A CCJ, or County Court Judgement is the action taken by your creditor following notice of a default. It is a type of court order in England, Wales and Northern Ireland that might be registered against you if you fail to repay money you owe your creditors.
Whether it’s recent or historical, when looking to mortgage with a CCJ on your credit file careful consideration should be taken. Knowing your affordability, having a good understanding of your credit reports and some expert advice is paramount.
High street lenders are less likely to approve you, but we’re seeing more lenders popping up within the adverse credit market than there have been in a number of years. However, having adverse credit puts you in a high-risk category meaning a more strict criteria is applied.
When looking at lenders, you should remember that there are many variables they will take into account when they look at a mortgage application and they are all different.
Any and all mortgage applications will be assessed on affordability and credit checks. With a CCJ on file potential lenders will assess your application based on a number of additional factors. The most important ones being:
- Registered date of the CCJ
- CCJ amount
They will also take into account:
- How much deposit you have
- Whether you have satisfied your CJJ
- Number of CCJ’s
- Any other credit issues
- Type of mortgage you are applying for
It is important to note that you may be restricted as to how much you are able to borrow. You may also find that rates may be less favourable. This is to do with the level of risk on the lender.
Specialist advice and preparation from an advisor is key in order to give you the best chance of getting an adverse credit mortgage approved first time round.