How to get a Mortgage with CCJs
You may be worried that you can’t get a mortgage with CCJs hanging over your head, but we can help you to find a mortgage product to suit you.
Whether you realise it or not, having a County Court Judgement (CCJ) against you for unpaid debt can cause difficulties when it comes to applying for a mortgage. Traditional lenders are unlikely to offer their best products to people they perceive as a risk, which is why it’s worth checking your credit record. You can get a mortgage with CCJs but you will need to speak to a mortgage broker in order to ensure that you get the best deal.
How can I get a mortgage with CCJs?
Before you apply for a mortgage, check your credit record to see if there are any CCJs against you. CCJs can be issued without your knowledge, for anything from very large unpaid debts, to an unintentional non-payment of a utility bill. Unless you settle the debt within a month, the CCJ will remain on your credit record for six years, which could impact your mortgage application. If you have paid your debt, you can obtain a “Certificate of Satisfaction” which shows the mortgage lender that you have cleared the debt. Whilst this payment may not allow you access to mainstream mortgage products, you could get a mortgage with CCJs , cleared or uncleared, on your record.
To apply for a mortgage with CCJs, you need to approach a specialist broker. There are a number of lenders that have created mortgage products especially for this market, and a good broker will have access to most, if not all of these products.
What can a mortgage with CCJs do for me?
No matter what your level of debt, you should be able to get a mortgage. Although CCJs show that your creditors are serious about pursuing you for the money you owe,there’s no reason why this should stop you from becoming a property owner. Firstly, you should see if you can settle the debts that are covered by the CCJ. This will show the lenders that you are willing to be serious about reducing your debts, which may put your application in a more positive light. If you can pay your CCJ debts immediately, then do so, or work out a regular payment plan that allows you to reduce your debts gradually.
Although a mortgage with CCJs is another loan, it can actually help your credit rating. The mortgage interest rate may be slightly higher than for traditional mortgages, and there may be some restrictions on early redemption of your mortgage, but if you can show that you are meeting the monthly payments, then your credit rating may improve. More importantly, a mortgage with CCJs lets you get on the property ladder, or move up it, increasing the amount of equity that you may hold in your property.
Can I apply for a mortgage with CCJs now?
If you want a mortgage and you have CCJs against you, you can still apply for a mortgage. Simply contact a regulated, specialist broker, who will be able to look at your current circumstances and the amount you can afford to borrow, and recommend the best products for you. Don’t think that you are the only person that’s applying for a mortgage with CCJs. There are approximately one million CCJs issued against individuals each year and dedicated brokers and lenders are there to make sure that you can still buy the property you want, regardless of the judgements against you.