Getting credit will always be difficult if you have a bad credit score. A county court judgment on your file will lose you points. But, this doesn’t mean you won’t get a mortgage. A specialist mortgage broker can help you to find a mortgage that suits you even with a CCJ on your credit file. Get a copy of your credit file and look for the following:
The Date of the Judgement
If the judgment is recent it doesn’t mean you won’t be offered a mortgage. But, you’ll probably have to find a larger deposit. The CCJ will stay on your file for 6 years. The older the CCJ the more choice you’ll have of lenders.
When it Was Paid
Some lenders will want to see that the debt has been settled. While others won’t place that much importance on a settlement. If a lender prefers a judgment that has been paid, they will also look at the date of payment. If it was paid off soon after the judgment it won’t be looked upon as seriously as one which was paid after a significant amount of time.
How Much Was Owed
Another consideration for a lender is the amount of the debt. If it was more than 3 years ago then the value might not matter so much. However, if it was recent (12 months or less) a lender might not consider you for a mortgage if the debt was more than £1,000. After two years the amount shouldn’t be more than £2,500.
Because you have a CCJ on your credit file, you will be considered a high risk. More so than a person with a good credit rating. If you are looking for a 95% mortgage, then you’re unlikely to get one if you have a CCJ up to 3 years old. However, if you have a larger deposit (around 25% or more) you can get a mortgage with a recent CCJ.
If You Have More Than One CCJ
If you have a good deposit of between 25% and 35% then the number of CCJ’s you have may be overlooked as long as they are more than a year old. Usually though, there is a limit to 2 CCJ’s within the last 24 months.
A mortgage broker can have a look at your file and advise you about the probability of getting a mortgage with a CCJ. They can also see if you have any other reasons for your poor credit rating, such as late credit card payments or a debt default.
A specialist bad credit mortgage broker will know which lenders to approach in order that you have the best chance of getting the mortgage you want, even with a CCJ.