7 Points About Getting A Mortgage With A CCJ

Getting a Mortgage with a CCJ.

Due to bad credit, many of you will have been out-right refused a mortgage, in the past. Today, mortgage brokers use new criteria to assess each individual and their current circumstances. This means that, despite a previous bad credit score or CCJs attached to your name, you could still secure a mortgage deal.

Here are 7 points about getting a mortgage with a CCJ:

#1 What is a CCJ?

CCJs can be very detrimental to your name, especially when it comes to opening bank accounts or applying for credit cards and mortgages. It stands for County Court Judgement (CCJ) . A court order registered against you for failing to make agreed payments, either as an individual or company.

#2 Getting a mortgage with a CCJ

So, can I get a mortgage with a CCJ? Yes, it is possible to still secure a mortgage, even if you have a CCJ on your credit file. However, it does depend on a number of factors, of course.

  1. One of the key factors is how recent the CCJ was registred. Usually, the older it is, the more chance you have of success.
  2. If the CCJ has been marked as ‘satisfied’, you will stand an even better chance. This means that you have settled the outstanding charges and the CCJ has been resolved. Some lenders prefer 12 months to have passed on a settlement, but others may be more lenient.
  3. The financial amount of the CCJ can be a major factor. If it’s considered to be too high or too much, it can affect the loan-to-value (LTV) ratio, therefore lenders are less likely to take the risk.
  4. If you have more than one CCJ, this can cause more issues. A history of late or missed payments will limit your mortgage options.
  5. The size of expected deposit may vary due to the type of CCJ you have or the age of it. Again, the older the CCJ, the more familiar your deposit percentage should be.

#3 How do I know if I have a CCJ?

If you’ve been experiencing credit issues, it might be because you have a CCJ against your name. If you’re unaware of such a case, it may be that you’ve moved address and missed the notice, for example. To be certain, you can check the Register of Judgements, Orders and Fines and perform a CCJ check against your name for £4.

#4 Interesting Facts about a CCJ

People think if they receive a court summons they have a CCJ, this is wrong you have the chance to fight a court summons and fully defend your self as you might not have done anything wrong, the summons gives you the chance to defend yourself before the matter goes to court, we would recommend at this point offering mediation which is a cheaper method than going to court. If you lose the court case it is at this point you will receive a CCJ.

You have 30 days from this point to pay the CCJ before it is marked as a CCJ on your credit profile. Once this has been marked on your credit profile it is harder to obtain a mortgage but not impossible, CCJ Mortgages are obtainable and we recommend you speak to us at Mortgagekey to see if we can help you.

#5 What is my credit rating?

Your credit rating is a score made up of multiple components. For instance, if you’ve missed payments and not being registered on the electoral roll can both play a big factor. The higher your credit score, the more attractive you become to potential lenders, as you’re less of a risk and more reliable. The lower your credit rating, the more likely you are to be refused credit.

#6 How can I calculate my credit rating?

There are many websites out there, free to use, as a way of getting a rough estimate of your credit rating. A popular one is Experian. This will help you determine the types of mortgages you can apply for and it’s definitely recommended before any application process begin.

#7 Can I repair my credit score?

There are steps you can take towards improving your credit score. A lot of it is becoming more better at managing your finances through discipline and consistency. By catching up on payments, paying your bills on time and avoiding any more loans or credit cards, should see your score improve over time.

Bad Credit Mortgages with MortgageKey

As an independent mortgage broker, we offer free and impartial advice. What’s more is that we understand the bad credit mortgage process and can relieve you of the stresses and complexities involved. We have the people in place to do the hard work for you. Assessing each circumstance individually, will improve the chances of securing a mortgage, rather than instant rejection for previous misdemeanours.

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THINK CAREFULLY BEFORE SECURING DEBTS AGAINST YOUR PROPERTY.

YOUR HOME MAYBE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR REPAYMENTS.

Representative APRC 3.5% Variable

Representative Example: Annual Interest rate of 2.44% fixed for 2 Years followed by 3.59% for the remaining term. Representative 3.50% APRC Variable. Based on borrowing of 150,000 over 17 years repayments of £899 per month. Total amount repayable £198,466. Includes Lender Fee of £995 and Broker Fee of £695.

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