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Mortgages with CCJ

Can I Get a Mortgage With CCJ?

Yes, you can still apply for a mortgage with CCJ & New Start Financial Services can help.

By 2008, at the time of the ‘credit crunch’, lenders catering for clients with poor credit had almost disappeared. Some lenders stopped lending completely and others moved to more mainstream lending only and many of the adverse lenders from the early 2000’s were forced to exit the market completely as either their appetite for risk reduced or they ceased trading. 10 years on, things have changed. There are now a number of options for clients who have experienced financial difficulty and though applying for mortgage with CCJ may prove more difficult, it is not impossible.

If you haven’t settled your bills on time, your creditors can make a County Court Claim against you. If your bill is wrong then the court will allow you to make a case and the registrar will make a legally-binding decision whether you should pay or not. If you admit that you owe money, or the court decides you do but you are unable to pay it back immediately, the court will devise a payment plan. You will though be given a month to clear the debt and if you do a County court judgement will not be registered. If you don’t – your name will be entered on the register of judgement and your name will stay on the register for six years.

If you clear your CCJ, it will be marked as ‘satisfied’ but will stay on your profile for six years from the point it was registered. Getting this CCJ marked as satisfied can improve your credit score but your options will still be restricted. Lenders will always credit search you, in most cases by either Experian or Equifax and with a CCJ it is unlikely High Street Lenders will be able to help. Having said that, lenders make their own decisions about who to lend to, and many of them may take account of the “satisfied” marker against a CCJ particularly if the CCJ was registered a number of years ago and was a ‘one off’. The County Court Judgment will disappear after six years, whether you leave it or clear it. There are though a number of specialist lenders that would consider lending up to 90% LTV depending on your overall profile if you have a CCJ.

County court judgments will limit your options, not though to the same degree as a bankruptcy or repossession. The main factor for lenders here is how long ago the CCJ occurred, the value of the judgement and some cases if they have been settled or are still outstanding. Most specialist Lenders will ignore anything that is 2 or 3 years old, with some even considering judgement within the last 12 months with a reasonable explanation.

CCJ’s may not be the only problem affecting your potential application. If you haven’t borrowed money or had a credit card, you will have limited credit history. This means that Lenders will be unable to assess how good or not you might be at repaying the debt and may refuse your mortgage application. Specialist Lenders though are available and a good mortgage broker will be able to identify solutions that is most suitable for your situation.

Why use a specialised broker?

Sub-prime mortgages are mortgages for borrowers that don’t fit standard criteria and need a little more help in finding the right solution. Prior to 2008 this meant severe adverse credit and less severe problems were very often catered for by High Street Lenders. Following the credit crunch specialist lenders almost disappeared from the market and High Street Lenders appetite for risk disappeared, so for a number of years applicants with special needs really had no options

Now though whilst the High Street stays firmly in the camp of credit score lending there are a number of specialist or niche lenders who actively want to lend from clients with failed credit score borrowers with minor problem or ‘near prime’ all the way up to more severe problems such as having defaults, CCJ’s, pay day loans, missed payments, debt management schemes and bankruptcies.

A good specialist brokers can help you find the right, most suitable solution, for you based on your circumstances – if your credit score is damaged they can help find you a lender who is right for you even though you have probably been declined by a high street lender. A good broker will have an in-depth knowledge of the market and they will be able to recommend the most suitable mortgage for you minimising the risk of your application getting rejected.

Stuart Dibley Specialist
Mortgage Adviser

To find out exactly what you're eligible for and at what rates please give me a call on 03456 123835 or fill out a quick enquiry form here.