Are you wondering, "Can you get a mortgage with a CCJ?" At ams: we understand the challenges individuals with County Court Judgments (CCJs) face when seeking a mortgage.
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?
The term “CCJ” stands for County Court Judgement. A CCJ is a legal order issued when you fail to meet your payment obligations for a debt. It is a consequence of not fulfilling the agreed-upon repayment terms. When measures have been taken to retrieve the outstanding debt, through default notices, letters and correspondence, notices of late or missed payments and other reasonable avenues, you may be issued a CCJ. They can be registered against individuals as well as companies.
If efforts have been undertaken to recover the outstanding debt
Can I get 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 CCJ debt in 30 days or less, it may never actually show up within a 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 in the required 30 days period, alternative options can be explored. If the CCJ is expensive and was recently issued, the selection of lenders prepared to grant 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.
We are often asked, “Can I get a mortgage with a CCJ”? If you are in this situation, the best way to tackle it and get a mortgage is by:
- Paying off or settling the CCJ
- Demonstrating a consistent and verifiable income, and
- Making sure your credit history is clean following the CCJ
Mortgage experts (like ams:) will be extremely helpful in finding the best mortgage offers once you’ve received a CCJ. Visit our mortgage with CCJ page for detailed advice and guidance about getting a mortgage with a CCJ.
Can a CCJ be eliminated from my credit report?
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:
- The payment was settled within 30 days of its issue.
- It has been six years since the CCJ was issued.
- That you effectively contested the CCJ, or it was determined that another party was accountable for it (such as an insurance company covering the payment).
Successfully obtaining a mortgage despite a CCJ
With careful planning and preparation, it is possible to obtain a mortgage successfully despite having a County Court Judgment (CCJ). The following strategies are recommended:
- Enhance your credit score - work on improving your credit score by ensuring timely payments, reducing existing debts, and displaying responsible financial habits (more details are included in the section below).
- Explain the circumstances - When applying for a mortgage, offer a clear and detailed account of the circumstances surrounding the CCJ. This helps lenders understand the situation better and may lead to a more favourable consideration of your application.
- Save for a larger deposit - increasing your deposit amount will boost your chances of mortgage approval by lowering the lender's perceived risk.
- Seek guidance from a mortgage advisor - can you get a mortgage with a CCJ? It is challenging but not impossible. Mortgage advisors like ams: can assist you in exploring mortgage options tailored for individuals with CCJs. They can assess your specific situation, offer personalised advice, and connect you with lenders with CCJ expertise, ones more inclined to approve your application.
By implementing these strategies and utilising the expertise of mortgage professionals, you can improve your chances of successfully obtaining a mortgage despite having a CCJ.
What are the steps to restore my credit score after obtaining a CCJ?
Firstly, you’ll need to ensure that you meet all CCJ payments needed, as well as those on any other credit that you have. If you think you might not be able to make a payment, it is important to contact the lender well before the due date to explore possible options.
When rebuilding your credit score, you should also avoid applying for further credit. If you absolutely must, make a maximum of one new credit application in a four-month period.
Lastly, make it a point to review your credit report and ensure that all sections have been duly filled in. Double-check that your current address and your electoral roll information is accurate.
Conclusion on getting a mortgage with a CCJ
Wondering if you can get a mortgage with a CCJ? Yes, it's possible. Speak to our experts at ams: to explore mortgage options tailored to your situation. If you would like to talk to an expert about your mortgaging options and “can you get a mortgage with a CCJ”, call us on 0121 4000 052 or contact us today.