Yes. You can get a mortgage with a County Court Judgment. You just have to know where to look…
If you have failed to pay a debt or a credit agreement then the person, or company who want their money can take you to Court. If the Court rule that you are responsible for the debt they will make a County Court Judgment against you.
Paid Off Judgment
If you pay off the debt within 30 days from the judgment it won’t be recorded on your credit file and you won’t need to declare it. If you can’t pay the debt off within that time it will go on your credit record. It then stays on file for 6 years.
When you apply for a mortgage a lender will ask to see your credit record. This is to assess how much of a risk it will be to loan you money. If you have a CCJ this obviously represents a bigger risk than someone without one.
A lender will also check to see that the debt has now been paid. The length of time that has passed between the judgment and your application will also make a difference. If, since the judgment you have no other issues with debt, this will be noted.
Use A Mortgage Broker
When you decide to apply for a mortgage with a CCJ, go to a broker. They have the contacts to find a lender who is willing to take a risk on someone with a CCJ. You might not get the best interest rate, but it is possible to get a mortgage.
Once a broker has found a deal you can put in an application. You’ll need to organise the following paperwork:
· Your payslips from the past 3 months
· P60 from your employer
· Documents to show any benefits you receive
· Proof of identity
· Proof of address
· Bank statements from between 3 and 6 months
If you are self-employed you will need to present:
· Tax return SA302
· Accounts from the last 2 or 3 years
· Bank statements to support your accounts
Some lenders will also want to know how much you spend on credit cards or loans, utility bills, insurance policies and other living costs.
Once the paperwork has been gathered together your mortgage broker will help you with the application form. Once your mortgage has been accepted, you will need to pay a fee to the broker. This will be either a fixed fee or a small percentage.