Getting a mortgage with CCJ: Here is what you need to know
A county court judgment, also known as CCJ, is issued by a court in England when the person has failed to pay money that they owe to a company. It is generally issued when a person starts to ignore the letters and late payment notices. Having a CCJ on your credit history can hurt you in several ways. If you want to get a mortgage, you will not be able to get it with a CCJ on your record. Most of the mortgage lenders avoid lending mortgages to people who have gotten a CCJ in the span of the past three years. If you have settled your CCJ by paying off the debts, then you would have a better chance to get one. Let’s have a look at the questions that arise in one mind while applying for a mortgage with CCJ
Is It Possible To Get A Mortgage With CCJ?
Getting a mortgage with CCJ is not impossible, but it can be quiet difficult. If you have paid your debts within 30 days of CCJ notice, then you can avoid the CCJ to appear on your credit history. However, if you have not paid the debts within that time duration getting a mortgage will become more complex for you. The bottom line is if you have a steady income and you are well settled and have paid your previous CCJ as well, then you will have a very good chance of getting a mortgage. But before you proceed with your application, you should contact a CCJ mortgage advisor so you can explore all your options.
What Role Does the Date of CCJ Play in Mortgage Application?
If the time duration of CCJ has passed the six years mark, then it will automatically disappear from your credit record. And as mentioned earlier, if your CCJ is less than three years old, then you will have a hard time in the market. But remember, in the end, it will depend on the provider and how he sees your application.
What Are My Chances If I Received ‘Judgment in Default’?
A judgment in default is issued by the court when the person fails to respond to the notice or appear in the court for the final judgment. In such a scenario, the court makes a judgment of its own and it will most likely be not in your favor. You can also face serious consequences like deductions from your pay. Getting a mortgage will be hard with this credit history, but even if you get one, you will have to pay pretty high-interest rates.
How to Build a Credit Score after CCJ?
Improving your credit score after CCJ may require some sacrifices on your part, but it is not as hard as you think. Just make sure that you are making your CCJ payments right on time. If you somehow miss one or have trouble coming up with the fee then getting in touch with your lender and discuss an alternative. Also, try avoiding taking more credit loans as it will only make your credit score worse.
Amy Rehan is a guest post manager at Globex Outreach. Her job is to ensure all guest post projects are completed on time and according to client’s requirements.