30 Apr Can You Get a Mortgage With a CCJ?
There is a common misconception that it is not possible to get a mortgage once you’ve been issued with a CCJ. Fortunately, that isn’t the case. If you’re armed with all the right information, you can get a mortgage with a CCJ.
So if you have received a CCJ and are considering your options, this post is for you. Keep reading to find out more about a CCJ, getting a mortgage with one, and how to deal with it on your credit score.
What is a CCJ?
CCJ stands for County Court Judgement. A CCJ is a court order that is issued against you if you fail to make the agreed-upon payments towards the money that you owe. If attempts have been made to recover the debt, through letters, defaults, late payment notices and other reasonable avenues, you may be issued a CCJ. They can be registered against individuals as well as companies.
Getting a mortgage with a CCJ
Getting a mortgage with bad credit is possible, even if it is a bit trickier. If you are able to pay off the debt related to the CCJ within 30 days, it may never actually show up on your credit record, which is ideal. However, the payment defaults that led to the issued CCJ may still affect your credit history.
If you are unable to pay the debt within 30 days, alternative options can be explored. If the CCJ is expensive and was recently issued, the pool of lenders willing to give you a mortgage may be rather small. We have access to every lender here at ams: so if we can’t help, it’s not possible.
If you are in this situation, the best way to tackle it and get a mortgage is by paying off or settling the CCJ, having a regular proven income, and ensuring that you have a clear credit history since the CCJ. Having a mortgage broker will be extremely helpful in finding the right deal once you’ve received a CCJ.
Can I get a CCJ removed from my credit file?
There are three ways that you can have a CCJ removed from your credit file, but there are no shortcuts. You either have to be able to prove that:
- It was paid off within 30 days of being issued.
- That six years have passed since you received the CCj.
- That you successfully disputed the CCJ or another party was proven responsible for it (i.e. it was paid by an insurance company).
How do I rebuild my credit score after receiving a CCJ?
Firstly, you’ll need to ensure that you meet all payments on your CCJ, as well as those on any other credit that you have. If you find that you might miss a payment, contact the lender well before the due date to discuss your options.
When rebuilding your credit score, you should also avoid any applications for new credit. If you absolutely must, make no more than one new credit application in a four-month period.
Lastly, check your credit report and make sure that you have filled in all the sections. Double-check that current addresses and electoral roll are up to date.
Conclusion on getting a mortgage with a CCJ
While getting financial loans with bad credit is not the simplest solution, there are many options and avenues that you can take. If you would like to talk to an expert about your mortgaging options, contact us today.