Can You Get a Mortgage With a CCJ?

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What is a CCJ and how can it affect getting a mortgage?

Can you get a mortgage with a CCJ?

Can I dispute a CCJ?

How can I rebuild my credit score after receiving a CCJ?

Mortgage Advice for Customers with Bad Credit

What is a CCJ and how can it affect getting a mortgage?

A CCJ (short for County Court Judgement) is a court order in the UK that is issued to you if you are incapable of keeping up your monthly mortgage repayments.

Once you are issued a CCJ, you will be given a 30-day period to pay off your CCJ. This is called a satisfied CCJ. If you are able to meet this deadline, the CCJ may be taken off your credit file. On the other hand, if you are unable to meet this payment, your CCJ will remain on your record for 6 years in total. This is called an unsatisfied CCJ.

Having a CCJ tied to your name can negatively affect your credit file, which in turn could mean you have a reduced chance of obtaining a mortgage. We would always recommend speaking with a specialist mortgage advisor if you have a CCJ and are looking to get a mortgage.

Can you get a mortgage with a CCJ?

Depending on specific circumstances, yes this is still possible. By enlisting the help of a specialist mortgage broker, you may be able to obtain a mortgage with a CCJ.

If you were able to meet the 30-day deadline on your CCJ, it can be withdrawn from your credit file. This will increase your chances of finding mortgage success. Typically speaking, if you are further away from the issue date and don’t have a huge amount left to pay off, you will also be more likely to be accepted for a mortgage.

Unfortunately, if you couldn’t make that payment, it will be on your file for 6 years. This makes it more difficult to get a mortgage. Another case where getting a mortgage may be challenging, is if the CCJ has been issued recently.

When a CCJ is tied to your credit file, mortgage lenders will want to know more about it and why you have it. They will look for factors such as if you already owe money to another mortgage lender, the effect your finances could have on the property and how well overall you are able to manage your finances.

When you apply for a mortgage with a CCJ, your Mortgage Advisor will want to look at a couple of things:

• How many CCJs are currently in your name?
• What is the value of the CCJ?
• Is your CCJ settled or unsettled?
• How much saved deposit do you have?
• What dates were the CCJ’s registered?

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Can I dispute a CCJ?

Although it may be a challenge to do so, providing you have sufficient evidence, it may be possible to remove a CCJ from your credit file.

Perhaps you feel like being issued a CCJ was wrong. In this case, you have the ability to ask the court to reopen the case that is against you. This comes with costs though, and it could be argued that those costs may be better off used for simply paying off the CCJ.

In addition to this, if you fail to attend your hearing, not only will your case be rejected, but you will still owe the court costs.

That being said, if you appeal it successfully and it is removed from your credit file, this will be great and increases your chances of being accepted for a mortgage. Conversely, the court could reject your appeal. This means you have lost money and still need to pay it off. It’s up to you to weigh up the risks.

If you would like to appeal your CCJ, you will be required to fill out an N244 form and send it to the court. Once this has been done, if your case is reopened and the court agrees that the CCJ was wrongly imposed, they will be able to remove the CCJ from your name.

How can I rebuild my credit score after receiving a CCJ?

There are steps that you can take to improve your credit score after receiving a CCJ. In order to achieve this, you will definitely benefit from enquiring with us for bad credit mortgage advice. Sometimes all it takes is the assistance of a specialist mortgage broker to get you back on track.

You definitely need to keep up with your monthly mortgage repayments, any current financial commitments that you have and your CCJ, for the 6 years that it is on your file.

Even if you were able to pay it off within the 30-day window, you still need to be very careful with your finances, to make sure that something like this doesn’t happen again. The reason for this is that multiple CCJ’s can cause further harm to your credit file and even stop you getting a mortgage.

If you have or recently had a CCJ tied to your name and would like to look at your mortgage options, book your free mortgage appointment today and speak to a specialist mortgage advisor. They’ll take a look at your case and advise appropriately.