If you are wondering, "Can you get a mortgage with a CCJ?" the answer is yes, it is possible.
For many though, with loans or credit cards, missing any payments will often result in the lender serving a notice on your credit file.
Receiving a County Court Judgment (CCJ) on your credit file will unfortunately show up on your credit rating for up to 6 years, making it especially difficult to get a mortgage. When you apply for a mortgage, the lender will check your credit rating and any CCJs will highlight that you have experienced debt/repayment problems in the past that have led to legal action being taken.
Can you get a mortgage with a CCJ?
If you have a CCJ on your credit file, you may be curious about the possibility of securing a mortgage. “Can you get a mortgage with a CCJ?” It is a common question for individuals with a County Court Judgment on their credit file. We are happy to say that while having a CCJ can pose challenges, it is still possible to obtain a mortgage!
A CCJ typically impacts creditworthiness and makes lenders more cautious about lending to you. To compensate for perceived risk, lenders may charge higher interest rates for borrowers with CCJs. The whole area is a “minefield” if tackled alone, which is why at ams: we recommend working with an established mortgage broker like us to navigate the mortgage landscape for you.
An ability to demonstrate sound financial management and build a stable financial history will help strengthen your case. This includes earning a consistent income and having a good payment record (predominantly without missing or late payments).
How to get a mortgage with a CCJ
There are numerous ways we recommend when considering “how to get a mortgage with a CCJ,” these are summarised below:
- Check your credit report – we advise that you start by checking your credit report to ensure that the CCJ is accurate and up to date. If there are errors, get them removed ASAP and before you apply for your CCJ mortgage
- Specialist CCJ mortgage lenders – it is necessary to approach specialist mortgage lenders who specialise in catering to individuals with CCJs. These lenders provide mortgage products tailored to their specific circumstances
- Seek professional advice - collaborating with a mortgage advisor (like ams:) that specialises in CCJ mortgages significantly enhances your prospects of finding a suitable mortgage deal. Each lender has different criteria, so it is crucial to seek professional guidance and explore your options to maximise your chances of obtaining a mortgage with a CCJ, this is recommended rather than approaching lenders directly
- Larger deposit - a larger deposit can help mitigate the impact of a CCJ and increase your chances of mortgage approval
- Satisfied CCJs - having a satisfied CCJ (where the debt has been paid) improves your chances of securing a mortgage compared to having an outstanding CCJ (more on this below). If you can settle a CCJ, it is advisable to do so
- Time since the CCJ - the longer it has been since the CCJ was registered, the greater your chances of obtaining a mortgage, as CCJ mortgage lenders may be more inclined to consider your application
Is it important to find specialist CCJ mortgage lenders?
A specialist mortgage lender should be able to find you a suitable mortgage that works with your current circumstances. Even if you have a payment default or CCJs on your file, there will be other mortgage possibilities that we can help you with – these are likely to be slightly higher in terms of interest rates, as lenders will see you as a higher risk.
Will a satisfied CCJ affect mortgage applications?
In the UK, even if you have a satisfied CCJ, it can still have an impact on your mortgage applications, although it will be less severe compared to having an outstanding CCJ. Lenders carefully evaluate various factors when considering mortgage applications, including your credit history.
While a satisfied CCJ indicates that the debt has been settled, some CCJ mortgage lenders may still view it as a negative factor. However, the longer the duration since the CCJ was satisfied and the more time that has elapsed, the less impact it is likely to have on your mortgage application.
It is highly recommended to seek professional advice to gain a clear understanding of the specific implications of your unique circumstances. So, will a satisfied CCJ affect mortgage application success chances? When you engage with a specialist mortgage broker, they will engage on your behalf and make sure it does!
Contact ams: today
Remember when trying to secure a CCJ mortgage to speak with one of our mortgage specialists, by calling us today on 0121 4000 052. Our advisors will be understanding of your situation and quick to find you a solution. Contact us and send a web enquiry form here.