County Court Judgment Mortgages: Frequently Asked Questions
Q:
Can I still get a mortgage if I have a CCJ against me?
A:
Almost certainly. As long as you have satisfied (paid) the CCJ,
you will find plenty of lenders who will be prepared to give
you a mortgage.
You
will probably need to go through an independent
mortgage broker to find a suitable mortgage, though –
high street lenders are not very sympathetic to people who have
had credit problems.
Q:
Will I have to pay a much higher interest rate?
A:
Your interest
rate will be a little higher, but not necessarily a lot.
The reason it will be higher is because people who have had
CCJs are considered to be slightly more risky to lend to than
people who have not.
By
keeping up with your mortgage repayments for three years, though,
you will be able to start to improve your credit rating and
become eligible for lower interest rate mortgages again!
Q:
Where can I find a lender who will give me a mortgage with a
CCJ?
A:
The best way to find a CCJ mortgage is to contact an independent
mortgage adviser. By being independent, they will have access
to the whole mortgage marketplace – including specialist
mortgages designed to provide a good deal to people with CCJs
and other debt problems.
Q:
Do my CCJs need to be satisfied before I can get a mortgage?
A:
There are a few circumstances where you can get a mortgage with
unsatisfied CCJs, but generally you should try to satisfy
all County Court Judgements before you apply for a
mortgage.
You
will certainly get much lower interest rates if your CCJs have
been satisfied. (Remember it takes a few weeks for your
credit record to be updated after you have satisfied a CCJ.)
Q:
Can I still get Fixed/Tracker/Discounted/100% mortgages if I
have CCJs?
A:
Yes. Having a CCJ is not the end of the world in mortgage terms,
and the right lenders will still give you a good choice of policies.
You should be able to choose:
Different types of interest rate deal
Different mortgage terms (how many years the mortgage is over)
What
percentage of your property's value you want to borrow
Q:
Can I get rid of my CCJs?
A:
CCJs stay on your credit record for six years, unless they are
found to be incorrect.
There
is nothing you can do to change this. Even when the CCJ is satisfied,
it will remain until the six years is up.
Q:
Will paying a mortgage help repair my credit record?
A:
Yes, most definitely. Reliably making payments on a mortgage
is a good way to gradually improve your credit rating, as it
demonstrates your reliability with a large loan.
If
you keep up with your mortgage payments, then once your CCJ
is removed after six years you should have a good credit rating
again.
