Mortgage with CCJs
Getting a mortgage with CCJs can be tough. Mainstream lenders may not consider your application if you have a CCJ on your credit file, however there are still options available to you.
How do I get a mortgage with CCJs?
As with most bad credit circumstances, you typically need a large deposit to get your application approved. With a large deposit, it means the amount you need to borrow is less, resulting in a lower LTV ratio. Therefore a lower LTV makes you a better prospect for a lender and more likely to get a better interest rate.
Due to the CCJ on your credit file, however, it’s likely you’ll only have access to higher interest rates than you would with a good credit history. This is because your interest rate is determined in line with the level of risk a lender perceives with your application. Therefore the greater the risk, the higher the interest rate.
Getting a mortgage with a CCJ
Specialist lenders will probably take a less definitive view of a CCJ and consider:
- Is the CCJ satisfied?
- How long ago the CCJ was
- The amount of money the CCJ was for
A CCJ stays on your credit file for 6 years, even if it is satisfied. You should check your credit file to make sure the information is accurate. It shows whether your CCJ is satisfied or not, which could help your application.