What To Expect From CCJ Mortgages
Since the credit crunch, all mortgage rates including CCJ mortgages rates have gone up. Banks do not want to lend money to each other, so they have had to start producing less competitive and fewer mortgages. In fact with a specialist lender you can expect to see rates several percentage points above what you would have with CCJ mortgages a year ago. Lenders just cannot afford cheap deals, especially to those with adverse credit histories. So if you are shopping, don’t be surprised by rates that could well leave you out of pocket at the end of the month.
Tighter Credit Limits
The nature of the credit crunch has been less credit in the world. People are less trusting to lend money, stemming from the sub prime mortgage crash in the USA. So that means to get a loan, including CCJ mortgages, you are going to have to have a better credit score. This can come about by improved borrowing habits over time – so if you have been towing the line financially since your CCJ, you may be in luck. If you haven’t, but still need CCJ mortgages, maybe you will need to hold out a little longer. But that’s nothing to worry about, there are plenty of other options open to people with adverse credit right now.
Need For More Equity
Because there is less trust and tighter credit, another result of the credit crunch with CCJ mortgages is that you will need a bigger deposit on your home. This may mean having 20% or even 25% of the property’s worth before you come to buy. This might be tough for some people, but it is a real need in today’s climate. Of course, there are options for people looking for CCJ mortgages who cannot afford a large deposit – the Government in particular have created many schemes and benefit ranges for those with adverse histories who want to buy a home. There are always different avenues, even for people who need CCJ mortgages.
To explore these avenues, and many others, you need advice. More than ever, those who think they need CCJ mortgages have to talk to an adviser. They will not be the best people to decide what you need mortgage-wise, but they will help you search for that one deal that will work with your circumstance. With an adviser even someone with the need for CCJ mortgages can find something to help them financially during these tough times.