Are you facing difficulties securing a mortgage due to a County Court Judgment (CCJ) on your credit record? At SZ Financial Services Ltd, the challenges this can present on the path to homeownership are well understood. This guide explores what a CCJ entails, the potential impact on mortgage applications, and how tailored mortgage solutions can help overcome these obstacles, making homeownership a reality.
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Understanding CCJs
A County Court Judgement, commonly known as a CCJ, is a legal verdict issued when you fail to repay specific debts. Creditors usually resort to a CCJ as a last measure after trying to contact you through calls, letters, and notices.
A CCJ isn’t a trivial matter, as it can impact various financial transactions, from opening a bank account to obtaining a credit card.It’s recorded on your credit history, affecting any future credit applications, including loans and mortgages.
The good news is, yes, it’s possible to secure a mortgage with a CCJ in your credit history. However, it’s essential to note that different lenders have varying criteria and may offer different terms based on your unique situation. Here are key factors lenders consider:
Number of Applicants: If you’re applying jointly, your partner’s credit history matters too. Some lenders may assess your partner’s credit profile even for a single applicant.
Other Credit Issues: Aside from a CCJ, lenders will also scrutinise other credit issues like credit card debt and missed payments.
Your Deposit: The size of your deposit plays a crucial role in securing a mortgage, especially with a CCJ.
Your Income: Your income is an important factor in determining mortgage eligibility.
Key Considerations When Getting a Mortgage with a CCJ
Besides the general eligibility and affordability criteria set by mortgage lenders, CCJs come with specific conditions:
Date of the CCJ: The recency of the CCJ is a critical factor. An older CCJ may have less impact than a recent one, but with expert guidance, even recent CCJs can be managed.
Date of Settlement: Some lenders may require the CCJ to be settled for a minimum duration, while others may not require settlement at all.
Size of the CCJ: The size of the CCJ matters, especially if it’s recent. Lenders have varying limits based on when the CCJ was issued.
Number of CCJs: While fewer CCJs are preferable, having more than one doesn’t necessarily disqualify you. A larger deposit can improve your chances.
Deposit Size: A larger deposit increases your likelihood of mortgage approval, even with a CCJ. Recent CCJs have less impact with a bigger deposit.
Satisfied vs. Unsatisfied CCJs: The status of your CCJ matters. Some lenders accept satisfied CCJs if paid before application, while unsatisfied ones can be more challenging to handle.
How do I know if I’ve got a CCJ?
Checking Your CCJ Status
If you suspect you have a CCJ on your record, it’s essential to confirm it. You can obtain a copy of your credit report from a UK credit reference agency or contact the Register of Judgements, Orders, and Fines for information. Knowing your financial situation is the first step towards securing your financial future. Use check my file – to get a quick scan of your credit report.
At SZ Financial Services Ltd, our focus is on supporting individuals with CCJs in navigating the complexities of mortgage applications. Get in touch today to begin your journey towards homeownership, even with a CCJ on your record.
Key Considerations When Getting a Mortgage with a CCJ
Besides the general eligibility and affordability criteria set by mortgage lenders, CCJs come with specific conditions:
Date of the CCJ: The recency of the CCJ is a critical factor. An older CCJ may have less impact than a recent one, but with expert guidance, even recent CCJs can be managed.
Date of Settlement: Some lenders may require the CCJ to be settled for a minimum duration, while others may not require settlement at all.
Size of the CCJ: The size of the CCJ matters, especially if it’s recent. Lenders have varying limits based on when the CCJ was issued.
Number of CCJs: While fewer CCJs are preferable, having more than one doesn’t necessarily disqualify you. A larger deposit can improve your chances.
Deposit Size: A larger deposit increases your likelihood of mortgage approval, even with a CCJ. Recent CCJs have less impact with a bigger deposit.
Satisfied vs. Unsatisfied CCJs: The status of your CCJ matters. Some lenders accept satisfied CCJs if paid before application, while unsatisfied ones can be more challenging to handle.
A personalised approach to your mortgage journey
With an SZ Financial Services Ltd adviser providing personalised support, the mortgage process becomes more manageable and less time-consuming. All aspects of securing the most competitive mortgage rates are handled efficiently, allowing time to focus on other priorities—whether preparing for a new home or benefiting from the financial advantages of a remortgage.
CCJ Mortgage FAQs
A CCJ will remain on your credit file for six years from the date it was served. It may remain on your file even if you pay off the CCJ. If you however have paid the CCJ in full within 30-days of it being issued, or have successfully disputed the CCJ in the first place, then you can request for the CCJ to be removed from your file.
Yes. Each lender may look at CCJs Yes. Each lender may look at CCJs differently, although more often than not they will consider how long ago the CCJ was issued, along with when or if it was settled.
A CCJ can be removed if the full debt amount is paid to the creditor within 30 days of the court issuing it. If you don’t, the CCJ will remain on your credit history for six years. If you believe a CCJ was issued in error, you will need to contact the claimant, ask them to acknowledge the mistake, and then contact the credit reference agency who has it on their records.
When you have not paid money back to a creditor and a court rules against you, you will be sent a judgement on how much you owe (including the debt plus legal or court fees), who you should pay (this will likely be the creditor or their representative), how you should pay, and when you need to pay by. If you have financial difficulties, you may be allowed to pay in installments.