Help, not sure what to do now

A question about : Help, not sure what to do now

Hi, 1st time poster

I have a fairly bad debt problem which i have made considerably better in the past year or so but dont know where to go next.

Because of a past relationship I was left with debt which is only linked to my name. I had 1 CCJ (Ј2745) with 6 other defaulted accounts which totalled Ј13000. I now only have Ј8000 oweing with Ј2300 left on the CCJ with 3 defaults. (1 of which is linked of the CCJ). I make minimal payments on all of these each month and have the interest frozen.

I am a home owner with minimal equity but do not owe anything to the mortgage company.

I want to clear my CCJ and am aware it lasts 6 years on my file but does it look better if it is paid off as i am looking to get a new mortgage soon. I have had a pre mortgage acceptance but they want 35% deposit because of the risk.

Does anyone have any suggestions please. Do companies give loans to people of my situation so i can spread my debt payment to pay off ccj. my credit rating is improving and is currently 299 on equifax (poor).

Help please

Best answers:

• I am not an expert on any of these things but I thought that you would have to pay off the CCJ before you can get another mortgage?
• I doubt you will be able to get a new mortgage with a CCJ on your file, if you do, the rates will be astronomical.
  Also its never a good idea to take on further credit to pay off a debt, my advise, do a statement of affairs, listing all your income, and outgoings, and see where you can make any savings, with a CCJ your credit will be effected for 6 years so the mortgage may be a distant dream just yet.
• Are you looking to get a new mortgage on your existing property? or are you looking to move house?
  You say you don't owe anything to the mortgage company - do you mean you don't have a mortgage at all or just mean you are not in arrears on your existing mortgage?
• No arrears on mortgage. Addititionally I have made all payments on time for other things for past 3 years or so. How much does a satisfied ccj have on the credit file before the 6 years is up. Like I say the halifax have accepted a mortgage but want a massive deposit .
• CCJs and defaults have a big impact on your ability to get accepted for credit or mortgages. Worse when unpaid but even if paid off you will still be considered high risk.
  Which will mean they will offer a smaller ltv and charge higher rates.
  If you are moving to a new property have you asked your existing mortgage lender if you can port your existing mortgage?
• i can port across Ј100000 at 2.64%. the rest at normal rate. just want the 35% as security. i assume this goes down when my credit report improves
• Hello there,
  If you clear the CCJ you'll be able to request a certificate of satisfaction. I'm not sure that clearing the judgment in full would make a great deal of difference as far as your credit score is concerned although have a lower level of indebtedness should have *some* impact. As you may already know, there has been significant tightening up of the mortgage industry and lending criteria, as such having a less than perfect credit history can have a major impact on your ability to get a good mortgage deal.
  Do consider seeking advice from a good financial adviser as they'll be able to talk you through your best options.
  We have a useful fact sheet on credit referencing which you can find here.
  Vesy best wishes,
  David @ National Debtline.