Outstanding CCJ

Posted on 14 June 2012 by Ian


I have an unsatisfied ccj which will be 4 years old in august. I was planning on paying it off but I was wondering what sort of deposit I would need for a mortgage. My "creditscore" is listed as 903 despite the ccj.

Ian

The minimum deposit you need will be 5%, but only if you are buying under one of the Government's Home Buying Schemes such as NewBuy:

http://www.direct.gov.uk/en/HomeAndCommunity/BuyingAndSellingYourHome/HomeBuyingSchemes/DG_201310

For a normal purchase you would normally need at least 10% and with an outstanding CCJ I think you will need 25% or more.  Lending criteria has tightened up considerably and Banks such as Santander will not accept a mortgage application from anyone who has a default or CCJ showing on their credit record despite the overall score.

The CCJ will fall off the back of your credit file 6 years after registration, so you may want to consider waiting for that to happen and saving as much deposit as you can in the mean time?  At the moment the outlook for interest rates and property prices is to remain stable whilst the Eurozone sorts itself out.  This could give you the time you need to put yourself in a better position to obtain a mortgage at rates not much different to today.  Of course no one knows what will happen in the future and there is no guarantee that both interest rates and house prices won't go up leaving you in a worse position than now.

I believe we can help you and that you would benefit from speaking to one of our independent mortgage advisers.  Please call 0344 346 3672 and tell the consultant the date and title of your question, they will then be able to guide you towards the right solution.

Peter

Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

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