If you have a CCJ registered against you, you could be entirely forgiven for believing that you wouldn’t be accepted by a mortgage lender. After all, the credit crunch in 2008 (yes,11 whole years ago!) created anxiety amongst lenders and rendered those of us with anything less than a gleaming credit history nothing short of ‘unclean’.
The key thing to note is that 11 years have passed. We know that lenders will never revert to their position of the mid-nineties to noughties … but things are changing.
Here at Mortgage Search Go, we search the whole of the market when looking for the best mortgage deals for our customers. This means that we regularly talk to the well-known high street names, and the smaller, less apparent lenders. And because we’re doing this on a daily basis, we’ve seen how attitudes and offers from lenders have changed during the last 11 years. The good news is that for those who have a less than perfect credit history, there is hope.
Just last week we secured a mortgage for a client who has had a CCJ registered against them 3 years ago for several thousand pounds. Another with a smaller CCJ of a few hundred has just secured a mortgage with a major high street lender. Both clients are delighted!
There are no guarantees of course, but those that are in default, have missed a payment or two or have judgements against them should not instantly dismiss the possibility of obtaining a mortgage. It is, however, natural to expect lenders to require that we jump through a few more hoops to obtain an offer. So what hoops might these be?
The larger the CCJ, the larger the deposit
The larger deposit you have the better, particularly if you have a high value or multiple CCJs. A 25-30% deposit will enable more lenders to make an offer in principle in these circumstances.
The date of CCJ issue
The date of the CCJ and when (or if) it has been satisfied can be a qualifying factor too. If a CCJ was registered over 3 years ago (or 12 months with a larger deposit), a mortgage is a very real possibility.
Satisfied CCJs are not always necessary
Many lenders do not require a CCJ registered over two years ago to be satisfied. Those lenders that do require CCJs to be satisfied can vary. Some are happy for it to be satisfied just prior to lending, others require at least 12 months from the date the CCJ was satisfied.
Your other credit history and affordability
Any offer will be influenced by the rest of your credit history and also affordability. Lenders are more likely to restrict the level of borrowing to a lower level than they might if CCJs have been registered – but they WILL still lend!
Obtaining a mortgage, any mortgage, is not straight forward. There will always be criteria to meet and this is why whole-of-market brokers such as us here at Mortgage Search Go exist.
We will navigate the market for you and find the best deal for your situation. There are never any guarantees, but what we can guarantee is that if there is a deal out there for you, we will find it. We may not look exactly like James Bond, but regardless of your situation, when it comes to mortgages, we’ll encourage you to never say never again. Call us on 0844 69 333 60.
Your property may be at risk if you don’t keep up repayments on your mortgage.