Can I Get a Mortgage After a CCJ?
If you have a County Court Judgement (CCJ) on your credit file, you could be forgiven for thinking that there’s little to no chance of getting a mortgage approved. In fact, via traditional lending routes, you’re more than likely right, as that kind of black mark against your name is normally fatal to an application made to a high street mortgage company.
However, there is another avenue to pursue before you give up on the idea of your dream home and it’s one that focuses on affordability, not status.
There’s no denying that having CCJs can be real a problem when applying, but if you can prove affordability to one of the niche mortgage companies that have a vested interest in offering products to people in just that kind of position, you could be accepted.
As the specialist mortgage market continues to grow, there are a growing group of lenders that look at a person’s entire financial picture, rather than dwell on a person’s past indiscretions. At Niche Mortgage advice, we have partnered with a carefully selected panel of mortgage brokers, who not only have access to the aforementioned specialist lenders, but also access to a deals you’re just not going to find on the high street.
You’ll Still Have to Meet Criteria
We don’t want to give you the impression the mortgage lenders are just going to ignore the fact that you’ve had CCJs in the past and offer you a mortgage willy nilly. What we’re trying to tell you is that your CCJ isn’t necessarily going to be the reason why you fail in your application.
For instance, the income and expenditure details you give as part of the application process is going to go a long way to determining your success. That and a lot a whole range of criteria will be taken into account before the final decision is made.
Obviously, if you have a sizeable deposit to put down, it’s going to improve your chances, but ultimately you’re going to pass or fail based on your affordability, not dismissed out of hand because of your CCJ.
Other Key Factors
The term CCJ can cover a whole host of different scenarios, so there are other factors that are considered by specialist lenders:
- How recently your CCJ was registered
- How much the CCJ was for
- How much deposit you have to put down
- How many CCJs you have (Unlike IVAs and Bankruptcy arrangements you can have more than one)
- Whether the CCJ is satisfied or not (although this is not a deal breaker)
- The type of mortgage you’re applying for (more applicable if you’re a first time buyer)
- Whether you have other credit issues
Whilst all of the above elements will play their part, the date of your CCJ registration is probably the most crucial aspect, as the longer ago it was, the better your chances are.
When it comes to the deposit side of things, you’ll typically need to have around 15 to 20% of the total purchase price. The larger your deposit, the more likely it is that specialist lenders are likely to be more flexible on how long you’ve had your CCJ.