Bad credit can result in you being denied a mortgage. Modern mortgage brokers employ new criteria to evaluate each client and assess their current financial situation. This means that even if you have a bad credit history or CCJs, you can still qualify for a mortgage deal.
Here are six points to consider when applying for a ccj mortgage.
#1 What is the CCJ?
It can be very damaging to your name, especially when it is time to open bank accounts or apply for credit cards or mortgages. It stands for County Court Judgement (CCJ). You are subject to a court order for failure to pay agreed payments.
#2 Obtaining a mortgage with a CCJ
What if my CCJ is not on your credit report? You can still get a mortgage loan even if there is a CCJ in your credit report.
How recent the CCJ has been registered is one of the most important factors. The chances of success are higher if the CCJ was registered in the recent past.
A CCJ that has been marked as satisfied will give you a greater chance of winning. This is a declaration that you have resolved all outstanding charges and that the CCJ has been resolved. Some lenders prefer that you have settled the outstanding charges within 12 months. Others may be more flexible.
A significant factor in determining the financial value of a CCJ is its amount. Lenders will be less inclined to take on the risk if it is too high or excessive.
Multiple CCJs can create more problems. You will not be able to get a mortgage if you have a history of missed payments or late payments.
The age and type of CCJ can affect how large your deposit is. Your deposit percentage should be more familiar if your CCJ is older.
#3 What is the best way to find out if you have a CCJ.
You may have a CCJ on your name if you are having credit problems. If you don’t know about a CCJ, it could be that your address has changed and you didn’t receive notice. You can confirm this by looking at the Register of Judgements and Orders. For PS4, you can also perform a CCJ Check against your name.
#4 What’s my credit rating?
Your credit score is composed of many components. You may be a factor if you haven’t paid your bills on time or have not been on the electoral roll. As you are less likely to be a risk and more reliable, the higher your credit score will make you more attractive to potential lenders. Credit approvals are more likely to be denied if your credit rating is lower.
#5 How can you calculate your credit rating?
Free websites offer a quick way to get a rough idea of your credit rating. This will let you know what types of mortgages you are eligible for and is highly recommended before beginning any application process.
#6 Can I repair my credit score?
There are several steps you can do to improve your credit score. The key is to be more responsible with your finances by being disciplined and consistent. You will see a rise in your credit score by keeping up with your payments, paying your bills on schedule, and avoiding taking out loans or credit cards.
