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Adverse Credit Mortgage with CCJs?
Don’t Despair – Finding A Mortgage Could Be Within Your Reach
If you dream of becoming a homeowner, worrying about your adverse credit history with a county court judgement (CCJ) could make you think you’ll have difficulty getting a mortgage. But don’t let that stop you.
There are lenders that specialise in adverse credit mortgages with CCJs who may be prepared to consider your application, even if your credit file is less than perfect.
An experienced Mortgage Broker has direct access to specialist adverse credit lenders. They will help you increase your chances of securing a mortgage, so you can turn your dream of buying a home into reality.
Use An Experienced ‘Adverse Credit’ Broker
The best way to access these specialist lenders is through an independent Mortgage Broker who is authorised and regulated by the financial conduct authority (FCA).
Choose one that is used to helping people with adverse credit apply for a mortgage. A well connected broker, or their appointed representative, will search the independent mortgage market to find a lender based on your individual financial situation.
As well as giving you expert mortgage advice, they will help you improve your credit rating, prepare your mortgage application for you, and submit it to a lender that accepts applications from people with CCJs on their credit record.
Whether you need a residential or Buy to Let mortgage, a good broker can help you get on the property ladder.
What Is Adverse Credit?
Most adults have a credit history, however if you’ve never taken out a credit card, personal loan or store card, you may have no credit history at all. If this is the case, a lender won’t be able to tell whether you’ll be reliable at keeping up repayments on your mortgage, or not.
Adverse credit will appear when you’ve borrowed money and not paid your monthly installments on time – or stopped paying altogether. This can show up on your credit record as a late payment, default, CCJ, Individual Voluntary Arrangements (IVA) or a payday loan.
Will Anyone Lend To Me With A CCJ On My Record?
You may find it harder to get a mortgage with a CCJ from a high street bank or a building society, so it’s best to speak to a mortgage adviser first because they know which lenders will accept mortgage applications from people with CCJs on their credit record.
An adverse credit lender will want to know how long the CCJ has been on your credit file, why you didn’t pay it, how much you owe, and when you expect to pay it back.
How Long Will A CCJ Stay On My File?
Unless you paid your CCJ within 30 days of receiving it, it will be entered onto your credit record at the Register of Judgements, Orders and Fines and stay there for six years.
Looking at this from a positive angle, you have time to work on improving your credit score.
If you think you have a CCJ but it isn’t on your credit file, go to Trust Online to find the date it was registered, the amount and court that issued it.
How Can I Improve My Credit File?
Discovering what’s on your credit record is the first step to finding out why your credit rating is low. There may be some mistakes, like paid or completed CCJs that haven’t been removed from your credit report.
Here are some things you can do to improve your credit rating and increase your chances of being accepted by a mortgage lender.
- Check your credit file using Experian, Equifax or TransUnion
- Correct any mistakes and pay any outstanding debt
- Register on the voter’s roll or correct it so your name and address match
- If you have no credit history at all, establish one by applying for a credit card, in 12 months’ time you’ll have a credit history
- Blots like CCJs disappear from your credit file after six years
- Use this time to improve your credit rating by paying your rent and utility bills on time
- Keep a check on your monthly outgoings and spend less if you can
- Save for your deposit, the more the better
- Contact a Mortgage Broker before you look for a lender
- Always tell the truth about your credit history
- A steady income will go in your favour
Adverse Credit Mortgages For First Time Buyers
If you’re a First Time Buyer, then an adverse credit mortgage with CCJs could be an option for you.
Even though you may have to put down a higher deposit and pay a higher interest rate, proving you can repay your mortgage will improve your overall credit profile.
By the time your fixed rate mortgage ends, you could remortgage your property at a lower interest rate.
A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME
Other types of mortgages are available such as Variable, Cashback, Capped, Collared & LIBOR.