CCJ Mortgages Guide
What is a CCJ?
A CCJ or County Court Judgment is a judgment issued by a county court when you fail to meet payments owed. This could be for various product or services such as mobile phone bills or a bank loan. In most circumstances the creditor will have already pursued the debt via debt collectors, but if they feel they are unable to reclaim the money owed they can go to court and obtain a CCJ against the you.
The courts will then set an affordable repayment amount based on your individual circumstances.
How long does it last?
Once a CCJ has been issued you are allowed one month to repay the amount owed in full. Should you fail to do so the CCJ will be added to the CCJ register where it will remain for six years. If it takes longer than six years to pay off the CCJ then the creditor can apply to have the CCJ re-added to the CCJ Register.
Will it affect my credit rating?
Yes, a CCJ will have a negative effect on your credit rating. Banks, mortgage providers and other potential lenders will nearly always do a CCJ check as part of the credit checking process. This information helps them decide whether or not to offer you credit facilities.
A CCJ tells a potential lender that you have previously not been able to meet your financial obligations and therefore makes you a higher lending risk. This may mean you are refused credit altogether, or that where credit is offered you may be subject to higher interest rates.
Can I get a mortgage if I have a CCJ?
Yes. Having a CCJ doesn’t necessarily mean your chances of obtaining a mortgage are lost. There are lenders in the market place who offer CCJ mortgages (also known as adverse credit mortgages or bad credit mortgages).