Can I Get A Mortgage with CCJs?
If you have a county court judgement (CCJ) it can make it more difficult to obtain a mortgage. CCJ’s can also affect other types of credit, including loans and credit cards. All is not lost though, there are still ways to get a mortgage, even if you have a CCJ.
At Finance Surgery, our team will work with you to help you get a mortgage and with our experience dealing with customers in the same situation, we understand what it takes to make you more attractive to mortgage lenders.
What is a county court judgement?
Some people have county court judgements but still don’t really know what it means. Creditors often apply for CCJ’s as a last resort, if they feel you won’t repay the debt.
The court would then make the decision and if they feel your creditor is right, they will issue the CCJ and you will get this through the post. You have some choices about the CCJ. You can pay it back, request to pay it in instalments or if you think the claim is wrong, you can dispute it.
You can also claim against the creditor, if you don’t feel it is legitimate and they have broken their contract with you. It is important not to ignore your CCJ, otherwise you might end up having to pay in other ways, such as repossession.
If you pay off your CCJ immediately, it will usually not be present on your credit file. If in doubt, you can check your credit report with Experian or like see if the CCJ is present.
As CCJ’s are sent to your home address, it can be easy to miss them, if you have moved home. If you are unsure whether you have a CCJ, you should check your credit report or undertake a county court judgements search.
If you are struggling to get accepted for any credit, you may either have defaults on your file or CCJ’s. It is important that you know whether you have a CCJ or not, as this can give you a better understanding of which type of mortgage to apply for.
If you get a CCJ, it is important to try and pay it off straight away or alternatively, set up an arrangement to pay it back. If you don’t pay it off, the CCJ will remain on your file for six years, at which time it will be removed, regardless of whether you have paid it off or not. The CCJ is visible to the public, so anyone can view it.
Satisfied CCJ
If the CCJ is satisfied, it means you have paid off the CCJ. If you want to know how to remove a county court judgement, you can apply to get your CCJ listed as satisfied and this will be updated on your credit records. You are likely to have much more choice of mortgages, if you have a satisfied CCJ, rather than an unsatisfied. It you can manage to get your CCJ to a satisfied status, this is advisable to do before you make your mortgage application.
You may either be unable to satisfy the CCJ or you may have a dispute about it, at which case the CCJ will be unsatisfied. This is obviously less favourable than a satisfied CCJ, but it is still possible to get a mortgage. There are options available, regardless of whether you have a satisfied or unsatisfied CCJ. You just need to know which mortgage lender to approach and this is where we can help at Finance Surgery.
If you have a county court judgement and you want to take out a mortgage, you may be understandably concerned about whether you will ever be able to get one. The good news is that it is possible to get a mortgage with a CCJ, although there are some considerations the mortgage lender will consider when deciding.
If the CCJ is historical, you will naturally have a much higher chance of success.
The more recent the CCJ is, the more challenging it will be. CCJ’s can be under two categories; satisfied and unsatisfied. If the CCJ is satisfied, this means it has been settled and resolved. If unsatisfied, it is still outstanding. Naturally, the mortgage lender will look more favourably on a settled CCJ, which will give you a greater chance of being accepted.
The value of the CCJ is another factor which will usually be taken into consideration. If it is too high, the loan-to-value (LTV) ratio will be affected which will make it more difficult to obtain a mortgage. It is possible to have more than one CCJ, but more than one could have a negative effect on your ability to obtain a mortgage. If you have missed payments, this is another factor which the mortgage lender might consider. The size of the deposit will depend on the length of time you have had the CCJ. If it is new, the mortgage lender may require a bigger deposit.
There are mortgages specifically designed for those with adverse credit, even CCJ’s. You can expect the process to be a bit more complex, than if you had a good credit rating and you may need to put down a bigger deposit.
If you are applying for a standard mortgage or a remortgage, it may be easier to get accepted than if it is a first-time mortgage or a buy to let. It Is important to choose mortgage lenders who are either specific for those with poor credit or who are more lenient with applications.
At Finance Surgery, we have extensive knowledge on the variety of lenders out there and will be able to provide you with options to suit your circumstances. We know the different types of mortgages available for those with CCJ’s and our team will be able to discuss these with you, so that you make the right decision based on your needs. We have worked with hundreds of customers with adverse credit and we can help you too. We will look at the mortgage rates based on your current situation.
Our advisors look at each case separately and typically look at the date the CCJ was registered, the value of the CCJ, type of mortgage you need, the status of it and the size of your deposit. When these are assessed, the advisor will be able to put you in touch with the most relevant mortgage advisor to suit your needs.
The size of the deposit for a CCJ will vary, however, if you can put down a good deposit, you will increase your chances of getting accepted for a mortgage. The older the CCJ is the lower the deposit is likely to be. If your CCJ is less than 3 years old, you may struggle to get a mortgage, or you will need to put down a substantial deposit.
At Finance Surgery, we are here to support your application, even if you have adverse credit, like a CCJ. We have an experienced team who have been working with customers in the same situation as you may be in and we try to ensure your advice is tailored to suit your own needs.
We understand what mortgage lenders are looking for and we try to do everything we can to support you. We know that every situation is different, and we won’t treat you like another number, we will treat you as an individual with your own specific needs. If you need expert advice, you have arrived at the right place.
Don’t worry if you don’t have a clue about mortgages and county court judgements, we have worked with customers in your position and we try to make sure you get the right option based on your own needs. If you think you might need some advice on getting a mortgage with your CCJ, we are here to help. Let us know what you are looking for and we will be there to give you advice.