Mortgages with CCJ’s
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Getting a mortgage when you have bad credit from a CCJ
Having a poor credit rating can make it more difficult to buy a home – but it’s not impossible. Even if you’ve had serious debt problems resulting in a County Court Judgement (CCJ), you may still be able to get a mortgage. Some lenders even specialise in bad credit mortgages.
What is a CCJ (County Court Judgement)?
A County Court Judgment (CCJ) is a type of court order that might be issued against you if you fail to repay money that you owe. They don’t come out of the blue – you will have received a written warning from your lender before the County Court claim form arrives in the post.
If you can pay back the money owed within 30 days of the CCJ it will usually be cancelled. If it remains unpaid it will appear on your credit record and usually has quite a significant effect on your ability to borrow money. Not many lenders will take on a customer with a CCJ.
Can I still get a mortgage if I have a CCJ?
It’s certainly possible to get a mortgage with a CCJ, but you will need to have repaid the debt. It helps if the CCJ is from a number of years ago and you have been working to improve your credit score since – by staying out of debt, remaining within credit card limits etc.
If you have a large cash deposit for a home, for example 25% or more, your credit report is of much less concern to a lender. Another option is to opt for a joint mortgage with someone who has a better credit history.
Does the date of a CCJ matter for a mortgage?
The more recent your CCJ, the bigger its impact on your chances of getting a mortgage. If it was more than six years ago, however, the record will have disappeared from your file.
Generally, a CCJ from three years ago or more has a smaller impact on your mortgage application than one within the past year, but each lender will have their own criteria.
Does the size of the CCJ affect my mortgage?
The size of the CCJ is important, especially if it is recent. A CCJ of more than £1,000 in the past 12 months will be a big warning sign to a lender, while a settled debt of a hundred pounds or so five years ago may not be of too much concern.
How can I remove a CCJ from my credit file?
You can only have a CCJ removed from your record in certain situations:
- if you can prove you repaid the debt within 30 days
- if it’s over six years since you received the CCJ and it still shows on your credit history
- if you successfully prove that the CCJ wasn’t valid or it was settled another way
- if you never received the CCJ in the first place
In these cases you should contact the three credit reference agencies (Equifax, Experian and TransUnion) and ask them to add a ‘notice of correction’ to your credit report. You may also need to contact the County Court that issued the notice.
How can I rebuild my credit score after receiving a CCJ?
There are a number of ways to improve poor credit history. First, make sure you are listed on the electoral roll – this is a basic requirement for credit. Checking your credit score for any other errors is also an important step.
Next, you need to keep up to date with any payments due – on your CCJ, utility bills etc. If you are in a debt management plan, stick to it.
Avoid applying for new credit as much as possible – every application for a loan or finance deal will show on your record, and too many can be a warning sign to lenders.
How can speaking to a specialist Mortgage Broker help if I have had a CCJ?
Mortgage Brokers are dedicated experts in the mortgage sector. Whether you are a First Time Buyer or looking at remortgaging with bad credit, our team will help you explore the available mortgage deals.
We have helped many people with CCJs in successfully applying for a mortgage and purchasing a home. We work through the whole process with you, identifying lenders that are likely to accept you, exploring your deposit options and resulting monthly repayments.
We’re registered in England & Wales and registered with the Financial Conduct Authority