Bad Credit Mortgage Advice in Derby
What is a CCJ?
A CCJ, short for County Court Judgement, is a court order issued in the UK to residents who fail to pay back any owed payments.
Having one of these court orders associated with your name can actually have quite an adverse effect on your credit file, reducing your ability to take out any form of loan in the near future. Included in this, is a mortgage, possibly the biggest loan anyone will ever take out. If you have a CCJ preventing you from obtaining a mortgage, you will benefit from speaking to a specialist mortgage advisor in Derby.
Our hard working team have lots of experience within this area, dealing with CCJ mortgages on an almost regular basis. Feel free to speak with our dedicated team, who will be more than happy to lend their expertise to your case.
When applying for a mortgage with a CCJ tied to your name, your mortgage advisor in Derby will need to look at a few things with you. These include:
- How many CCJ’s are currently registered to your name.
- Are the CCJ’s settled or unsettled.
- How much your deposit is.
- The value of the CCJ.
- The date that the CCJ(‘s) was/were registered.
How do you get a County Court Judgement (CCJ)?
If you fail to keep up and ultimately miss any form of payment that is owed, you may find yourself with a County Court Judgement. This could occur from regularly missing a small loan payment such as a phone contract, to consecutively missing your mortgage payments. A CCJ can seriously harm your credit score.
When you are issued a CCJ, you will be given 30-days to pay off your debt. This is known as a satisfied CCJ. If you are able to meet this deadline and pay it off in time, the CCJ may be stripped from your credit file. That being said, if you fail to meet this payment, it will remain present on your credit record for a total of 6 years, known as an unsatisfied CCJ.
Can I still get a mortgage with a CCJ?
Concerns and complications aside, this can still happen! By having a reputable mortgage broker in Derby like ourselves working alongside you, it is not outside the realm of possibility to get a mortgage with a CCJ.
Providing you kept on top of your finances are were able to meet the 30-day deadline, the CCJ can be withdrawn from your records, which in turn would increase your chances of obtaining a mortgage. Failing to meet these payments within the given time frame will leave the CCJ linked to your name for 6 years.
If we’re dealing with a recently issued CCJ, getting accepted for a mortgage may be a little more difficult. This will often depend on how much of the payment that is owed has been paid off, and how much is still remaining. Also, the further away you are from the initial issue date, the more likely you are to be accepted for a mortgage.
We have a variety of unique specialist mortgage lenders on panel, each with their own specific lending criteria relating to CCJ’s and how much deposit you will need. It’s our job to know all of their lending criteria well, in order to recommend the most appropriate mortgage for your personal situation.
When you have a CCJ linked with your credit file, lenders will require more information from you regarding the CCJ. They will look for any underlying issues, like if you already owe money to another mortgage lender, as well as the effect your financial state could have on the property and how you well you can manage your overall finances.
It may be harder to get accepted for a mortgage with a CCJ, though with the help of a mortgage broker in Derby and a different approach, such as trying to improve your credit score, this may be possible.
Can I dispute a CCJ?
Though it may be difficult, by providing enough evidence, it may be possible to remove your CCJ from your records.
On the chance that you feel like something isn’t quite right and you have been given a CCJ by mistake, you can ask for the court to re-open the case against you. You will need to fill out an N244 form and send it to the court in order to appeal against your CCJ and save your credit file from further duress.
If the court agrees that the CCJ was wrongly issued, they will remove it from the register clearing it from your name. For this you will be given a certificate of cancellation, though you will have to pay for this yourself. Any costs involved are arguably worth it though, for the benefits reaped from undertaking such an action.
Does the date of my CCJ make much of a difference?
If a CCJ is left unsatisfied, it will still be removed from your credit file after the 6 year mark. As mentioned before, the further away you are from the CCJ issue date, the more likely it is that you’ll be accepted by a lender for a mortgage.
It is important to note though that if the debt has not been settled within the 6 years of you being issued the CCJ, your chances of being accepted are still slim. This means you can’t just wait out the 6 years and hope it will all work out.
The lenders confidence in you will increase the quicker that you pay off your debt. Remember though, that each lender is different and will look at a CCJ differently to another lender. In some cases, you may find that a lender will not even work with you at all. It’s reasons like this why it’s incredibly beneficial for you to approach a specialist mortgage lender in order to see what your options are.
How can I rebuild my credit score after receiving a CCJ?
In order for you to get your credit score back on track, you will definitely benefit from taking bad credit mortgage advice in Derby. You must keep up-to-date with your mortgage payments, current financial commitments and your CCJ over the course of this 6 years. Even if you’ve paid it off within the 30-day window, you should still be wary of your finances and be certain to make sure this absolutely never happens again. This is because having multiple CCJ’s to your name can hurt your credit score even further.
If you want more free mortgage guides, tips and tricks on how to improve your credit score in Derby, feel free to check out our guides or contact us now and speak with our amazing team of specialist mortgage advisors in Derby today.
Date Last Edited: December 6, 2023
