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Can we still get a mortgage with a CCJ

(13 Posts)
user31101993 Fri 08-Jul-16 14:34:15

My partner has until September 16 to come to an agreement with his creditors on payments, they don't want to accept anything and he will have to go back to court in September and be given a CCJ ! Can we still get a mortgage after this?!

AnchorDownDeepBreath Fri 08-Jul-16 14:39:59

When are you looking to try?

It's unlikely that you'll get a mortgage with a recent unsettled CCJ. I think he'll get 14 days to settle the CCJ and have it removed but it doesn't sound like that will be possible. He can satisfy it later and the status will update but it'll remain on his file for 6 years. As it gets older, if the rest of his credit is good, he might be able to get a mortgage - he's likely to get subprime rates for a while, though. Does he have defaults already? How is your credit?

SaveSomeSpendSome Fri 08-Jul-16 14:45:07

My aunt and uncle did. My uncle in particular has afew ccj and balliffs regularly attend their house which is why they cannot park outside their house incase their car gets lifted

However their interest rate is really really high

LBOCS2 Fri 08-Jul-16 14:46:09

Get the mortgage now, before the CCJ is applied?

SaveSomeSpendSome Fri 08-Jul-16 14:47:47

Their interest rate was about 7.5%

So on a £85,000 house they are paying just over £600 a month

user31101993 Fri 08-Jul-16 14:52:06

His credit is good apart from this! Basically someone sued him for something that wasn't really his fault but he was involved. The plan was to save for a mortgage and get one in a few years we are only 23! I'm worried it's going to ruin our lives confused

user31101993 Fri 08-Jul-16 14:53:01

The amount is over £18,000 so it's not something we can just pay off quickly blush

SaveSomeSpendSome Fri 08-Jul-16 14:56:46

It wont ruin your lives but you may have to go through different loop holes to get what you want in life.

For example having everything in your name if you want to apply for credit for something.

Saving like crazy for a deposit and putting a massive chunk down can sometimes make lenders borrow to you with bad credit if you have a massive deposit (50-60k)

SaveSomeSpendSome Fri 08-Jul-16 14:58:12

Alot dont have joint bank accounts or anything in a joint name as the ccj will then affect you as you would be then finanically linked to him if you have somethign in a joint name.

So you may have to get a mortgage in your name only if a lender wont lend to you

AnchorDownDeepBreath Fri 08-Jul-16 15:55:30

I think I managed to delete some of my post - To clarify, the CCJ won't disappear in 6 years, it'll remain until it's settled, and the settled CCJ will eventually be removed. If it's never settled, it'll stay.

If it's for £18k, it's quite likely that the creditor will try to enforce the CCJ. Does he work? Has he been told about an attachment of earnings, etc?

If it's not something he should be liable for, he really needs to get a good defence together and defend the CCJ.

As said above, it won't ruin your life, but it'll make credit harder. You'll need to avoid any joint financial products or it'll affect you too, and you might need to get a mortgage only in your name (so his income is unlikely to be taken into account), or it may be a higher rate. There are ways, though.

user31101993 Fri 08-Jul-16 16:20:45

He's self employed so an attachment wouldn't be possible and already most things are in joint names. Thank you all so much for your advice I've been going out of my mind. Do you think getting a loan and paying it off is a good idea? Thanks again xx

mortgagefreesoon5 Sun 10-Jul-16 04:16:16

I'd speak to Step Change, they are free, and they might be able to offer advice. I personally wouldn't get a loan to clear his debt.

sprockermummy Sun 10-Jul-16 05:56:43

From my experience in my workplace, I work in finance company and deal with incoming credit file queries, customers are advising us that CCJs and defaulted accounts is causing them to not be able to get a mortgage.
Of course I can only see our impact on their credit file so unsure if this is indeed correct and not other issues.
What I can say is I agree with the other comments that if it's settled within 14 days then it will be removed all together, otherwise it will show on credit file for 6 years.
With the uncertainty in the economy at present I'm hearing that lenders across the board are being more cautious than historically though by the sounds of things this will have settled by the time you are looking for

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