CCJs? We can help you get a mortgage.
What is a payment default?
A payment default can happen when payments to a loan or credit card are missed. When you take out a loan or credit card you sign an agreement that states that you will repay any borrowings under their terms and conditions. If you do not then you are defaulting on your loan. Your lender may serve you with a default notice. This notice will show the amount owed to the lender and date you broke the agreement and will remain on your credit file for six years. A default on a credit agreement will harm your credit score and is quite often enough to make a high street lender refuse your application for a mortgage or re mortgage.
If you fail to make any repayments after 3 months then you are classed as defaulting on the credit agreement. If you fall into arrears and default on your loan your lender may apply to the courts to have a CCJ listed against you. During this process the courts will work out a way for you to re pay your debts. Unfortunately CCJ’s will show up on your credit rating for up to six years, making it difficult to borrow money for a mortgage or loan.
How does a CCJ effect my credit rating?
When a future lender checks your credit rating they will be able to see that you have a CCJ listed against you. This will tell them that you have experinced debt problems in the past that have led to legal action. Very often this means a lender refusing you credit, making it difficult to borrow money for a loan or mortgage.
If you have cleared the amount owing in your CCJ you can apply to the court for a Certificate of Satisfaction (This will cost you £10). This will allow future lenders to see that you have satisfied the courts by clearing that particular debt. Your CCJ will still be on file for six years.
Credit reference agencies apply to the Registry Trust to find out information about CCJ’s or Decrees. This trust is non profit making and is registered in the UK. http://www.registry-trust.org.uk/
Even if you have a poor credit history we can help you. Mortgages can be hard to obtain if you have a bad credit history especially with CCJ’s. Most providers and consultants do not take into consideration the unique difficulties and circumstances that can cause a client to fall into arrears or acquire CCJ’s. If you have CCJ’s we can help you, we have an excellent track record when it comes to helping people with bad credit and uniquely understand that a poor credit history does not necessarily mean a bad debtor.
Can I get a mortgage with a CCJ?
A specialist mortgage lender may be able to help you find a mortgage that suits your specific circumstances. Even if you have payment defaults or CCJ’s listed against you on your credit file, there are lenders who are very willing to look at your credit rating and arrange a mortgage or re mortgage for you. The amount of interest you pay may be slightly higher than the regular high street lenders but this is due to the fact you are perceived as a higher risk borrower.
Remember to talk to a specialist mortgage adviser who will be sympathetic and understanding. By doing this you are well on the way to solving your bad debt situation and improving your credit rating.
How to apply for a mortgage or remortgage
If you wish to obtain a mortgage or remortgage with CCJ’s or defaults there are many loan options open to you. Talk to us to obtain a specialized mortgage for CCJ’s. If you do decide to go ahead with a refinancing solution then our advisers can help you through the application forms and every step of the way
Let your CCJ mortgage be the end of your debt problems.
