Obtaining a mortgage with a decree | Scottish equivalent of CCJs
Too much gumpth can confuse when trying to get a mortgage with a decree registered against your credit file. I have therefore put together a simple Decree Mortgage Guide in an attempt to strip back the qualification rules to the bone.
In truth the Scottish decree mortgage market is poorly served when compared to the English counterpart of CCJs so hopefully this Decree Mortgage Guide will be a wake-up call to Mortgage Lenders as well as being helpful to you as the Consumer.
All the information provided is subject to full underwriting and I would strongly recommend enlisting the services of a Mortgage Professional, such as Niche Advice, to make sure your case is presented to give you the best possible chance of success, and good luck.
At a Glance Guide to Mortgages with Decrees
Stripping this back as promised, to make it easier to digest:
- If you have a Decree(s) registered in the last 3 months you will need to wait, and
- Decrees registered over 2 years ago are normally placeable by Niche Advice, and
- Also very small Decrees may be ignored from the assessment.
Therefore the following list concentrates on the Decrees that fall between these posts. The mortgages featured are for residential purposes:
10% deposit
1 decree (none registered in last 18 months)
15% deposit
£1,000 total (none registered in last 3 months) OR 3 to £5,000 total (none registered in last 9 months)
20% deposit
3 (none registered in last 3 months)
25% deposit
4 to £5,000 total (none registered in last 6 months)
The rates will differ, with a generalisation that the more severe the credit issue the greater the interest rate.
To remind you this is only a snap shot that has been simplified, often Decrees registered over 2 years ago will be completely ignored, so make sure you talk through your personal circumstances with your Mortgage Advisor.
Niche Advice offers suitable advice to applicants purchasing or remortgaging in Scotland that have decrees registered against their credit files. To see if we can help you complete the Contact Form on this website or call T: 020 7993 2044.
Author: Payam Azadi
Payam Azadi is a partner at Niche Advice who are whole of the market Independent Mortgage Brokers. His role is very much focused on Property financing both on residential and commercial lines. To get in contact with him please click here.
