CCJ and mortgage advice needed

CCJ and mortgage advice needed

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sideways dan

Original Poster:

265 posts

214 months

Wednesday 4th March 2015
quotequote all
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

Sarnie

8,025 posts

208 months

Wednesday 4th March 2015
quotequote all
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.

sideways dan

Original Poster:

265 posts

214 months

Wednesday 4th March 2015
quotequote all
That's what I thought to be honest. Just wish he'd told me about it sooner so we could have got it sorted before it got this far! Thanks for the advice, much appreciated.

randlemarcus

13,507 posts

230 months

Wednesday 4th March 2015
quotequote all
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?

Soov535

35,829 posts

270 months

Wednesday 4th March 2015
quotequote all
Contact the lender and apologise, and offer a reasonable instalment plan. That way you don't have to lend to him, and he will not have a CCj against him.

To be honest though his credit rating is already FUBAR'd.

sideways dan

Original Poster:

265 posts

214 months

Wednesday 4th March 2015
quotequote all
As I said his credit score is pretty low to start with so not sure he'd be able to get a great deal if at all on a mortgage. Unfortunately we only have 8 days to sort it before it goes to the judge

Soov535

35,829 posts

270 months

Wednesday 4th March 2015
quotequote all
sideways dan said:
As I said his credit score is pretty low to start with so not sure he'd be able to get a great deal if at all on a mortgage. Unfortunately we only have 8 days to sort it before it goes to the judge
Call the lender, offer instalments. They will likely accept.

sideways dan

Original Poster:

265 posts

214 months

Wednesday 4th March 2015
quotequote all
Is it possible to call them and stop the CCJ though. I thought as the claim is already in process the only outcomes are pay the whole thing or offer instalments which would incur a CCJ

Sarnie

8,025 posts

208 months

Wednesday 4th March 2015
quotequote all
Soov535 said:
Call the lender, offer instalments. They will likely accept.
Doesn't sound like it's with the lender any more..............

randlemarcus

13,507 posts

230 months

Wednesday 4th March 2015
quotequote all
Sarnie said:
Doesn't sound like it's with the lender any more..............
Even better. Whoever bought it will have paid pennies on the pound, so will be happy as a pig in muck with half of the original amount, even over six months.

Soov535

35,829 posts

270 months

Wednesday 4th March 2015
quotequote all
randlemarcus said:
Sarnie said:
Doesn't sound like it's with the lender any more..............
Even better. Whoever bought it will have paid pennies on the pound, so will be happy as a pig in muck with half of the original amount, even over six months.
Disco.


sideways dan

Original Poster:

265 posts

214 months

Wednesday 4th March 2015
quotequote all
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

randlemarcus

13,507 posts

230 months

Wednesday 4th March 2015
quotequote all
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.

sideways dan

Original Poster:

265 posts

214 months

Wednesday 4th March 2015
quotequote all
Afraid not, he has ignored every phone call and letter that they have sent to him. Thought they'd go away. Idiot!

sideways dan

Original Poster:

265 posts

214 months

Wednesday 4th March 2015
quotequote all
There is only an actual hearing if you dispute the amount, otherwise judge just looks at your i comings and outgoings and decides what you can afford!

spadriver

1,488 posts

170 months

Wednesday 4th March 2015
quotequote all
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.

Claudia Skies

1,098 posts

115 months

Thursday 5th March 2015
quotequote all
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?

Soov535

35,829 posts

270 months

Thursday 5th March 2015
quotequote all
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?
A satisfied CCJ still smashes your credit rating.

Sarnie is a very experienced mortgage broker!!


Sarnie

8,025 posts

208 months

Thursday 5th March 2015
quotequote all
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.

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%...........

Claudia Skies

1,098 posts

115 months

Thursday 5th March 2015
quotequote all
Ta! smile