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Original poster

Question about bad credit and motgages

15 replies

Nutcracker · 07/04/2004 22:56

Myself and dp both have a bad credit history and still owe different people (credit cards and catolouges). We also have ccj's.
If we were to clear it all and pay everyone off, would we then be able to get a mortgage or would we still be considered to have bad credit history ??

OP posts:
MRSW · 07/04/2004 23:07

you could geta mortage but you'd need at least a 10% deposit

HiddenSpirit · 07/04/2004 23:44

I think it stays on your credit record for 5 years Nutty, although I could be wrong. There are lenders out there that are specifically for people with bad credit rating/ccj's etc. I don't know much about them, but I would think they may have a higher interest rate and as MRSW says, they may also want a hefty deposit. You could look into these lenders and do a comparision with each of them & also with "ordinary" lenders just to see what you're looking at.

I wish we could afford to go that route, but with only me working at mo, and part time at that, we wouldn't get a mortgage for a cardboard box

treacletart · 07/04/2004 23:53

when we got our mortgage my dh had a CCJ. We had to prove he'd payed the debt and (if I remember right) got a "certificate of satisfaction" from the court that raised the ccj - we got a good deal from the Nationwide and had a 5% deposit. Dont know how it works if you have more than one CCJ but I'm pretty certain clearing the debts and being upfront about your history counts in your favour.

Original poster
Nutcracker · 08/04/2004 11:14

Oh right, well thanks anyway.
We couldn't really afford a mortgage for anywhere we would wnat either HS.
I just thought it may be something to consider for the future when i am working too.

OP posts:
HiddenSpirit · 08/04/2004 21:07

Well if I'm right about the 5 years on your record, the chances are you will have saved enough and be clear of ccj's by the time you start looking to buy

What about shared ownership? I have no idea how they work though.....

Original poster
Nutcracker · 08/04/2004 21:24

You know when you say that the ccj's stay on for 5 years, is that if they have been payed or not. I mean do they dissapear even if you don't clear them ????? Surely not ??

OP posts:
Original poster
Nutcracker · 08/04/2004 21:26

Shared ownership is when you buy a percentage of the property, say 50 % (have a mortgage for it) and then you rent the other half from a H/A. Then you can usually increase you r percentage as you go along until you eventually own the property.

OP posts:
CookieMonster · 08/04/2004 21:48

Nutcracker, I work at Equifax so here is a bit of info about CCJs and your credit file. First of all, a CCJ stays on your file for 6 years unless you pay it off within 28 days and then it wouldn't show at all. Even after your CCJ has been paid off it stays on your file with a status of 'satisfied' and would still affect your credit rating. You almost certainly wouldn't be able to get an unsecured loan but since a mortgage is a secured loan, you would most likely be able to get one but it wouldn't be such a good deal - mortgage brokers would be your bet because they deal with lots of different lenders.
After 6 years the CCJ will disappear from your credit file even if it not paid but if a company has not chased a debt after all that time then they will either have written it off or most likely sold it on to a debt collection agency.
Don't suppose any of that helps you really but just wanted to clear a few things up.

Original poster
Nutcracker · 08/04/2004 22:13

Oh thanks for that CookieMonster. Most of the ccj's have been on there for 3 years already, and most have not tried to make us pay. Alot of them sent letters saying they wouldn't bother until i am working.
I did owe Barclaycard but when i got a loan with my bank just before xmas, they took the 650 i owed them out of my account without telling me.
I was quite annoyed, but i owed them so..
They had put an indicator on my account which was set up to tell them when i had enough money.
I am amazed that i managed to get a loan too. My bank said it was because i am a good customer and run my account well. They said i could have 12000, luckily i wasn't stupid enough to take them up on it.
I think it's probably dp's credit rating that is worse, and he will never do anything about it.

I either need to win the lotto or marry a millionaire

OP posts:
HiddenSpirit · 08/04/2004 22:55

This may seem a bit stupid of me, but how do you get ccj's? Do you get informed you have them, or are they just put on your record?

Freckle · 09/04/2004 22:26

A ccj is a county court judgment. It means that someone has sued you through the county court for monies owed and have had a judgment entered against you. If you pay off the judgment in full within one month of the date of the judgment, the ccj never appears on your record. If you don't pay it off in full, it will appear in the county court records and will affect your credit rating. Even if you pay it off in full shortly after the month has expired, the ccj will stay there for a number of years (used to be 5 years, not sure of current period). Once the amount due has been paid in full, you can apply to the court for a certificate of satisfaction, which basically says that no more monies are owed and you can show any would-be creditor this certificate to show that the judgment has been satisfied.

HiddenSpirit · 09/04/2004 23:42

Thanks Freckle

Freckle · 10/04/2004 08:42

I meant to add that if you have been sued, you should have received a summons, which you either ignored and judgment was entered in default of a defence, or sent in a defence and the court ruled against you. If you find you have a ccj about which you know nothing, you can apply to the court to have it set aside on the basis that you did not have the opportunity to defend it. It can sometimes happen that the summons was sent to a wrong/old address or got lost in the post.

eddm · 10/04/2004 09:07

Hope this is good news but we got a mortgage last Dec despite stupid hubby getting a CCJ two years ago. Was paid off the minute he told me about it but not fast enough to avoid it going on credit history (he hadn't bothered to open his post for ages). And mortgage is with a high street lender - Abbey. Mortgage broker had to work hard though and we were turned down by our older lender, Woolwich. Who were pretty cr*p anyway so glad to get away from them. But positive message is high street lenders will look at you if you've paid CCJs off. One thing broker suggested was getting mortgage in my name only as my credit history is OK - have you both got CCJs or are they in one name?

goodkate · 10/04/2004 15:04

As an ex mortgage broker, I suggest you find a couple or three very good mortgage brokers. More and more lenders these days accept CCJ's and mortgage rates have dropped a lot over the past 5 years too. Check the small print, the time you are tied in, and all the additional charges. Brokers get paid more for adverse credit mortgages so be aware you don't pay too much. Never pay a mortgage broker up front if you can help it either. Woman tend to be more honest and straightforward in this line of work. (sexist I know). I am now an ex broker so can't advise but drop me an email if you get stuck.

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