Mortgage Advice in Hull for Customers with Bad Credit
What is a CCJ and how can it affect getting a mortgage in Hull?
A CCJ (County Court Judgement) is a court order that is issued if you are unable to make your monthly mortgage payments. If you receive a CCJ, you will have a 30-day window to pay it off, resulting in a “satisfied CCJ.” If you pay within this time frame, the CCJ may be removed from your credit file. However, if you are unable to pay, the CCJ will remain on your record for six years, known as an “unsatisfied CCJ”.
Having a CCJ on your record can have a negative impact on your credit file and reduce your chances of being approved for a mortgage. If you have a CCJ and are seeking a mortgage, we would advise speaking with one of our specialist mortgage advisors in Hull to find out what options you have. We will be open and honest with you at all times; we only want the best for you.
Can you get a mortgage in Hull with a CCJ?
Depending on your specific circumstances, it may or may not be possible to get a mortgage with a CCJ. With the help of a specialist mortgage broker in Hull like ourselves, you may be able to access the specialist deals that are only available to those with a CCJ. We have a large panel of lenders that we can access, with a small minority of those holding deals for applicants with CCJs. You will need a very large deposit to access these deals, however.
Remember that if you are able to pay off your CCJ within the 30-day deadline, it can be removed from your credit report, which increases your chances of being approved for a mortgage. Generally also, the longer the time elapsed from the issue date, the more likely you are to get a mortgage. For example, if you applied for a mortgage three years after being issued a CCJ, rather than one year after being issued with one, you should be more likely to be accepted.
When a mortgage lender sees a CCJ on your credit file, they will want to understand the reason for it. If you received a CCJ after failing to meet your payments for a financial commitment and have fallen into arrears, your mortgage lender may not believe that you have the ability to commit to another. When you apply for a mortgage with a CCJ, your mortgage advisor in Hull will consider several factors, such as:
- How many CCJ’s are currently in your name?
- What is the value of the CCJ?
- Is your CCJ settled or unsettled?
- How much saved deposit do you have?
- What dates were the CCJ’s registered?
Can I dispute a CCJ?
While it can be difficult, it is possible to have a CCJ removed from your credit file with sufficient evidence.
If you believe that the CCJ was issued in error, you have the option to request the court to reopen your case. However, this process comes with additional costs and may not be the best use of your resources compared to simply paying off the CCJ within the 30-day window.
Additionally, failing to attend your hearing can result in your case being rejected and incur additional court costs.
If your appeal is successful and the CCJ is removed from your credit file, it will be beneficial for your chances of obtaining a mortgage. On the other hand, there is also the possibility that your appeal may be rejected, resulting in lost funds and the need to still pay off the CCJ. You must carefully weigh the risks involved.
To appeal a CCJ, you must fill out an N244 form and submit it to the court. If the court agrees that the CCJ was wrongly imposed and reopens your case, they may remove the CCJ from your credit file.
How can I rebuild my credit score after receiving a CCJ?
There are steps you can take to improve your credit score after receiving a CCJ, and speaking with a specialist mortgage broker in Hull like us, can be extremely beneficial in achieving this goal.
If you have a CCJ, it is important to keep up to date with your monthly repayment commitments. This includes anything from credit cards to paying off your CCJ. Even if you were able to pay off the CCJ within the 30-day period, it’s important to be vigilant with your finances to prevent similar issues in the future. Multiple CCJs can significantly harm your credit score and even make it even more difficult to obtain a mortgage.
If you have a CCJ on your record and are interested in exploring mortgage options, schedule a free appointment with one of our specialist mortgage advisors in Hull today. They will review your case and provide personalised advice tailored to your circumstances.
Date Last Edited: 12/06/2023
