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.
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 ( 2021 ) 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
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.
Answer: Yes it will if your current credit profile is poor and it would appear that you are struggling financially. What lenders are looking for is good conduct of your financial affairs since discharge.
Answer: Yes, you should always access your credit file yourself to see how lenders will view your credit profile. You can access your file for a one off payment of £2 from www.experian.co.uk
Yes the more historical the CCJ is, the more favourable view the lender will take
Not all lenders require the CCJ to be satisfied, but it would always open the underwriting door a little bit wider if it is satisfied
This will very much depend on the date the CCJ was registered, but in all cases the larger deposit you have, the more attractive the terms will be from the lender
Most lenders would require no CCJ’s in the last 12 months and no more than two or three within the last 24 months
Yes the size of the CCJ does have an impact, if it is considered to be a very large CCJ the lender may restrict their level of borrowing, and we do have a lender who will ignore CCJ’s of less than £300
At 95 % LTV no CCJ’s within the last 36 months and at 90% LTV none within the last 24 months at 85% LTV two within the last 24 months but none within the last six months.
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.
Having a CCJ does not mean that your application will be automatically declined. The mortgage marketplace in 2020 is constantly changing, with lenders looking for business, meaning their lending criteria is always under review.
This is a question that many clients ask because in almost all cases the High Street lenders would refuse an application where the client has a CCJ (County Court Judgement). This is based on the fact that High Street lenders make their decision to lend on credit scoring, which can be quite unforgiving and does not take into account how or why the CCJ was registered.
The answer to the question, ‘can we help you’, is a very big YES. This will of course be subject to fitting the criteria of the specialist lenders, who will accept a credit history which reveals one or more CCJ’S.
Most specialist lenders use manual underwriting, and some have up to eight levels of interest rates on each product (two, three or five year fixed rates) to reflect the level of bad/adverse credit that the client may have.
There are a several factors that will influence the underwriter’s decision, the most powerful one being the amount of deposit (or equity if a re-mortgage) that the client has to offer. With a larger deposit, the loan to value drops, and all lenders view a low loan to value as less risk to them. In these instances, the are likely to be more flexible with their underwriting decisions.
One of the other major factors that lenders consider when making their decision, is the date when the CCJ was registered. The more historical the CCJ is, the more flexible the underwriting criteria will be.
In an ideal world the CCJ should be outside of three years, but we do have lenders who will accept CCJ’s as recently as within the last 12 months, as long as they are not within the last 6 months. This highlights the importance of accessing your credit file in advance, to ensure that you know your credit profile before considering a purchase, or a re-mortgage in today’s mortgage marketplace.
The size of the CCJ will have an impact on the lenders decision because some lenders will ignore CCJ’S less than £300. The other circumstance that some lenders may consider, is if the CCJ is satisfied, but please check before you repay the debt as this does vary from lender to lender.
What you must be aware of is that having a CCJ does not mean that your application will be automatically declined. The mortgage marketplace in 2020 is constantly changing, with lenders looking for business, meaning their lending criteria is always under review.
Get started today. Simply fill out our enquiry form and a member of the Michael J Alexander team will be in contact.
• Late or missed payments on credit arrangements
• Mortgage arrears
• Defaults on credit arrangements
• Poor conduct of your bank account
• County Court Judgments ( CCJ’S )
• Previous repossession
• Bankruptcy
• Individual voluntary arrangements.( IVA )
• Can you be found on the electoral roll( IVA )
• Debt management.
• How long have you been in your current employment
• Is your employment permanent
• Are you on the electoral roll
• Are you servicing your current commitments in a satisfactory manner?
• Your age
• Type of employment
• Will your travelling expenses increase by moving
• Is the property construction going to raise any problems
Whether you have been discharged 3 years or 12 months – it doesn’t matter, we can help.
We’ve been helping discharged bankrupts get back on to their feet and back on to the property ladder despite their circumstances. Arranging a bad credit mortgage or mortgage product for discharged bankrupts is a scenario we regularly deal with. Even if you have a history of bankruptcy and resposession we have access to whole of market lenders who will consider your application on various factors.
