CCJ and mortgage advice needed
Discussion
Afternoon all. My brother is looking at buying a house with his partner in the next year or so. He has recieved a claim form against him for around 6000 pounds (a loan from around 5years ago that he couldn't pay when he lost his job. He is now working) If he does not pay this then a CCJ will be issued against him. He has around 2000 pounds in savings. I would be willing to lend him the other 4000 to avoid getting a CCJ. My question is what is the best solution? Pay off the 6000 to avoid the CCJ or offer the creditor his 2000 and take the CCJ as his credit score isn't that good anyway and maybe wait an extra year before looking for a mortgage? Thanks in advance, Dan
sideways dan said:
Afternoon all. My brother is looking at buying a house with his partner in the next year or so. He has recieved a claim form against him for around 6000 pounds (a loan from around 5years ago that he couldn't pay when he lost his job. He is now working) If he does not pay this then a CCJ will be issued against him. He has around 2000 pounds in savings. I would be willing to lend him the other 4000 to avoid getting a CCJ. My question is what is the best solution? Pay off the 6000 to avoid the CCJ or offer the creditor his 2000 and take the CCJ as his credit score isn't that good anyway and maybe wait an extra year before looking for a mortgage? Thanks in advance, Dan
If he incurs the CCJ he'd struggle to get a mortgage until at least two years after the date of registration. Then when it's two years old it would still need to be satisfied and would need to have a minimum of a 20% deposit for a lender to consider him.So, if he wants to buy a house anytime soon, pay it off.
CCJ will kill his chances stone dead of getting a mortgage in the next seven and a half years. Not a chance, unless he's borrowing from Big Vern at silly rates.
What's his credit record like aside from that? A default on a loan might have killed it anyway, so he would be throwing good money away.
I'd have a good hard look at what the agencies hold on him right now, and decide from that what the best course of action is. Might be take the CCJ and rent for a while, might be make an partial offer in full and final for the delinquent loan, might be pay it all off.
Obviously the right thing would be to pay it all off, as he agreed to, but if that doesn't move him forwards in terms of the credit record, what's his incentive?
What's his credit record like aside from that? A default on a loan might have killed it anyway, so he would be throwing good money away.
I'd have a good hard look at what the agencies hold on him right now, and decide from that what the best course of action is. Might be take the CCJ and rent for a while, might be make an partial offer in full and final for the delinquent loan, might be pay it all off.
Obviously the right thing would be to pay it all off, as he agreed to, but if that doesn't move him forwards in terms of the credit record, what's his incentive?
The debt was bought by hoist portfolio from Santander. They have put a claim in with Northampton county court which will result in a CCJ if not paid off in full. We can offer a part payment but that will result in a CCJ. But because of his bad credit it might just be worth doing it that way as he'll struggle to get a mortgage
sideways dan said:
The debt was bought by hoist portfolio from Santander. They have put a claim in with Northampton county court which will result in a CCJ if not paid off in full. We can offer a part payment but that will result in a CCJ. But because of his bad credit it might just be worth doing it that way as he'll struggle to get a mortgage
Have you actually spoken to them, and they have rejected both partial payment, and payment over a period of time? If so, print that out, or print out a timeline of the conversations, and wander down to the local court - you have asked for the hearing to take place at a local court, haven't you? The Judge will not take kindly to hardball being played with a poor innocent who bothers to turn up to court, and you might get away with a payment plan rather than a CCJ.
Phone the company and ask what they will accept as full and final payment.
This should help slow/stop it reaching court.He should have had the court summons papers, read through them carefully because they will explain various options.Best not getting the CCJ in the first place but it can quite easily be wiped once an agreed amount has been paid. Good luck with it.
This should help slow/stop it reaching court.He should have had the court summons papers, read through them carefully because they will explain various options.Best not getting the CCJ in the first place but it can quite easily be wiped once an agreed amount has been paid. Good luck with it.
Sarnie said:
If he incurs the CCJ he'd struggle to get a mortgage until at least two years after the date of registration. Then when it's two years old it would still need to be satisfied and would need to have a minimum of a 20% deposit for a lender to consider him.
Interesting.Just double-checking, why is a "satisfied" CCJ any issue? And where does "at least two years" come from?
Claudia Skies said:
Sarnie said:
If he incurs the CCJ he'd struggle to get a mortgage until at least two years after the date of registration. Then when it's two years old it would still need to be satisfied and would need to have a minimum of a 20% deposit for a lender to consider him.
Interesting.Just double-checking, why is a "satisfied" CCJ any issue? And where does "at least two years" come from?
Sarnie is a very experienced mortgage broker!!
Claudia Skies said:
Interesting.
Just double-checking, why is a "satisfied" CCJ any issue? And where does "at least two years" come from?
Why is a satisfied CCJ an issue? Because it's still a CCJ..........one rung down from an Unsatisfied CCJ.Just double-checking, why is a "satisfied" CCJ any issue? And where does "at least two years" come from?
Two years comes from the period of time required before a mortgage lender, who I've used extensively for clients with historic defaults and CCJ's, would consider the application.
Historic defaults and CCJ's aren't deal breakers for mortgages but they do need to be historic (more than two years) and minimum deposit of 20%...........
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