Credit history - any mortgage experts out there?

[financiallyembarrassed]

Hello

I have changed my name for this post for obvious reasons.... DH and I are trying to buy a house. We are currently renting. We sold my flat in 2005 and have only now found somewhere to buy. I am just in the process of applying for a mortgage and have looked at the application form for the one which I'd want. It asks about previous bad credit history. Dh had a CCJ for an unpaid access bill about 10 years ago (before I met him and licked him into shape financially).

It doesn't appear on his credit reference form as it's over 6 years ago and so I was wondering if it still need to be disclosed? If we did disclose it, would it mean that we wouldn't get the mortgage? If it helps, the mortgage is for about 2/3s of the price of the house, the rest being capital. We can supply info going back 5 years of payment of rent and mortgage etc, even though last mortgage was in my name alone, as I bought flat before I met DH.

Any advice? TIA

Hi .... I used to work for a mortgage lender, writing policy and often used to look at credit files.

You're right, after 6 years CCJs don't show up. As for disclosing it, be acreful. It really depends how the question on your particular lender's application is worded. If it's "have you EVER had a CCJ" and you lie, then technically you are committing mortgage fraud (as you are if you lie about anything on the application) and you will be taking the risk that if, somehow, they find out (though I admit the risk is small) your offer could be withdrawn ...... which, in itself, would probably then cause problems for further applications as a common question is "have you ever been turned down for a mortgage".

I'd say honesty is the best policy. It's very unlikely that this admission would affect your application now. All lenders have different criteria but your credit records will obviously be checked and day to day stuff like credit card payments only go back 3 years anyway. They will be interested in seeing that you have maintained a solid record of financial responsibility for that time and will recognise that you have done this.

Most lenders have their own internal "scoring" system. This varies but you will score highly for having a lower loan to value (i.e. large deposit) and good mortgage history. I really don't think you have anything to worry about.

Thanks Catsmother, that's very helpful. I suppose it's a Catch 22 but if I disclose it and then get turned down for not scoring highly enough, I have then been turned down for a mortgage . You are completely right, though, honesty is the best way forward and the last thing my stress levels need is mortgage fraud. I know strictly speaking they would be most unlikely to find out but I am a complete worrypot and would not relax if I thought they might come after us in the next 25 years!!

Really embarrassed about it, even though it's not my debt. Can't face asking any of my RL friends and am so thankful for the anonymity of the internet .

Thanks once again.

Hi, I'm a mortgage broker and i too would say declare it. If it doesn't matter to them they will ignore it, it's better than not declaring it and getting into trouble.

TBH, depending on how much it's for and when it was repaid, I wouldn't have thought it would make the slightest difference to your credit score.

hth

Thanks for that Orinoco. DH is rather vague about how much it was - says it was all too long ago and has blocked it out! Not very satisfactory I know but he is not the best with money. He says it was around £600, and I think he paid it off by instalments. What would happen if (worse case scenario) he hadn't paid it off? would we be completely stuffed?

I have a good payment record and the rental company can say we have always paid up here. Before that DH paid me half the mortgage as the flat was in my name. Will that do, do you think?

Thank you for your reassurance - much appreciated

Give me a few minutes, I need to load the software up. I'll be back.....

OK, so assuming you meet the other criteria such as income etc, I've put in a CCJ for £600 registered June 1996 and paid off Jne 2004. It's brought up 8700 different mortgage products, from lenders you've probably heard of such as Birm Mids, Chelsea, Leeds, Yorkshire Building Society and some you've probably not heard of but are subsidiaries of building societies like Platform and Salt. There's also a lot of what's known as sub prime lenders.

However, if it was paid off more than 6 years ago then I think you can safely assume that most lenders would ignore it.

I would suggest you go and see an independent mortgage advisor, who can sort through and find the best mortgage for you, taking into account your situation, what you want your mortgage to do and also things like the lender's reputation for customer service, turnaround times and their standard customer rate once any special deals have finished.

hth - give me a shout if you need any more info if you want.

Orinoco, you are a star! Thank you so much. I know DH is supremely embarrassed about it all and is worried we will never get a mortgage. It aslo doesn't help that he doesn't keep his records very well . However, onwards and upwards...

You can't recommend any good IFAs can you ? We are in London (live SE, work city)

Thanks again for all your hard work.

Sorry, I don't know London, I'm from ooop North! Put a shout out though, someone will be able to recommend one for you.