will it be difficult getting a mortgage after the six years of statute barred debts ?

[Spent2much]

We are looking to downsize when our debts become statute barred and just get a small mortgage of say 30.000 . Would this be possible do you think ?

please and thank you

[cymruambyth]

Re: will it be difficult getting a mortgage after the six years of statute barred debts ?

Without wishing to be insulting, from what I have read your age may play an important part in this. How long before they become SB, as the rules may have changed again!

[Spent2much]

Re: will it be difficult getting a mortgage after the six years of statute barred debts ?

Without wishing to be insulting, from what I have read your age may play an important part in this. How long before they become SB, as the rules may have changed again!

got 3 years left from august this year , im 50 hubby is 52

[PlanB]

Re: will it be difficult getting a mortgage after the six years of statute barred debts ?

im 50 hubby is 52

The current age criteria for most lenders is 75 at the end of the mortgage term. So in theory you are still eligible for a 23 year mortgage since lenders base it on the eldest applicant.

Are you seeking to remortgage your current property to get a better deal or are you wanting to purchase a new property?

Plan B x

[PlanB]

Re: will it be difficult getting a mortgage after the six years of statute barred debts ?

when our debts become statute barred and just get a small mortgage of say 30.000 . Would this be possible do you think ?

I can't predict the mortgage market in three years time (when your debts become SB) but it's not the SB milestone that matters it'll be any Defaults showing on your CRA file. These can often fall off long before a debt becomes SB.

In my case all my debts were defaulted in 2009 so will disappear from the CRA files this year. But I went into a DMP for over a year after they defaulted so they won't become SB until 2016 since I went on paying after they were defaulted.

When did your debts default and when did you get any CCJs (they stay on your CRA file and the Trust Online register for 6 six years)? Some lenders only care about defaults within the last three years prior to the application. This means they may offer a higher interest rate on the mortgage but at least you may get a loan.

All lenders tend to ask for a statement from your current mortgage provider to show the last 12 months' payment record. You've now paid off your arrears (well done!) so that won't be a problem.

The Loan to Value is another consideration. A £30k mortgage is not a huge sum so should be seen as relatively low risk. However it depends on the value of the property being purchased. So a £30k loan on a property worth £35k is a risk, but a £300,000 loan against a property worth £1 million would be seen as a low risk. The underwriters look at whether they would recover their money in the event of repossession.

Ask me the same question again in three years time and I'll be able to give you are more definitive answer

[Spent2much]

Re: will it be difficult getting a mortgage after the six years of statute barred debts ?

I can't predict the mortgage market in three years time (when your debts become SB) but it's not the SB milestone that matters it'll be any Defaults showing on your CRA file. These can often fall off long before a debt becomes SB.

In my case all my debts were defaulted in 2009 so will disappear from the CRA files this year. But I went into a DMP for over a year after they defaulted so they won't become SB until 2016 since I went on paying after they were defaulted.

When did your debts default and when did you get any CCJs (they stay on your CRA file and the Trust Online register for 6 six years)? Some lenders only care about defaults within the last three years prior to the application. This means they may offer a higher interest rate on the mortgage but at least you may get a loan.

All lenders tend to ask for a statement from your current mortgage provider to show the last 12 months' payment record. You've now paid off your arrears (well done!) so that won't be a problem.

The Loan to Value is another consideration. A £30k mortgage is not a huge sum so should be seen as relatively low risk. However it depends on the value of the property being purchased. So a £30k loan on a property worth £35k is a risk, but a £300,000 loan against a property worth £1 million would be seen as a low risk. The underwriters look at whether they would recover their money in the event of repossession.

Ask me the same question again in three years time and I'll be able to give you are more definitive answer

thank you planB, well it won't be an expensive house probably around 70-80 grand .

I don't know when any of our debts were defaulted but they won't drop off the credit file until they become statute barred because we were paying them all through payplan the last payment was in July 2012 , i have one ccj which i am trying to save some cash to make a full and final payment it is at the moment £594.19 so i will offer them something small to begin with see what they say , then there is the charge which needs to be gone and that is £5.069 and when that went on the house we received a phone call saying that if we are ever in a position to make a full and final offer just get in touch , so again we will offer something low see what happens .
The CCJ was in 2007

[PlanB]

Re: will it be difficult getting a mortgage after the six years of statute barred debts ?

I don't know when any of our debts were defaulted but they won't drop off the credit file until they become statute barred because we were paying them all through payplan the last payment was in July 2012 , i have one ccj which i am trying to save some cash to make a full and final payment it is at the moment £594.19 so i will offer them something small to begin with see what they say , then there is the charge which needs to be gone and that is £5.069 and when that went on the house we received a phone call saying that if we are ever in a position to make a full and final offer just get in touch , so again we will offer something low see what happens .
The CCJ was in 2007

As I understand it, anything you paid towards a debt in 2012 will prevent that debt from becoming SB until 2018 regardless of the default date.

Any default you received should drop off your credit file six years from the default date regardless of what you've paid and when since that date. The whole entry is removed from the CRA file not just the default information.

Your 2007 CCJ should already have vanished from your CRA file.

Is there another CCJ and if so what year was that?

A charging order is registered at Land Registry and not on your CRA file.

[Spent2much]

Re: will it be difficult getting a mortgage after the six years of statute barred debts ?

only the one ccj and the charge on the house , so the debts and the defaults come off in 2018n, that's okay then good news really


so even thought the ccj has not been paid off and i am still paying it , it should have come off m credit file ?

and the debts that were defaulted should be off my file too even though they are not statute barred ?

[julian]

Re: will it be difficult getting a mortgage after the six years of statute barred debts ?

Unfortunately some mortgage providers ask if you have ever had a CCJ. I don't know how they can tell if you have lost it from the CRA and the Trust Online files.

[Spent2much]

Re: will it be difficult getting a mortgage after the six years of statute barred debts ?

some insurance companies do also its pathetic we only applied for bricks and mortar and the question was have you ever had a ccj or anyone in your household had one got one or been bankrupt , they do anything to make a bit more cash out of people .

we will see when the time comes but for now we have another 3 years anyway .

thanks everyone .

[PlanB]

Re: will it be difficult getting a mortgage after the six years of statute barred debts ?

we will see when the time comes but for now we have another 3 years anyway . .

How many years have you got left on your current mortgage term? Check whether it's portable.

One manoeuvre could be to port it onto the next property (in three years time) and then shop around for a better deal at leisure. Or if it's not portable (that'll be spelt out in the mortgage Ts & Cs) then see if they will grant you a new mortgage.

At least your current lender knows you 'warts and all' and can see that you keep your promises because you paid off your arrears when you hit a bump in the road.

[Spent2much]

Re: will it be difficult getting a mortgage after the six years of statute barred debts ?

When we applied for the mortgage they wanted us to get a 30 year mortgage we only wanted 25 but they insisted 30 so we took that , so there is 21 years left on it . I am not planning on having a mortgage if i can help it , but if we need to then we have no choice but we did ask them if we could downsize to make it cheaper and they refused but that was when we were still in arrears so things may be different now and in the future . x

[PlanB]

Re: will it be difficult getting a mortgage after the six years of statute barred debts ?

It should be different now that your arrears have been cleared, especially if you keep up with the contractual payments for 12 months in a row. Most lenders know that customers had problems following the Credit Crunch (which they caused in the first place).

Check out Kensington's current lending criteria which you can do on their website for intermediaries (i.e. brokers and packagers who sell their products). You'll be pleasantly surprised to see that they accept defaults over 24 months old and satisfied CCJ's over 24 months old. The fact they remain on your CRA file for six years may not be a hindrance to your application.

You can download a PDF of all their criteria here > http://www.kmc.co.uk/content/dam/kmc...3-may-2015.pdf

Plan B x

[Spent2much]

Re: will it be difficult getting a mortgage after the six years of statute barred debts ?

It should be different now that your arrears have been cleared, especially if you keep up with the contractual payments for 12 months in a row. Most lenders know that customers had problems following the Credit Crunch (which they caused in the first place).

Check out Kensington's current lending criteria which you can do on their website for intermediaries (i.e. brokers and packagers who sell their products). You'll be pleasantly surprised to see that they accept defaults over 24 months old and satisfied CCJ's over 24 months old. The fact they remain on your CRA file for six years may not be a hindrance to your application.

You can download a PDF of all their criteria here > http://www.kmc.co.uk/content/dam/kmc...3-may-2015.pdf

Plan B x

Good news really thank you Plan B for taking the time to look into this for me. The ccj should be off the credit file by now it went on there in 2007 . x