Mortgage advice/problem
Discussion
Myself and the GF are in the process of finishing off saving for a house deposit and looking into mortgages at the end of the year to coincide with a local development finishing. GF has just done a credit check and although her actual report is clear, now there is a note on a previous address. The last credit check she did was about 18months ago and was completely clear.
After looking into it, it would appear her Ex has defaulted on a loan she stupidly was guarantor on when they used to live together (was a rented flat). They haven't been together for 5 years but the loan is showing up as a CCJ on that address from Feb 2007.
Now i know technically a CCJ will effect us but do you guys know to which degree?
Also is there a way to look into it without basically phoning the loan people, the worry with that is that they will then have her details and chase her for the money (which they currently aren't doing). This is the first she has known about it.
If we do get shafted and need to pay it to get her credit clear, and therefore the morgtage does it A. effect her even if we pay it? and B. can we try to pursue said Ex tosser to get money back.
I dont want to bury my head in the sand and it to bite us in 6months when we want a mortgage but i dont want to be too pro-active and pay something that i can effectively forget about.
Any advice is welcome.
P.s. I've already informed of her stupid/wreckless/plank/blonde/annoying money ways and she has since grown up a fair bit. she was 18 at the time the loan was taken out and claims she was naive but anyway, thats not the point now!
After looking into it, it would appear her Ex has defaulted on a loan she stupidly was guarantor on when they used to live together (was a rented flat). They haven't been together for 5 years but the loan is showing up as a CCJ on that address from Feb 2007.
Now i know technically a CCJ will effect us but do you guys know to which degree?
Also is there a way to look into it without basically phoning the loan people, the worry with that is that they will then have her details and chase her for the money (which they currently aren't doing). This is the first she has known about it.
If we do get shafted and need to pay it to get her credit clear, and therefore the morgtage does it A. effect her even if we pay it? and B. can we try to pursue said Ex tosser to get money back.
I dont want to bury my head in the sand and it to bite us in 6months when we want a mortgage but i dont want to be too pro-active and pay something that i can effectively forget about.
Any advice is welcome.
P.s. I've already informed of her stupid/wreckless/plank/blonde/annoying money ways and she has since grown up a fair bit. she was 18 at the time the loan was taken out and claims she was naive but anyway, thats not the point now!
The bottom line is that you Mrs is jointly liable for that debt, although her being a guarantor at 18 sounds unlikely. More likey that it was a joint loan and he used the money.
My first port of call would be to the ex and try to work out getting him to pay the debt.
With regards to getting a mortgage, the CCJ will only be on her credit report for 6 years, so you may want to wait until after this date. If you apply before this date you will have an unsatisfied CCJ on your record and your choice of lenders will be severely narrowed down, in what is already a small sector of the market.
Whatever you decide to do, until the debt is cleared, you will always have to expect a bailiff to turn up on your doorstep, as the debt is in your Mrs' name. It will be much easier for debtors to find your Mrs once your homeowners via land registry and voters roll etc.
As said, the best bet is to get in contact with the ex and get him to sort it our, even if it's only paying £10 a month etc.....
My first port of call would be to the ex and try to work out getting him to pay the debt.
With regards to getting a mortgage, the CCJ will only be on her credit report for 6 years, so you may want to wait until after this date. If you apply before this date you will have an unsatisfied CCJ on your record and your choice of lenders will be severely narrowed down, in what is already a small sector of the market.
Whatever you decide to do, until the debt is cleared, you will always have to expect a bailiff to turn up on your doorstep, as the debt is in your Mrs' name. It will be much easier for debtors to find your Mrs once your homeowners via land registry and voters roll etc.
As said, the best bet is to get in contact with the ex and get him to sort it our, even if it's only paying £10 a month etc.....
Ta,
Ex is a total nob and will actively not pay it as his 'revenge' for her breaking up with him if we contact i imagine. He is a complete nut job, tried to run her father over when she hid from him at their house post break-up. Used to hit her on occasion, cocaine dealer etc
Told her to get down citizens advice asap.
Ex is a total nob and will actively not pay it as his 'revenge' for her breaking up with him if we contact i imagine. He is a complete nut job, tried to run her father over when she hid from him at their house post break-up. Used to hit her on occasion, cocaine dealer etc
Told her to get down citizens advice asap.
"Also is there a way to look into it without basically phoning the loan people, the worry with that is that they will then have her details and chase her for the money (which they currently aren't doing). This is the first she has known about it."
This bit could potentially have some people worrying, it is often said that they can and do catch up with some people.
This bit could potentially have some people worrying, it is often said that they can and do catch up with some people.
tbh she is worried that it is already too late as she had to enter her details to be able to view credit report and ergo, the CCJ.
Has totally f
ked us really. We worked out that we have only a few grand spare to spec the new house with nice things post huge deposit and wham... this comes. 
As far as i see it, she (we, as i cant get mortgage without her) are fked if she signed the paperwork like a plank. As she doesnt have any details of the loan i dont know if she is Guarantor or joint loan.
Would it only have popped up now as matey boy has stopped paying it recently??
Has totally f
ked us really. We worked out that we have only a few grand spare to spec the new house with nice things post huge deposit and wham... this comes. As far as i see it, she (we, as i cant get mortgage without her) are f
ked if she signed the paperwork like a plank. As she doesnt have any details of the loan i dont know if she is Guarantor or joint loan. Would it only have popped up now as matey boy has stopped paying it recently??
I don't know the in's and out's, i'm not 100% on total but she says listed on the CCJ on 'net is £1900. Is that total or may that be + interest/fee's etc?
Its not a massive sum, but we are struggling enough as first timers to get the £44k needed for deposit for a house by the end of the year... £2k is very much needed currently!
Gutted is not the word, just because some scumbag cant be arsed to pay.
Its not a massive sum, but we are struggling enough as first timers to get the £44k needed for deposit for a house by the end of the year... £2k is very much needed currently!
Gutted is not the word, just because some scumbag cant be arsed to pay.
House is £244, max mortgage is 200 so we need to make up the 44 ourselves! up to 30 atm but last phase of the development will be ready end of the year so need to make up the last 15 by then or we miss out on the house all together!
Just spoke to her a bit more about it, seems the front page of her Credit report appears clear, reports Zero CCJ's. Only time the mention of CCJ comes in is when there is a small tag to do with address.
The loan apparently was a top up of one of his existing loans hence the fairly low figure.
Just spoke to her a bit more about it, seems the front page of her Credit report appears clear, reports Zero CCJ's. Only time the mention of CCJ comes in is when there is a small tag to do with address.
The loan apparently was a top up of one of his existing loans hence the fairly low figure.
IMHO, with the LTV you are looking at (circa 80%) and with solid credit ratings and 24 month histories for you both at the time of the mortgage application towards the end of the year, I would not be worried about it appearing deep within the credit file.
Would advise a request to add a note to the 3 credit reference agencies to attach to the CCJ notice, explaining circumstance, but, on the flip side, this could potentially draw more attention.
Not something I would normally advise but, how about cross the bridge when you reach it? You will be applying for a £200k mortgage, if the lender quibbles over a historic CCJ, the worst they will do is adjust the effective rate to reflect underwritten risk. In all likelihood, it will not even be questioned.
Would advise a request to add a note to the 3 credit reference agencies to attach to the CCJ notice, explaining circumstance, but, on the flip side, this could potentially draw more attention.
Not something I would normally advise but, how about cross the bridge when you reach it? You will be applying for a £200k mortgage, if the lender quibbles over a historic CCJ, the worst they will do is adjust the effective rate to reflect underwritten risk. In all likelihood, it will not even be questioned.
I trust you speak from a position of knowledge (certainly sounds that way) I'm inclined to get her to see the citizens advice to put her mind at rest even if its purely to talk it through with someone.
Greatly appreciate your input. Has gone a long way to put me a bit more at rest.
My main concern is that even if they bring it up at the time is it just a case of us paying it and having no further penalty or would we need to pay it and then still get a penalty or worst case refused / terrible rate / Make us up our deposit %. ?
Greatly appreciate your input. Has gone a long way to put me a bit more at rest.
My main concern is that even if they bring it up at the time is it just a case of us paying it and having no further penalty or would we need to pay it and then still get a penalty or worst case refused / terrible rate / Make us up our deposit %. ?
S3_Graham said:
I trust you speak from a position of knowledge (certainly sounds that way) I'm inclined to get her to see the citizens advice to put her mind at rest even if its purely to talk it through with someone.
Greatly appreciate your input. Has gone a long way to put me a bit more at rest.
My main concern is that even if they bring it up at the time is it just a case of us paying it and having no further penalty or would we need to pay it and then still get a penalty or worst case refused / terrible rate / Make us up our deposit %. ?
CAB will advise that, if she acknowledges that the debt is her liability, that a settlement or arrangement should be made, as is right. Greatly appreciate your input. Has gone a long way to put me a bit more at rest.
My main concern is that even if they bring it up at the time is it just a case of us paying it and having no further penalty or would we need to pay it and then still get a penalty or worst case refused / terrible rate / Make us up our deposit %. ?
If the CCJ comes up at time of application, the underwriting department will make a decision prior to an offer being made. This is the situation where effective rates differ from AiP to lending offer which forms part of a mortgage when combined with the mortgage deed. If the CCJ is going to have an impact, it will come up as soon as you advance an AiP to full application. As previously said, a debt, even with a judgement to allow the lender to commence recovery at anytime until settled will usually only be considered within the last 24 months to the time of application.
S3_Graham said:
House is £244, max mortgage is 200 so we need to make up the 44 ourselves! up to 30 atm but last phase of the development will be ready end of the year so need to make up the last 15 by then or we miss out on the house all together!
Just spoke to her a bit more about it, seems the front page of her Credit report appears clear, reports Zero CCJ's. Only time the mention of CCJ comes in is when there is a small tag to do with address.
The loan apparently was a top up of one of his existing loans hence the fairly low figure.
who said your max mortgage is £200k?Just spoke to her a bit more about it, seems the front page of her Credit report appears clear, reports Zero CCJ's. Only time the mention of CCJ comes in is when there is a small tag to do with address.
The loan apparently was a top up of one of his existing loans hence the fairly low figure.
fergywales said:
If the CCJ comes up at time of application, the underwriting department will make a decision prior to an offer being made. This is the situation where effective rates differ from AiP to lending offer which forms part of a mortgage when combined with the mortgage deed. If the CCJ is going to have an impact, it will come up as soon as you advance an AiP to full application. As previously said, a debt, even with a judgement to allow the lender to commence recovery at anytime until settled will usually only be considered within the last 24 months to the time of application.
I'm afraid most of that is incorrect.Mortgage lenders do not have different rates for different credit scorings. Maybe 3/4 years ago a lender would have Prime/Near Prime/Sub Prime/Adverse/Heavy Adverse products and if you didn't fit on one they would move you down to the next category. I think you are confusing personal loans with mortgages, who certainly do adjust their rates they offer you once they underwrite your application.
To say that a lender will only consider the last 24 months credit reporting is wholly misleading. Natwest declined one of my clients applications recently for a missed mobile phone payment 53 months ago. Thats how strict they are.
oh good.... well i've still told her that she needs to at least talk to CAB to see what they say.
We had a chat with a mortgage advisor appointed by Barratts (as they would only give us 5% 'gift' if we used their advisor. Wasnt a firm offer but basically he took all our details and gave us a rough idea of what they would offer. I'm led to believe its an Abbey 90% mortgage which gives us a max of 197k.
well i've still told her that she needs to at least talk to CAB to see what they say.We had a chat with a mortgage advisor appointed by Barratts (as they would only give us 5% 'gift' if we used their advisor. Wasnt a firm offer but basically he took all our details and gave us a rough idea of what they would offer. I'm led to believe its an Abbey 90% mortgage which gives us a max of 197k.
Edited by S3_Graham on Tuesday 29th March 08:33
S3_Graham said:
oh good.... well i've still told her that she needs to at least talk to CAB to see what they say.
We had a chat with a mortgage advisor appointed by Barratts (as they would only give us 5% 'gift' if we used their advisor. Wasnt a firm offer but basically he took all our details and gave us a rough idea of what they would offer. I'm led to believe its an Abbey 90% mortgage which gives us a max of 197k.
Don't just rely on his advice well i've still told her that she needs to at least talk to CAB to see what they say.We had a chat with a mortgage advisor appointed by Barratts (as they would only give us 5% 'gift' if we used their advisor. Wasnt a firm offer but basically he took all our details and gave us a rough idea of what they would offer. I'm led to believe its an Abbey 90% mortgage which gives us a max of 197k.
Edited by S3_Graham on Tuesday 29th March 08:33
Sarnie said:
S3_Graham said:
oh good.... well i've still told her that she needs to at least talk to CAB to see what they say.
We had a chat with a mortgage advisor appointed by Barratts (as they would only give us 5% 'gift' if we used their advisor. Wasnt a firm offer but basically he took all our details and gave us a rough idea of what they would offer. I'm led to believe its an Abbey 90% mortgage which gives us a max of 197k.
Don't just rely on his advice well i've still told her that she needs to at least talk to CAB to see what they say.We had a chat with a mortgage advisor appointed by Barratts (as they would only give us 5% 'gift' if we used their advisor. Wasnt a firm offer but basically he took all our details and gave us a rough idea of what they would offer. I'm led to believe its an Abbey 90% mortgage which gives us a max of 197k.
Edited by S3_Graham on Tuesday 29th March 08:33
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