How does a CCJ affect getting a mortgage?

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How does a CCJ affect getting a mortgage?

How does a CCJ affect getting a mortgage?

Lewis Shaw explains how the mortgage process works if you have a County Court Judgement (CCJ).ntly asked questions.

Can I still get a mortgage if I have a CCJ?

Yes, you can still get a mortgage if you have a CCJ. It will depend on when that CCJ was issued, its value, and whether it’s been satisfied. That’s technical jargon, which just means you have repaid it.

The age of that CCJ will have varying impacts. If it’s within the last 12 months, fewer lenders are available, and you might need a bigger deposit. Generally, you have more options if it’s between one to three years old. You still may need a slightly larger deposit, but that might start to come down.

If you’re looking to get a mortgage and you have a CCJ that is three to six years old, generally, there are many more lenders available. Hopefully, those interest rates may not be quite as high as you’d think. Then, after six years, County Court Judgements drop off your credit profile. And if you had a CCJ 10 years ago, that shouldn’t be an issue anymore.

Ideally, you should repay your CCJ because once you satisfy that CCJ, your credit score will start to improve. But you can still get a mortgage with a County Court Judgement.

What mortgage lenders accept CCJs? Are there many?

Quite a few mortgage lenders will accept County Court Judgements. It may not be a high-street lender, but plenty will consider your application. As I mentioned, it will depend on the value of the CCJ, when it was issued, and whether it’s been repaid.

Which lenders are right for you will depend entirely on how much deposit you have, when the CCJ was issued and how much it was for, and whether you talk to a broker who can match you to the right lender the first time.

Can I get a mortgage with a satisfied CCJ?

Yes, you can get a mortgage with a satisfied CCJ. What matters here is when it was settled and what the value of the CCJ was. Lenders have different criteria and lending policies – the rules by which they operate.

Some lenders, for example, will accept a paid-off CCJ below £500. Other lenders may accept one below £1,000 – but others have a £250 limit. Satisfying that CCJ will make your life easier regarding getting a mortgage.

Does the date of my CCJ matter for a mortgage?

Yes, the date of your CCJ does matter. The longer ago it is, the better that is for you and the higher the likelihood of you getting approved for a mortgage. If you were issued a CCJ yesterday, that’s a real difficulty for any lender to get over.

But if it was 10 years ago, it doesn’t matter. It’s always recommended to speak to a broker like us—we’ll be able to look at your credit profile, see when that CCJ was issued and then explain how much deposit you’ll need.

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Does the size of the CCJ affect my mortgage application?

The size of a CCJ can affect a mortgage application—the smaller the amount, the less impact; the higher the amount, the bigger the impact. A CCJ under £500 won’t have too much effect. £500 to £1000 will have a moderate impact and generally over £1,000 will be quite big.

You might have multiple CCJs. That can be tricky, but again, the value, when they were registered and satisfied, will all make a difference. That will affect which mortgage lender might approve you and how much deposit they may want you to have. It’s a broad spectrum, and we need to know all the details of the CCJ so we can recommend the right mortgage lender.

If you have a CCJ, it’s better to be upfront and honest with your broker. Tell them on day one. Then, we can take all that into account and make sure that we’re looking at the right lenders, giving everyone the correct information, and getting it right the first time.

Can mortgage lenders see CCJs after six years?

Mortgage lenders can’t see a CCJ after six years. A CCJ stays on your credit profile for up to six years and then falls off. It shouldn’t be a barrier to a mortgage once it’s no longer there. It may have impacted your credit score, though, and that may not have fully recovered.

Although mortgage lenders can’t see a CCJ after six years, it’s still worthwhile explaining to your mortgage broker. If we can’t see it and that CCJ was with a particular financial institution, it may have dropped off your credit profile. However, they may still probably have a record of it.

We don’t want to apply for a mortgage with a provider you had a CCJ with, even if the CCJ is no longer on your credit profile. However, it’s still important to discuss it to make sure we’re approaching the right lenders for you.

How do I find out if I have a CCJ?

Generally, it will be on your credit profile so you can check your credit report. The UK has three main credit reference agencies – Experian, Equifax and TransUnion. Your credit report will tell you if you’ve got a CCJ. It may be that the court has sent you information because, generally, it will be related to an address you’ve lived at and will usually be linked to a credit application you made when you lived there.

Your credit profile will give you a reference number and the name of the court that issued the county court judgement. If you’re struggling to determine what it was for, you could consult your credit report for information.

You’ve demonstrated how a mortgage broker can help – is there anything else you’d like to add?

When it comes to getting a mortgage after you’ve had a CCJ, there are a few things that a mortgage broker can do. Of course, we have access to lenders that are happy to accept people who have had CCJs in the past, whether they’re paid off or still active.

A key thing here is understanding the approval criteria for those particular lenders. There’s no point applying to a lender that will say no when we could have just approached one we know will say yes. As professional mortgage brokers, we understand those lending policies and all the lending criteria, which are generally hidden from many people. That’s especially true with bad credit lenders that will approve mortgages with CCJ.

It’s about picking the right lender to hopefully get you the right, affordable mortgage. As mortgage brokers, we can also help prepare your application correctly so that when it’s submitted, you’ve got the best chance of being approved.

With a mortgage broker, you have a far better chance of being approved. We can help with many things when you’ve had a CCJ, but it’s always about being upfront and honest so we know what we are dealing with, can take the appropriate action, and give you the right advice.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.