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CCJ Mortgages
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Understanding What a CCJ is and How it Affects a Mortgage Application
A CCJ is issued by a county court when you fail to repay money you owe.
It appears on your credit report and may influence how mortgage lenders assess your application.
If you pay the CCJ within 30 days, it can be removed from your credit file entirely.
If left unpaid, it remains visible for six years.
This longer-term presence can affect how some lenders view your financial track record, particularly if the CCJ is recent or unresolved.
Can you still be approved for 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If you were able to meet the 30-day deadline on your CCJ, it can be withdrawn from your credit file.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?
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.
