did all the hard work finding us excellent deals.
Totally free too!
Definitely use a broker! They found some really tricky ways round some problems my sister had in getting a mortgage (not illegal I hasten to add).
Another vote for London and Country - and they get their fee from the mortgage provider so they are free to you as a customer. They've found me a cracking deal and they take care of a lot of the paperwork which is a total win too.
My husband and I both freelance and having saved tens of thousands of pounds (greater London) three years ago we trotted into a bank on our High Street and had our dreams and bubble burst as we were laughed out of the building for thinking that even with a 15% deposit we could get any mortgage at all with our financial background. We walked along the whole high street and had the same experience everywhere. It was devastating.
£250 for a broker and he was able to get us a mortgage deal through Halifax better than what they turned us down for on the high street, using the same information. Two years later at the end of our fixed rate period for another £250 he was able to renegotiate and save us £300 a month on our repayments. The up front cost is annoying (although with our broker - I'm guessing it's standard - he only got paid when he FOUND us a mortgage and had us approved) but I can't recommend them enough. If you get a good one it's worth every penny especially if your circumstances don't fit the standard mortgage company ideal of current times.
Good luck OP!
Try the Halifax. I had perfect credit rating but DH had a default so Natwest, Barclays and HSBC weren't keen on us.
From the beginning, Halifax were relaxed about it all and said no problem.
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