Mortgage with CCJs

Getting a mortgage with CCJ’S has become easier with the new specialist lenders who have come to the market looking to help clients who have had credit problems in the past.

The main criteria for a mortgage that will accept CCJ’s is;

1 When was the CCJ registered ?

2 What is the amount of the CCJ ?

3 What was the debt in respect of ?

4 Has the CCJ been satisfied ?

With this level of information we are then in a position to see how we may help you and what terms may apply. If there are a number of CCJ’s we would need the same information  with any background information as to what caused the credit problems which any underwriter may wish to take into account when accessing the risk.

With some of our specialist lenders the size of the CCJ is very important as anything less than £300 may be ignored when ever it was registered.

Another unusual point is that some lenders will ignore CCJ’s and Defaults that were registered in respect of mobile phone contracts, so these little bits of information may make a big difference to how your application is viewed.

When the CCJ is registered is again important because with most of the specialist lenders if the CCJ was registered over two years ago it will be ignored, satisfied or not, depending on the size of the deposit ( minimum 10% deposit ). If you are trying to obtain a 95% mortgage in the current market ( 2019 ) you must not have any adverse credit in the last 36 months.

The larger deposit that you are able to put down, the more attractive you become to the lender who would then take a more flexible attitude towards adverse credit and the terms of the mortgage would reflect the lower risk aspect by the lender.

We do need to know if a CCJ has been satisfied as this may have an impact on the decision made by the lender in certain circumstances. This would normally be where the CCJ has been registered within the last 24 months and the lender may ignore the CCJ if it has been satisfied. Having said that most lenders would allow the client to settle the CCJ prior to completion if that was critical to accepting the application.

Some of our lenders will accept a CCJ with the last 12 months, but none in the last six months. This will have an impact on the terms so we do need to get the correct position up front.

What would be very helpful in all cases is to see a copy of your credit file that the lenders Underwriters would be viewing to make their decision. You can obtain your credit file for a one off payment of £2 by a debit card or op for a one month’s Free Trial from

www.experian.co.uk

www.equifax.co.uk

Once we have seen your credit file we are in a very good position to advise you correctly on how any lender would view your application, if not today when they would accept an application.

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Getting a Mortgage with County Court Judgements

The more historical the judgement is (i.e. two years or more) it would generally be ignored, paid or not. It becomes more difficult when the CCJ is dated within the two-year time frame, and what the judgement relates to. Some lenders may take a view when a CCJ is under £300 or in respect of a mobile phone contract.

Because this is a manual underwrite and not based on points scored, some lenders will accept bad credit within the two-year period depending on the loan to value. Providing a bigger deposit is viewed by the lender as creating lower risk and allows them to take a more flexible approach to their underwriting.

 

Getting a copy of your credit file up front is very important as it allows us to see the same level of information as the lender’s underwriter which allows us the opportunity to discuss your application with an underwriter if there are any areas that are not clear how they may be viewed.

We much prefer to be able to discuss your application with all the facts at our disposal, meaning the information we feed back to you is 100% factual and any illustration we send to you is based on that information.

For your information, if a CCJ was registered at an address that you were not living at, at the time the judgement was served, under County Court law you can have it removed. The Court will then serve it on the correct address, but if you settle the debt with 30 days it will not appear on your credit file.

 

The overall cost for comparison is 5% APR. The actual rate available will depend on your circumstances. Ask for a personalised illustration.