BTL mortgage and poor credit

[llamaanddrama]

Would greatly appreciate advice.

I bought a property outright nine years ago with money left to me. It’s worth maybe £140,000 - that’s possibly a generous estimate, to be fair, but to give a rough idea.

I now want to buy somewhere else with my husband, and we want to remortgage that property to release some equity to allow us to do this.

However, it seems my credit isn’t the best. It isn’t exactly terrible - on score alone it’s just under 500 - but obviously needs improvement. There’s a handful of missed payments which have been brought up to date now but weirdly and unbeknown to me there’s a CCJ there, dating from august 2016. Two of the three main credit companies have reported it but one has not (Experian.)

We are with a mortgage broker but I wondered if anyone might be able to advise the best way to proceed.

Well thank you but this is entirely different advice from everywhere else.

They’ve had over five years to send bailiffs so I am not too concerned about this.

From a mortgage point of view the CCJ will cease to exist from the lenders point of view once it drops off your file. The Martin Lewis mortgage board is v helpful with lots of of brokers who offer advice.

Indeed yes or any credit really. I’m just wondering about the interim as we do like the property.

But in any event since one credit checker doesn’t have a record of it I presume the mortgage broker can find a mortgage that uses this one … I hope.

You have to actively declare any CCJs, securing a mortgage on the basis of a false declaration would be fraudulent. Hasn't your broker told you this?

No, we’ve only had the one meeting. I’m sure that will come up at a later date if that is the case

Apocalypse is correct, a CCJ remains enforceable indefinitely. However after six years the creditor would need to apply to the court to enforce the debt, effectively restarting the six year period.

Everything online, from reputable debt companies, indicates that an extremely good reason would be needed to keep pursuing the debt after six years. I’m not concerned about this particularly. I am just wondering how likely it is I would be able to get a joint mortgage for a BTL.

As long as you declare your truthful credit history, including ccj and missed payments, If there is a lender who will lend to you, the broker should be able to match you. They wouldn't apply to a lender who has in their lending criteria no CCJ's for example.
There are more specialist lenders now who provide to people with bad credit and a good broker will be able to match you up. The only downfall is you will pay substantially more interest, however, if your late payments and ccj will fall off say in 18 months, taking a 2 year fixed deal and then remortgaging once your payment faults have dropped off your score, you should be able to then benefit from a more mainstream lender and better rates.

Thanks, that’s what we are hoping.

@user1496951411

As long as you declare your truthful credit history, including ccj and missed payments, If there is a lender who will lend to you, the broker should be able to match you. They wouldn't apply to a lender who has in their lending criteria no CCJ's for example. There are more specialist lenders now who provide to people with bad credit and a good broker will be able to match you up. The only downfall is you will pay substantially more interest, however, if your late payments and ccj will fall off say in 18 months, taking a 2 year fixed deal and then remortgaging once your payment faults have dropped off your score, you should be able to then benefit from a more mainstream lender and better rates.

This is basically what I'm doing, I've taken a 5 year fixed rate at around 4%

@HalzTangz
We have a BTL property, put your Tennant on a rolling one month contract. You only need to give one month's notice then, but any sensible Tennant will start looking elsewhere when a for sale board goes up

It's 2 months notice for landlords on a periodic tenancy in usual times. Not sure what it is at present due to covid.

Apparently it is two months again from the first of august so that is useful to know.