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Mortgage With CCJs
Thinking About Getting a Mortgage With CCJs? We Are Here to Help
Mortgage With CCJs and Bad Credit
Finding the right mortgage can be a worry at the best of times, but if you’re in need of a mortgage with CCJ and bad credit, it can feel near impossible. The good news is that getting a mortgage with a CCJ is possible, you just need to know where to look.
Thankfully, our team of specialist mortgage brokers are experienced in advising people with CCJs and can help gain you access to some of the most competitive deals on the market.
So What Is a CCJ?
A CCJ (County Court Judgment) is a court order which can be registered against you if you fail to make an agreed repayment.
However it is important to remember that you cannot get a CCJ without receiving several pieces of correspondence first. This can include bills, reminder letters or written warnings that if you do not make your repayment, legal action will be taken.
Even if after receiving these warnings you still do not make your repayment, you will be sent a County Court claim form. By responding to this promptly, you can take the opportunity to dispute the debt or provide evidence for why your repayment is late or you are unable to pay.
By not responding, you may be ordered to immediately pay the amount in full. You will be informed of this in a judgement sent by the court, outlining how much you owe, how they request that you make the payment (in full or by instalments), the deadline you must pay by and who is required to pay.
Fortunately, at this point if you are able to pay the debt in full – including any interest accrued and court fees – you can still avoid having a CCJ registered against you. If you are still unable to pay, then this will be recorded on the Register of Judgements, Orders and Fines, and will be marked against you on your credit file.
Here’s what our client’s have to say!
How Long Will a CCJ Remain On My Record?
Many people assume that once they receive a CCJ it will stay on their credit record permanently, which is simply not the case! Once a CCJ is recorded on your credit record, it will remain there for six years only.
As we previously mentioned, if you are able to pay your debt in full within one month of receiving the court judgement, no record of a CCJ will be marked on your credit file. Alternatively, if you still only manage to clear your debt more than one month after receiving the court judgement then this will change your CCJ record to ‘satisfied’, letting lenders know that you have paid the debt.
Remember, all bad credit will be removed from your credit file eventually. But until then you can still find a mortgage that is right for you. With guidance from our expert team of mortgage brokers, securing a mortgage might be easier than you think.
How Do I Know If I Have CCJs?
So how do you even know if you have CCJs on your credit file?
If you’re unsure of where you stand when it comes to CCJs, you can do one of several things. You can access the Register of Judgements, Orders and Fines for a one-off fee of £4.00 and check against your name. Or, you can ask to access your credit report. This can be done for free, from a wide range of trusted online providers.
Need help obtaining copies of your credit report? Contact us today.
Can I Still Get a Mortgage With CCJs?
Want to know if it’s still possible to get a mortgage with CCJs and defaults? The good news is that yes, it is!
When considering your application, lenders will want to look at the following:
Date of CCJ
When a CCJ was registered is probably the most important deciding factor for lenders when making their decision. The older the CCJ, the better. If they were registered over three years ago, then this will be looked on more favourably than a CCJ that was registered in the last twelve months.
Number of CCJs
If you have had more than one CCJ registered recently, then this may limit your options more than if you’ve had several CCJs registered over three years ago. Generally, if you are looking to obtain a mortgage with a high loan-to-value (LTV), then most lenders will not want to see more than two CCJs registered against you in the last two years. However, if you’re able to put down a larger deposit then some lenders may be more flexible.
Size of CCJ
For more recently registered CCJs, most specialist lenders will put a limit on the size of CCJ they will accept. A CCJ registered within the past two years would be limited by most lenders to approximately £2,500 if borrowing up to 85% loan-to-value. For CCJs registered within the past twelve months then the maximum most lenders will accept is £1,000. However, for CCJs over two or three years old the value becomes irrelevant.
The larger the deposit you are able to put down, the better! For a 5% deposit, any CCJs you have would need to be at least three years old. However, if you’re able to put down 25% or more, then any CCJs registered within the last twelve months may still be considered.
Satisfied or Unsatisfied
Different lenders have differing stances on whether or not you have satisfied your CCJs or not. Some lenders will only approve applications for a mortgage with CCJ satisfied, or may make it a requirement that you pay off your CCJs within a set period of time in order to have your application approved. On the other hand, some specialist lenders will approve an application with unsatisfied CCJs if they were registered over two years go.
When it comes to CCJ mortgages, the type of mortgage you are seeking can affect which lenders you’ll be eligible for. If you’re looking for a standard purchase or to remortgage with CCJs, then lenders may be able to offer a bit more flexibility. Alternatively, if you’re a first time buyer or thinking of purchasing a buy to let property, then lenders’ criteria may be stricter. For example, they may accept older CCJs only or require a significantly larger deposit.
All borrowers, regardless of whether they have CCJs on their credit record or not, are subject to an affordability assessment that lenders will use to determine whether or not they believe you can make your repayments on time.
For those with CCJs – especially if they are recent – your application may be accepted, although you might not be able to borrow as much money.
Don’t forget that there are still many factors that can work in your favour. For example, your income(s), the size of the deposit you are able to put down and if your CCJs are satisfied or over three years old. All of these are considerations our specialist mortgage brokers will be happy to navigate with you, for the best possible outcome.
Looking For Mortgage Lenders with CCJs?
Here at Amber Mortgage Solutions our expert team of mortgage brokers will endeavour to help you secure an affordable mortgage, regardless of your poor credit history.
Our experience in working with borrowers looking for bad credit mortgages and mortgages with CCJs, mean that in circumstances where a high street lender cannot assist you, we are confident that we can still match you with a specialist lender offering competitive deals.
So for expert mortgage advice, why not speak with a member of our team today?