A County Court Judgment (CCJ) is a court order that is issued when someone fails to pay a debt. CCJs can have a negative impact on your credit score, which can make it more difficult to get a mortgage. However, it is still possible to get a mortgage with a CCJ, depending on the circumstances.
What factors do lenders consider when assessing a mortgage application with a CCJ?
There are a number of factors that lenders will consider when assessing a mortgage application with a CCJ, including:
- The date the CCJ was issued: Lenders will generally view CCJs more favorably if they are older. This is because they will assume that you have since resolved your financial problems and are now a reliable borrower.
- The amount of the CCJ: Lenders will also consider the amount of the CCJ when assessing your application. A larger CCJ will be more of a red flag to lenders than a smaller one.
- The status of the CCJ: Lenders will want to know whether the CCJ has been satisfied or not. If the CCJ has been satisfied, this will be seen as a positive sign.
- Your other credit history: Lenders will also look at your overall credit history when assessing your application. If you have a good credit history apart from the CCJ, this will help your chances of getting a mortgage.
- Your income and outgoings: Lenders will also want to see that you can afford the repayments on the mortgage. They will look at your income and outgoings to assess your affordability.
Can I get a mortgage with multiple CCJs?
It is possible to get a mortgage with multiple CCJs, but it will be more difficult. Lenders will be more cautious if you have a number of CCJs on your credit file.
What type of mortgage can I get with a CCJ?
The type of mortgage you can get with a CCJ will depend on the lender and your individual circumstances. Some lenders may only offer you a high-interest mortgage, while others may be willing to offer you a more standard mortgage.
How can I improve my chances of getting a mortgage with a CCJ?
There are a number of things you can do to improve your chances of getting a mortgage with a CCJ, including:
- Pay off the CCJ as soon as possible: This will show lenders that you are serious about resolving your financial problems.
- Get your credit report and check for errors: It is important to make sure that your credit report is accurate. Any errors on your credit report could be affecting your chances of getting a mortgage.
- Improve your overall credit history: This could involve paying off other debts, managing your credit card spending carefully, and opening a credit builder account.
- Speak to a mortgage broker: A mortgage broker can help you find a lender who is willing to consider your application.
Conclusion
Getting a mortgage with a CCJ is possible, but it will be more difficult. However, if you have a good credit history apart from the CCJ and you can afford the repayments, you should still be able to find a lender who is willing to help you.
If you are considering getting a mortgage with a CCJ, it is important to speak to a mortgage broker who can help you understand your options and find the best lender for your circumstances.