A county court judgement (CCJ) is given if you are unable to repay a debt, and while it may make future loans more difficult to get, it is not impossible to obtain a CCJ Mortgage.
Any bad note on your credit history might harm your chances of obtaining credit, whether it’s for a loan, a credit card, or a mortgage.
If you have previously received a county court judgement (CCJ), it will remain on your credit history for six years. Lenders determine how they will treat CCJs, whether they will lend to someone who has had one, and how much they will charge.
In this article, we’ll go over everything you need to know about mortgages with CCJs. This includes how a CCJ might affect a mortgage application, what type of mortgage is available if you have one, and how to remove a CCJ from your credit reports.
The Impact Of A CCJ On A Mortgage Application
A CCJ is a court order that orders you to repay the debt that you are having difficulty repaying. You have 30 days to react and can generally settle the debt in the form of a large amount or recurring instalments.
It serves as a red flag to potential lenders and can be used to deny a fresh mortgage application. If you do not pay the CCJ within the necessary 30 days, it will remain on your credit report for six years.
If you ignore the CCJ and refuse to reply to it, bailiffs may be allowed to enter your house and seize your belongings to satisfy the debt.
Lenders approach persons with CCJs differently, but most will not lend to someone who has an outstanding CCJ. Most usually, the CCJ must be paid and a specific length of time must have gone before a mortgage application is even considered.
How To Obtain A Mortgage If You Have A CCJ?
If you are unable to pay your CCJ within 30 days, your prospects of obtaining a mortgage while you are still paying off the debt are extremely poor. A CCJ is frequently associated with additional financial issues, and if this is the case, your prospects of obtaining a new mortgage will be even worse.
The size of the CCJ is also important, and some lenders will specify the maximum size in their requirements.
How To Apply For A Mortgage After A CCJ?
Once you’ve paid the CCJ and it’s been handled, you’ll be in a better position to get a new mortgage. However, time is of the essence here, as many lenders will not allow a mortgage application until several years have gone after the CCJ was discharged.
If you’ve paid the CCJ and can demonstrate that you have a steady income and aren’t falling into debt, you’ll have a better chance of securing a mortgage.
Is It Likely To Pay To Have A CCJ Uninvolved?
It is feasible to get a CCJ dismissed, and you should not have to pay to do so. You can request this from one of the three major credit reporting agencies, but it can only be deleted in particular circumstances. These are some examples:
• If you have paid the full sum asked in the CCJ within one month of its issuance.
• If it has been six years since you got it and it has not been automatically deleted from your credit file.
• If you were successful in disputing the CCJ.