Can I get a CCJ mortgage?
Can I get a mortgage with previous CCJ?
A County Court Judgement (CCJ) can be very harmful – particularly when it comes to opening a bank account or applying for credit cards or mortgages. A CCJ is essentially a court order registered against you for failing to keep up with agreed payments, as an individual or company. We are often asked if you can obtain a mortgage with a CCJ. The good news is that some types of bad credit mortgage are available. However, a successful application will depend on a range of factors – such as how recently it was registered. The older the CCJ and satisfied the stronger your chances.
What is a CCJ?
A County Court Judgement (CCJ) is a court order that can be registered against you. This can be as an individual or as a business. This can even be for something small such as parking fine.
A CCJ is considered more serious by a mortgage lender because by the time it gets to this stage you will have had numerous reminders and legal correspondence from the issuer. The lenders will see a CCJ as an unwillingness to pay a debt. The correspondence will offer alternative ways to avoid any court action.
If you don’t respond, then the court will make a ruling based on the information presented. They will then write to you to say.
- The amount you owe
- How you need to pay it
- Deadline for payment
- The company you should pay and details on how to do so
You will get a certain amount of time to pay the debt in full. If you do so, then it won’t be recorded on your credit file.
As you can see the process is not a short one and therefore a CCJ is seen as more serious than a defaulted account.
If you get a CCJ and can satisfy it within 1 month you can get is set aside. Click here for more information.
How long does a CCJ stay on my credit file?
A CCJ remains on the Register of Judgement, Order and Fines and on your credit report for 6 years. This is from the date the CCJ was registered at the court.
Even with a CCJ on your credit file it is still possible to get a mortgage. Any case will look stronger with a satisfied CCJ.
Does satisfying a CCJ increase my chances of obtaining a bad credit mortgage?
If the CCJ in question has been declared as ‘satisfied’, you have an improved chance. This means that you have stumped up any outstanding charges and the CCJ has been concluded. Some bad credit mortgage providers specify that 12 months need to have passed on a settlement. Others may have more relaxed criteria. The sum involved with the CCJ can be a big factor also. If it’s considered to be too hefty a sum, then you can expect this to affect the loan-to-value (LTV) ratio, which means lenders are less likely to take a risk on you. If there are multiple CCJs, this can bring further setbacks. A track record of late or missed payments will hinder your mortgage options.
What is the deposit level for a mortgage with a CCJ?
The amount that potential lenders ask you to provide as a deposit is likely to vary according to the type of CCJ you have registered against you – or the age of it. The older the CCJ, the more reasonable you can expect your deposit percentage to be. If you’ve been suffering from credit issues, it could be that you have a CCJ against your name without your knowledge. It’s easy to miss a court order if you have recently moved address, for instance.
If you have a deposit of 5% then ideally you would need to be registered and satisfied over 3 years ago.
10% then ideally you would need to be registered and satisfied over 2 years ago.
15% deposit this will open more avenues to the mortgage market, the CCJ can be as recent as the within the last 12 months.
How much I can borrow with a CCJ?
Each case is assessed on its individual merits. The typical calculation is between 4-5 times income. The larger your deposit levels the more chance of borrowing more money.
They will also look at your income and any other expenditure, other debts, childcare costs and basically any monthly commitment.
Using the right lender for your circumstances is pivotal in ensuring you can borrow the money needed and at the best possible rate of interest.
Speak to a CCJ mortgage advisor.
There are many lenders available ranging from high street to specialist lenders. Most people go to their own bank, get declined or can’t borrow what they need – just because one lender has declined you, don’t give up.
Our mortgage experts will look at each case before deciding which lender is right for you and your individual circumstances. All the mortgage brokers we work with are whole of market and offer unbiased advice. They will have access to all the specialist lenders to really enhance your chances of achieving the mortgage you need.
The expert brokers we work with have experience in dealing with all aspects of mortgages with CCJ’s, and importantly using the whole of the market to access the very best deals available.