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Mortgages with a CCJ - What You Need to Know

You may find it more difficult obtaining a mortgage if you have a CCJ. It is important to know as much information as you can before finding a mortgage.

What is a County Court Judgement (CCJ)?

A County Court Judgement (CCJ) is issued if you fail to pay money that you owe. This is after you have been contacted through all reasonable avenues such as phone calls, letters, late payment notices, to no avail. If you do not pay off a CCJ, it will remain on your credit report for six years, even after it is settled.

It is important to try and pay off your CCJ within 30 days as sometimes this will stop the CCJ from appearing on your credit file at all.

If you have a settled CCJ it is much easier to find a lender who will be willing to offer you a mortgage. If you paid it back late or it is still outstanding, then prepare yourself to find it more difficult to be accepted by a lender.

Can I Still Get A Mortgage if I Have a CCJ?

It may feel like it is impossible to get a mortgage if you have a CCJ, but it is actually easier now than it has been in the past. High street lenders typically will not accept your mortgage application but there are other lenders out there.

You must make sure that you can afford to make the repayments on your mortgage, if you do not keep up with payments your home may be repossessed. It is important to make sure you have the finances before you apply for a mortgage.

There are a lot more lenders to choose from as more are joining the adverse credit or ‘bad credit’ mortgage market. As always with lenders their criteria will vary and there will be lenders to cater towards your specific financial situation. It is important to seek the advice of a specialist mortgage broker to help find the right mortgage option for you.

What Will Lenders Look at if I Have a CCJ?

Lenders will look into your credit history without a doubt, but this occurs with every mortgage. If you have a CCJ there are a few things they commonly make assessments on:

  • The amount of your CCJ
  • Date of when the CCJ was registered
  • Whether or not you CCJ is settled
  • The number of CCJs you have on your credit file
  • The size of your deposit
  • The type of mortgage you need (residential buy or let)
  • Other bad credit history on your file

Does the Date of my CCJ Matter for a Mortgage?

The date does matter, if your CCJ was six years ago then it will not appear on your file. It is easier to get a mortgage too if your CCJ was more than three years old compared to only one year. One lender may look into when the CCJ was issued whereas another may focus on if it has been settled or not.

Can I Get a County Court Judgement Removed From my Credit File?

If you pay the CCJ within the 30 days, then you can apply to have it removed from your credit file and the public register. If it is after the 30-day period then you cannot remove it from the register, thus it will appear on your credit history for six years.

Can I Rebuild my Credit Score After a CCJ?

If you ensure that you have paid your CCJ and pay your other debts too then you will see your score go up. If you think you cannot afford repayments it is important to speak to lenders and discuss any options, you have.

Close any unused credit cards and accounts and make sure your report is all up to date. It is important to check past details too to make sure these are correct and not affecting your credit file. Avoid payday loans as much as possible as well as your overdraft as they can be unattractive to lenders when securing a mortgage.

Does the Size of my CCJ Matter?

This is very dependent upon which lender you choose and their criteria. If your CCJ is within the past twelve months, then lenders tend to look at how much you owe and will limit the amount you can borrow.

The older the CCJ the less the amount you owe will matter. If you can make regular repayments and show the lender you are managing your finances, then it will boost your chances of getting a mortgage.

How Could A Mortgage Broker Help?

At Bespoke Mortgage And Finance Centre Ltd we have knowledge of the mortgage market and can find the right lender for you. They have built relationships with lenders and can advise you on the mortgage and lender that will fit your needs.

There are many specialist lenders out there for people with CCJs and bad credit, but they can be hard to find. A mortgage broker can take the stress out of the search and also do all of the paperwork for you. They can advise you on ways to maximise your chances of being accepted onto a mortgage and getting the property you want.

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

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