Mortgages with CCJ and Arrears – What’s Possible?
Mortgages with CCJ and Arrears are still possible, as are remortgages with CCJ and Arrears despite the ‘credit crunch’. However it is fair more difficult to get the higher the loan to value mortgage, if you’ve got both ccj’s and arrears. This is specially the case if you have had any arrears in the last three months it is virtually impossible to source.
However things are so volatile in the financial markets, always give us a call at the Bad Credit Mortgage Centre to check the current situation – it literally changes on a daily basis!
Whenever a mortgage application is submitted to a lender, the mortgage lender will look at your credit record and assess how likely it is they will be getting the mortgage repaid by you.
Hence a County Court Judgement ( CCJ ) is evidence of a credit agreement that has broken down. Every CCJ will affect your credit rating and the more recent the date of the CCJ, the more relevance it will have on the outcome.
Evidence of numerous county court judgements will further reduce the number of lenders our brokers can source for you. Both the volume and the collective value of CCJ’s will determine the mortgage terms presented to you.
Mortgage lenders don’t get emotional about any application, it’s simple done on credit scoring. They’re not able to judge the rights or wrongs of any specific case.
To put it bluntly a County Court Judgement arises from the failure to pay a debt.
The creditor (the company or individual who is owed the money) asks the court to issue a county court claim form. This form will state the amount owed and the reason why it is owed.
The debtor (you) has 14 days to reply to this county court claim form. You must decide whether to pay the claim in full or alternatively contest the claim. Ignoring the form altogether will result in the judgement by default being applied. This could result in a judgment order demanding that the money in paid in full immediately.
Any of these scenarios could be exasperated if you had incurred any mortgage arrears in addition to the ccj’s. Any arrears in the last three months will mean it’s almost impossible to secure a mortgage offer, but remember thing change rapidly in the current market so always call us for the latest information.
Other than this, mortgage arrears greater than three months ago are acceptable to a select number of lenders with or without ccj’s. So you see mortgages with ccj’s and arrears are still possible but quite simply it depends on your specific circumstances at any given time.
Don’t despair just call for the latest news on how we may be able to help…
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