CCJs are an indicator to mortgage lenders that you could be a risky proposition as a borrower. In fact, many high street lenders won’t even consider applicants who have County Court Judgements against their name. But does that mean you can’t get a mortgage with a CCJ? Not necessarily.
Yes, it is possible to get a mortgage with a CCJ from 2016. Whilst the CCJ will remain on your credit file for 6 years from the point of registration, there are some specialist mortgage lenders who offer mortgages to people with defaults, CCJ, and bad credit history.
How our advisers can help
People with a CCJ from 2016 could still get a mortgage and onto the property ladder with the support of our specialist mortgage advisers.
Our advisers are experts in working on bad credit mortgages, with an experience spanning many years of supporting applicants like yourself.
They have an in-depth knowledge of the bad credit mortgage market, the available lenders, and how best to plan an application that will stand the best chance of success.
How date of registration can help
At the time of publishing this guide in 2019, your 2016 CCJ could be approaching the 3-year period. This is important, because some of the specialist lenders our advisers recommend look more favourably on CCJs where 3 years has passed since being registered on your credit file.
With CCJs of 3 years ago or more, many lenders will offer better terms than you could expect with a newer CCJ registered in the last 36 months. That could mean that even if you have been turned down by a high street lender, our advisers could still find you a deal.
This is why it’s so important to work with an adviser who understands the bad credit mortgage market – contact us today for initial free advice by completing an enquiry form or calling the phone number at the top of the website.
Can I get a mortgage with a CCJ from 2016 or not?
There was a time before the credit crunch where high street lenders offered sub-prime mortgage products, with lending criteria not as strict as it has become today.
After the recession things changed, but in more recent years a wider range of specialist lenders have come into the market, prepared to work with bad credit applicants.
In fact, by 2014 it was reported that there were around 120 different mortgage types, many of which could be taken out by people with CCJs registered against their name.
Fast forward to the present day, and it means that there are far more options than ever before available to applicants with poor credit history.
It might be possible for you to get a mortgage, despite having a CCJ from 2016.
To find out how contact Specialist Mortgage Online. You can take advantage of an initial free consultation to find out what your options could be.
What will mortgage lenders want to know?
Every mortgage application will be assessed on its individual merits, include how credit worthy you are deemed to be. This can become trickier if you have a CCJ from 2016 but is not insurmountable.
Mortgage lenders will assess your application and credit history, including aspects such as:
- When was the CCJ registered and how old is it?
- Why did one of the joint mortgage applicants have a CCJ issued?
- How many CCJs have been registered against one of the joint mortgage applicants?
- What was the value of the CCJ?
- Has the CCJ been satisfied?
The most important aspect above is relating to the date at which the CCJ was added to your credit file in 2016.
Since then, enough time should have passed to mean that specialist mortgage lenders will be more inclined to look on your application favourably, versus a recent record of bad credit.
You will be in an even better position if you have satisfied the CCJ from 2016. By paying it off, it will demonstrate to lenders that you have taken responsibility for your financial matters – and that makes you less of a credit risk.
Having said that, even if you the 2016 CCJ is satisfied, it will still remain on your credit file for 6 years, so the mortgage lender will still see it.
But what about if you haven’t satisfied and paid off the CCJ?
In this situation, there could still be some mortgage options available to you, as some specialist lenders won’t be as strict, as long as the CCJ is 3 years old or over, whether it’s paid or not.
If you would like to know more about mortgages and CCJs and how they can affect your changes of getting a home loan, view our CCJ mortgages section.
What type of mortgage can I get?
Our advisers could help you get a mortgage with a CCJ from 2016, with the most common types including, but not limited to:
- First time buyer mortgages
- Self-employed mortgages
- Buy to let mortgages
- Shared ownership mortgages
- Joint mortgages
- Help to buy schemes
How much deposit will I need?
Whilst there could be a mortgage offer out there for you, you are likely to be limited to whom you can borrow from.
It’s also going to be likely that you will be on a higher interest rate than a standard mortgage where an applicant doesn’t have bad credit history. You will also probably need a larger deposit than typical.
Higher interest rates and larger deposits are common in bad credit applicant situations, because you will be seen as a higher risk to the lenders.
You might also have to pay arrangement fees that are higher than what the high street lenders are offering.
We recently published a CCJ mortgage calculator page which lets our advisers gather some initial information to help come up with borrowing options.
What is a CCJ?
CCJ is an acronym of County Court Judgement, and is a court order issued in England, Wales, and Northern Ireland. In Scotland they are called County Court Summons.
CCJs are registered against a person when a financial institution makes a case for you owing them money on a credit agreement, loan, or financial product.
It is their way or trying to recover the money that you owe.
You will receive a letter with the details of the CCJ, and before that you will have incurred payment defaults, which means you are already in a poor credit situation.
Once the CCJ has been filed, it goes onto a public register and your credit file, both of which lenders can get access to when reviewing your mortgage application.
If you can pay the CCJ off within 30 days of receiving it, the CCJ will not be registered against your name and won’t be visible on your credit file for the next 6 years.
However, if you cannot pay up within 30 days, you can go onto a payment plan. In this case, the CCJ will remain on your file for 6 years, even if you pay and satisfy it at some point during that period.
But a satisfied CCJ is looked on much more favourably by many mortgage lenders, but it could still limit you to the specialist lenders.
Our advisers have access and knowledge of specialist mortgage lenders who are less strict with their loan criteria scoring, meaning you could still get a home loan.
To find out how our advisers can help you, contact us today for some initial free advice on how a CCJ from 2016 could impact your mortgage chances. They are specialists in helping people with bad credit get a mortgage.
Facts about CCJs
There are some common misconceptions about CCJs. We aim to answer a few of those below.
- CCJs are registered against an address, not a person – FALSE
- Ignore the CCJ, don’t pay it, and it will go away – FALSE
- If you move abroad the CCJ won’t affect you – FALSE
What to do next…
If you want to get a mortgage with a CCJ from 2016 then please contact our friendly and specialist team today. They will ask you a few simple questions to better understand your circumstances, offering an initial free consultation.
Call Specialist Mortgage Online today to arrange your initial free consultation so you can better understand what your mortgage chances and options could be.