If you want to apply for a mortgage, then you have to make sure that you take the right steps in ensuring that you get the best deal. If you have a County Court Judgement (CCJ), this can make things more difficult, but that being said, there are ways for you to ensure the most positive outcome. It all starts with doing your research.
WHAT IS A COUNTY COURT JUDGMENT (CCJ)?
A CCJ is a court order in Northern Ireland, England and Wales. It is registered against you if you don’t repay the money that you owe. If you have received a CCJ, then this can affect your chances of getting a mortgage.
DOES THE DATE FOR MY CCJ MATTER FOR A MORTGAGE?
Yes, absolutely. How recently your CCJ is registered is a very important factor when it comes to getting your mortgage approved. It’s much simpler for you to get a mortgage if you have a CCJ from 3 years ago when compared to 12 months ago. If you have a big enough deposit however, getting a CCJ Mortgage shouldn’t be much of a problem.
CAN I GET A CCJ REMOVED FROM MY CREDIT FILE?
After 6 years, your CCJ will be removed from the register. When it has been removed, your creditor won’t have the power to continue to claim your repayment. Your debt and any references to it will be completely written off, which will put you in a much stronger position to get a mortgage. Your CCJ can appear on your file in just a few days of your judgement being made as well. If you repay it in 30 days however, then your details will be completely removed, and it will be taken off your credit report too. Your CCJ won’t be removed if you make the full payment. The responsibility lies with the creditor to make the court aware that you have done this.
If your creditor doesn’t alert the court, then you may inform the courts yourself. You will need to pay a £15 fee to do this.
CAN I REBUILD MY CREDIT SCORE AFTER RECEIVING A CCJ?
Yes, it is more than possible for you to rebuild your credit score after you have received a County Court Judgement (CCJ). It doesn’t happen overnight, it will increase over time if you carry on making payments to your credit card or to your mortgage. If you check your credit report on a regular basis, then this will help you to spot any errors that may be working against you. Registering on the electoral roll will help you out quite a lot here.
DOES THE SIZE OF THE CCJ AFFECT MY MORTGAGE APPLICATION?
The size of your CCJ is a very important factor. If it’s two or three years old, then it can be any value. If it’s under two years ago however, then the size will come into question when you do go ahead with your mortgage as the bank will need to ensure that you can make the payments.
Getting a Mortgage with a CCJ will depend on various factors like your credit score and the amount of debt you have. Your best chance may be to approach a specialist lender, as they are more likely to consider mortgages for those with bad credit than regular mortgage lenders. When applying for any kind of loan or mortgage, having a CCJ on your record is never going to help. But that doesn’t mean it’s impossible to still get a mortgage.
Most lenders will take into account your credit history when deciding whether or not to offer you a mortgage, thus having implications of having a CCJ on your record. This could also mean paying a higher rate of interest than those without credit issues.
If you want to find out more about the mortgage process with a CCJ, contact our Nottingham mortgage broker, or take a look at the other areas we cover.