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Get a mortgage with a CCJ registered against you
If you have a CCJ registered against you and want a mortgage or a remortgage its important you understand what your options are and how the CCJ or CCJ's could impact on your mortgage application.
We have done some looking into this and thought we would share what we found, we were aware that 50% mortgages are available for people with bad credit but with the credit crunch and all the information in the media stating mortgages are almost impossible to get, we were pleasantly surprised to discover there are a number of 70% mortgages and 60% mortgages still available for people wanting to get a mortgage with CCJ, and that there are still a number of lender willing to lend and offer mortgages to people with CCJ's.
If your struggling with debt you may be interest in a debt management plan
What should I expect of a mortgage with CCJ's?
Mortgage products that allow a CCJ or CCJ's to be registered will normally be called adverse credit mortgages or bad credit mortgages, all they mean is they allow adverse credit to be registered on your credit file - they will undoubtedly have higher interest rates than your local high street bank, but then again your local bank wont offer you a mortgage with a CCJ. Although you can expect interest rates to be higher for mortgages with CCJ's we found they weren't extortionate, you could expect maybe a 1% increase in the interest rate and bearing in mind the current financial climate we didn't think that was too bad.
You should also expect the mortgage lender wanting slightly more information from you because of the CCJ registered against you, for instance if the CCJ was registered due to a loan prior to you applying for a debt management plan, they will probably want details of the original loan and the debt management plan.
Its very likely that in order to get a mortgage that allows a CCJ you will need to supply details of how the CCJ came about - the lender will want to know what happened to cause the CCJ but this shouldn't cause any problems as long as theirs a legitimate reason, saying you couldn't be bothered to pay the bill will probably not go down well! but a well structured explanation of what brought the CCJ about will help the mortgage lender understand your financial situation at that time.
Will I fail a mortgage credit score if I have a CCJ?
A mortgage lenders credit score will look at lots of different things and your credit file is just one of them. Obviously if you have a CCJ registered against you and want a mortgage, and the mortgage lender caters for borrowers with CCJ's then its fair to expect their credit scoring system to allow for bad credit. Thankfully they do, and even though they credit score it does not mean you will be refused a mortgage because of a CCJ, that's why CCJ mortgages and bad credit mortgages were created - there are also lenders that don't credit score at all, if you fail credit score with one lender you may be able to apply to another lender who doesn't credit score.
The key thing to remember when applying for a mortgage with CCJ's registered on your credit file is to be honest with your mortgage broker - if you have a CCJ registered against you its very likely you will need a mortgage broker. If the mortgage broker knows what they are doing they will understand how to go about getting you the best deal and ensure they approach every lender they can who allow borrowers to get a mortgage with a CCJ or multiple CCJ's.
You may also want to get your credit report - It may help for you to get your credit report. Your broker can look at this prior to contacting any mortgage lenders and should be able to narrow and refine their search based on the information on your credit report.
