Mortgage after a CCJ

Finding a mortgage with a CCJ can be difficult, but here at Clever Mortgages we specialise in helping people in difficult situations, working with specialist lenders that could accept your application, even with bad credit and a CCJ.

Speak to us today about your situation and we can advise on the right path for you.

Mortgage with CCJs

Getting a mortgage with CCJs can be tough. Mainstream lenders may not consider your application if you have a CCJ on your credit file, however there are still options available to you.

Finding a mortgage can be especially difficult if you have an adverse credit score. A CCJ, IVA or defaults (any missing payments) on your credit file can put some lenders off.

Although high street lenders are unlikely to consider you for a mortgage with any CCJ’s (County Court Judgements) there are still bad credit mortgage brokers such as Clever Mortgages who will consider your mortgage application.

How we can help

Getting a mortgage with a CCJ:

Having a CCJ can be stressful and many people believe that this will totally prevent them from accessing credit, like a mortgage- but that isn’t always the case. Highstreet lenders rarely look favourably on credit issues like a CCJ, but there are plenty of specialist lenders who take your current financial situation into account, taking a more open approach and considering all factors. Our brokers have access to these lenders, meaning they could help you find a mortgage even after a CCJ.

Factors to consider:

Specialist lenders will look more towards your circumstances and consider:

Is the CCJ satisfied? Getting a mortgage with a satisfied CCJ will be far easier, but this doesn’t define your chances. If you’re still in a CCJ lenders will look at:

  • How long ago was it
    Specialist lenders will prioritise how recent the CCJ was when considering you for a mortgage. Many require that any CCJ was settled within the last 12 months. However, the more time since the CCJ was registered, the higher your chances are of getting a mortgage.
  • The amount of the CCJ
    The size of the CCJ is typically less important to the lender than the date of registration; however, it is still taken into consideration. If the CCJ is over 3 years old then any value is usually considered. However, if the CCJ is within 2 years old then it is typically limited to around £2,500 and if it’s within the last year a maximum of £1,000.
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I cannot recommend this company enough
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I cannot recommend this company enough, before finding them we had been through several lazy and unperturbed brokers who just wanted the easy cases for easy commission. Our situation was slightly trickier with myself being on a spousal visa and my partner also having a CCJ. However upon first contact with the wonderful administration team of clever mortgage they provided me assurances that a mortgage can be arranged no matter how dire we might feel our situation was, true to their words subsequent conversations with Christie Buck the mortgage broker was indeed comforting and enlightening. She first assured us, this is not a difficult situation as it has been portrayed by other brokers and there will definitely be a product out there for us. In less than 24hours of speaking to her and filling the application online form, she came back with an AIP with a High Street bank to our shock and surprise. Fast forward with all the necessary guidance and support we have a mortgage offer and in the process of completing the purchase of our dream home. Thank you Christie Buck and the entire administration team.

Advice

How to increase chances of getting a mortgage with a CCJ?

There are steps you can take to help increase your chances of getting a mortgage with, or after a CCJ.

Keep up repayments:

Make sure you keep up all credit and CCJ repayments. Missing payments can impact your credit score further and could risk your creditor taking further action. Keeping up your repayments can help show potential lenders that you can be a responsible borrower and over time will help repair your credit score.

Avoid multiple credit applications:

If you’re looking for a mortgage with a CCJ, you might struggle to find a mainstream lender that will accept your application and making several failed applications in a short space of time can impact your credit report.

Going through a specialist bad credit broker like Clever Mortgages can help you find lenders that are likely to accept your application, sometimes accessing better rates and deals through the specialist lenders we work with.

Close old accounts:

If you’ve got any old credit accounts that you’re not using, make sure you close them. Having many open accounts can negatively impact your credit score, so closing unused ones can help boost your score.

Employment:

Like with all credit agreements repayment ability is a big factor. Having stable employment, or consistent employment in the same field helps boost your application and make you a more attractive borrower.

Keep track of your credit report:

Whilst Clever Mortgages can run a credit report for you, there are three main credit reference agencies in the UK, Experian, Equifax and TransUnion. You can view your credit report online using these agencies. Your credit report shows you what lenders can see when they’re considering you for credit, and keeping track of your report can help you better understand your credit and what influences it.

Save up a large deposit:

Whilst it might be difficult at the time of experiencing a CCJ.  As with most bad credit circumstances, a large deposit vastly increases your chances of getting your mortgage application approved. With a large deposit, it means the amount you need to borrow is less, resulting in a lower LTV ratio. A lower LTV makes you a better prospect and less risky for a lender, meaning you’re more likely to get a better interest rate.

Your deposit

As with most bad credit circumstances, you typically need a large deposit to get your application approved. With a large deposit, it means the amount you need to borrow is less, resulting in a lower LTV ratio. Therefore a lower LTV makes you a better prospect for a lender and more likely to get a better interest rate.

Helpful information

What is a CCJ?

A County Court Judgement (CCJ) is a court order that creditors can apply for against you if you don’t repay money owed. If the courts issue the CCJ, this means they agree with your creditor and will order you to pay the money back. You’ll usually have fair warning of this happening through a court summons and a CCJ will usually follow late payment notices and a default letter.

If you pay the full amount owed within one month of the CCJ being issued, it shouldn’t be recorded however if you fail to do this and your CCJ is recorded, it’ll stay on the register for 6 years.

How will a CCJ affect my credit score?

Unless paid within 30 days, a recorded CCJ will stay on your credit report for 6 years and can negatively impact your credit score. You’ll also need to take into account the late payment notices and default that would have occurred leading up to your CCJ which will appear on your credit report.

Late payments: a late payment recorded on your credit report will stay there for 6 years, however the impact it has on your score reduces with time.

Defaults: a default will also last 6 years from the date of default.

What happens if I miss payments on my CCJ?

If you miss payments on your CCJ, further action can be taken against you. This could include:

  • Using bailiffs to take control of your belongings
  • Obtaining an ‘attachment of earnings order’, where the creditor takes deductions from your wages before you receive them
  • If your debt is a secured loan, the creditor could seek to repossess your property

It’s important to meet all repayments on a CCJ. If you can’t afford to pay it in full, you can usually agree on a monthly instalment plan with your creditor.

Interest rates

Due to the CCJ on your credit file, however, it’s likely you’ll only have access to higher interest rates than you would with a good credit history. This is because your interest rate is determined in line with the level of risk a lender perceives with your application. Therefore the greater the risk, the higher the interest rate.

Getting a mortgage with a CCJ

Specialist lenders will probably take a less definitive view of a CCJ and consider:

Is the CCJ satisfied?

Getting a mortgage with a satisfied CCJ is far easier than an unsatisfied CCJ, but neither is impossible. Getting approval will depend on the individual lender’s criteria.

How long ago the CCJ was

Specialist lenders will prioritise how recent the CCJ was when considering you for a mortgage. Many require that any CCJ was settled within the last 12 months. However, the more time since the CCJ was registered, the higher your chances are of getting a mortgage.

The amount of the CCJ

The size of the CCJ is typically less important to the lender than the date of registration; however, it is still taken into consideration. If the CCJ is over 3 years old then any value is usually considered. However, if the CCJ is within 2 years old then it is typically limited to around £2,500 and if it’s within the last year a maximum of £1,000.

A CCJ stays on your credit file for 6 years, even if it is satisfied. You should check your credit file to make sure the information is accurate. It shows whether your CCJ is satisfied or not, which could help your application.

For more information on CCJ mortgages, contact a member of the team at Clever Mortgages.

How do I get a mortgage with CCJs?

As with most bad credit circumstances, you typically need a large deposit to get your application approved. With a large deposit, it means the amount you need to borrow is less, resulting in a lower LTV ratio. Therefore a lower LTV makes you a better prospect for a lender and more likely to get a better interest rate.

Due to the CCJ on your credit file, however, it’s likely you’ll only have access to higher interest rates than you would with a good credit history. This is because your interest rate is determined in line with the level of risk a lender perceives with your application. Therefore the greater the risk, the higher the interest rate.

Getting a mortgage with a CCJ

Specialist lenders will probably take a less definitive view of a CCJ and consider:

  • Is the CCJ satisfied?
  • How long ago the CCJ was
  • The amount of money the CCJ was for

A CCJ stays on your credit file for 6 years, even if it is satisfied. You should check your credit file to make sure the information is accurate. It shows whether your CCJ is satisfied or not, which could help your application.