CCJ Mortgage Articles
If you are looking for a mortgage but have a problem with ccjs then a ccjs mortgage might be the solution that suits you best. In this section of the site you will find links to our ccj mortgage articles which explain the facts you need to know before making any kind of decision.
Let's start with the basics of a CCJ mortgage
CCJ mortgages fall under the umbrella of bad credit or adverse mortgages. They are usually referred to in the financial world as non-conforming or sub-prime mortgages. CCJ mortgages are designed for people who need a mortgage but have past CCJs on record. CCJ mortgages are mortgages designed for people with an impaired, bad or adverse credit record.
A CCJ is a County Court Judgement. These are judgements that a court makes regarding a debt - a CCJ is a judgement against a debtor. In fact, while many people think of them as a stigma, you actually do not need to owe a great deal to get a CCJ. You can actually get a CCJ for a bill that is unpaid even though it may be quite small. This is why many people need CCJ mortgages.
If you fail to pay a bill on time, the creditor will usually ask you for the money. There may be reminders, by letter or telephone. If you do not make payment within a certain period of time, the creditor may go to court to ask for payment. At the County Court, the creditor makes their case and asks for payment, and if the court decides the debt is owed, a judgement is entered (a) that the borrower should pay and (b) how much they should pay. These court hearings are private and you do not even have to attend, as they can be carried out in your absence. You simply need to respond with the required information by post. After a successful judgement, you have one month to make payment of the amount owed before the information goes on the official record and you have a County Court Judgement (CCJ) against you. After this you may need CCJ mortgages.
You may have one CCJ or many, and it can be for a small amount or large, but it will affect your credit rating and therefore your ability to gain CCJ mortgages. In your credit file, the record will show the number of CCJs you have and whether you have paid them (called "satisfied" them) or not. It will indicate the total amount owed on CCJs.
CCJ mortgages are available from a growing number of lenders who specialise in this type of mortgages. If you have a few low value CCJs, the rate you are offered on CCJ mortgages may not be far from a regular rate. Obviously more CCJs and higher amounts means a less favourable rate on CCJ mortgages, so it is in your interests to repay any that you can. If your credit profile is extremely poor, you may face a high rate of interest, and have a lower number of companies willing to offer you CCJ mortgages.
