Mortgages with CCJs
Getting a mortgage or remortgage when you have a County Court Judgement against your name can be difficult. However, if you contact a CCJ mortgage specialist who has expertise in finding mortgages for people with CCJs, you might find there are suitable products available. A specialist advisor has access to a panel of lenders in the UK who are sympathetic to people with past credit problems.
Regardless of the reason as to how your County Court Judgement was acquired, most banks and building societies feel uneasy about lending to people who, in their opinion, have proved that they cannot stick to an agreed repayment schedule.
However, your past credit history should not prevent you from securing a home loan, providing you can put forward a reasonable deposit. There are a small number of lenders in the UK who are more accepting of individuals with CCJs. A specialist broker will work closely with them and can advise you on the CCJ mortgage products available to you.
Your mortgage should be seen as a programme of credit repair that will ultimately put your repayments back in line with some of the cheapest in the market.
Example borrower profile
Below is an example of the type of people that could benefit from using a specialist lender. The example does not reflect an actual customer but is intended to demonstrate the profile of the types of individual we can assist.
Melanie Granger is a 32 year old marketing and communications officer who was able to climb her first rung on the housing ladder, despite having a CCJ listed on her credit report.
A few years ago Melanie was made redundant and due to her substantial loss of income got into difficulty keeping up with the repayments on her credit card. After missing three payments the card company issued county court proceedings against her to recover the money she owed. In 2012 she was issued with a CCJ for £515.
Fortunately things improved for Melanie and a couple of months later she managed to gain full time employment on a better salary than previously. She made it her priority to clear the debt and by January 2013 the debt was fully paid off and the CCJ was marked as satisfied on her credit file. Even though the CCJ was satisfied it will remain on Melanie's credit report for six years from when it was issued.
By early summer of 2015 Melanie had put aside savings of £12,000 and had got engaged to Tom, her partner of two years. They both had their heart's set on a one bedroom flat in Brentwood, Essex which was on the market for £180,000. Tom's savings amounted to just over £15,000 so collectively they had £27,000 which meant they were able to put down 15% on the one bedroom flat. They approached a high street bank with much trepidation, fearing Melanie's CCJ could thwart their chances of getting a mortgage. Because of the automated credit scoring used by high street banks their application was indeed rejected because Melanie's credit score was not high enough.
At this point they were feeling really despondent but they turned to the internet and came across us. Their despondency turned to joy as we were able to approach a specialist lender on their behalf who took a look at their circumstances. An underwriter examined their case and could see that Melanie's CCJ was issued three years previously and since then had not had any issues. As both applicants were in relatively well paid jobs, it was determined they could comfortably afford the mortgage, so following all the necessary checks the lender said 'yes'. Tom and Melanie moved into their new home in September 2015 and are now focussing their attention on planning their wedding.
This case study illustrates how specialist niche lenders come into their own when traditional high street lenders wave away perfectly good applicants due to their credit history being anything other than exemplary. Niche lenders adopt a less rigid approach when it comes to making lending decisions and their acceptance criteria is based on individual circumstances rather than automated credit scoring.
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