The Bad CCJs Credit Mortgage: Understanding CCJs
If you’re going to apply for a bad CCJs credit mortgage then it is best to understand something about how CCJs work and how they can affect your bad CCJs credit mortgage . This will ensure that you pick the right lender and make the best of your bad CCJs credit mortgage.
When thinking about a bad CCJs credit mortgage, the first thing to know is what CCJs are and how you get them? People who end up with a bad CCJs credit mortgage usually do so because of a problem with unsecured debt. Unsecured debt is credit card debt, personal loans, store cards and any other credit agreements that don’t require you to provide security. A bad CCJs credit mortgage is a secured debt.
CCJs – or County Court Judgements, to give them their proper name – are issued when creditors (that’s people you owe money to) seek a judgement in the County Court to confirm that the money is owed. This may happen if you are late with a couple of payments or default on payments and is one of the factors that might lead to a bad CCJs credit mortgage. CCJs can be issued even if you have previously arranged to pay a token amount to each creditor.
For example, you may have said to all your creditors that you can pay them each £25 a month until the debt is cleared. As long as they accept that, that’s fine. But some creditors may want to put it on record what you owe them and may seek a judgement in court. That means you end up with a CCJ for the amount that you owe. As these mount up, you may find that you need a bad CCJs credit mortgage.
How A CCJ Is Issued
There are various processes that need to be followed before a CCJ can be issued, and before you are likely to need a bad CCJs credit mortgage. For example, the creditor will issue a claim form with details of the debt. You then have the choice of admitting or denying that the debt is yours or requesting extra time to complete the paperwork. If you admit it, then the court will need a statement of income and expenses before issuing the CCJ. The CCJ will set an affordable regular payment based on your financial circumstances. If you later find that you can’t pay that amount you can apply to the court to have it changed. At this point the debt is still unsecured. However, if you fail to pay on time a charging order may be issued which secures the debt on your home. A bad CCJs credit mortgage may be the only solution for you.
Another option if you are in difficulty is to consolidate your debt with a bad CCJs credit mortgage. This means that even if you have CCJs you can get a mortgage from an adverse credit mortgage lender and pay off all your creditors, leaving just the mortgage to pay. Pay it properly and you will be well on the way to rehabilitating your credit. That’s one advantage of a bad CCJs credit mortgage.