Country Court Judgement is said to be a significant factor when it comes to the mortgage loan. But it may happen that you have landed upon a critical situation when you need the funding on an immediate basis — maybe you are experiencing any disability or medical emergency, or you need the money for children’s education. So, what will be your financing possibilities now? This article focuses precisely on that.
Let’s get started with a clear insight on Country Court Judgement.
The definition and fatality of CCJ
A Country Court Judgement (CCJ) is issued in your name when you have failed to repay the past dues within the tenure and ignored all the other reasonable approaches of recovering the money like late payment notices, letters, defaults, etc.
Usually, CCJ reflects serious repercussions and may no longer subject you to mortgage loans till you have an open CCJ. Most mainstream creditors refuse to offer mortgage loans if a CCJ is visible on your credit file within the past six years.
Is it anyhow possible to get a mortgage loan with CCJ?
There’s a provision to exclude CCJ from your credit history if you can pay the outstanding debts within 30 days or dispute them successfully. However, the actions or defaults resulting from CCJ will still be on the report, but that won’t be an issue for a mortgage loan.
On the contrary, the problem will arise if you fail to repay within 30 days. Things will be tougher then. Another concern is that CCJ never comes in isolation — it accompanies several other credit problems. As a result, the more expensive and recent your CCJ is, the more the number of lenders will show unwillingness.
However, some options of CCJ loans will still be open to you. Only a few lenders will nod to your request if you can show that the CCJ has been successfully settled, a constant regular income, and a good credit record since the CCJ.
If you can research well on the internet, there’s the chance for you to find a mortgage broker who is willing to lend you the money despite a CCJ.
The effect of size and time of CCJ on a mortgage loan
Often, you may find it confusing whether the date and the size of your Country Court Judgement (CCJ) matter while applying for a mortgage loan. Well, it very much matters!
If CCJ has been issued against you six years back, it won’t be a part of your credit file. Even if it is more than three years old, securing a mortgage loan becomes easier in a circumstance like that. However, if the CCJ is less than that, it’s challenging to get a mortgage loan.
The date calculation of CCJ varies from lenders to lenders. While some look at the issued date, others focus on the date it has been settled.
Just like the time, the size of the CCJ also matters. However, the significance of the size is relatively lower than the time. A CCJ over £2,500 complicates the approval of the mortgage loan application. If the CCJ has been issued in the last 12 months, then the amount must be less than four figures. Larger than that can be a serious cause of mortgage loan rejection.
Although these factors are significant considerations, you can still secure CCJ loans from direct lenders in the UK. However, you have to do much research to find a trusted one among the very few names. Well, that means you still have the chance; only you need the patience!
The best way to rebuild your credit score
Having a CCJ on your credit file is not a great sign, of course. To maintain a clean file, make sure to meet all your payments on CCJ. In addition, take care of the other credit agreements and issues that arise along with CCJ.
If you have already received a CCJ, then first concentrate on clearing that up. In that period, it’s better not to opt in for new credit. Minimize your applications for the time.
Besides all these, you should also check your credit file to ensure the details are correct – your electoral roll, recent addresses, etc.
If you can maintain all these for a while, securing a mortgage loan won’t be that challenging!