Whilst mortgage lenders will look at a vast range of criteria before determining whether a borrower is suitable, there are typically three issues that can stop a loan negotiation before it begins: a poor credit score, a bankruptcy/debt relief order or a county court judgement.
A county court judgement is a formal court ruling that a person owes money and is required by law to pay it. It appears on your credit record and can cause issues with getting a mortgage outside of a CCJ mortgage specialist that takes your particular circumstances into account.
With that said, CCJs can affect the mortgage process in several ways, so here is what you need to know about getting a mortgage with a CCJ.
Not All CCJs Are Alike
Unlike a bankruptcy or a debt relief order, which typically have the same disastrous effect on a person’s credit score for the six years they remain on a person’s credit history, not all CCJs have the same effect.
Typically, older CCJs are less likely to be a major factor, as are small ones, so a CCJ caused by a small debt will not necessarily preclude a person from getting a mortgage, so long as nothing else is flagged on a person’s record.
As well as this, lenders will look into the circumstances of a CCJ before passing judgement, with debts relating to property tending to affect potential borrowing more than credit cards or less relevant payments.
It Is Always Worth Paying The CCJ Quickly
If you can, it is always beneficial to your future borrowing power to pay off a CCJ quickly. If you pay it within 30 days, the CCJ itself may not appear on your credit rating at all (although the default that led to it will do).
Even after this 30-day deadline, having a CCJ marked as satisfied will reflect better and open up more avenues for getting the mortgage you want.
