Can you remortgage with CCJ?

Can you remortgage with CCJ?

What is a CCJ?

A County Court Judgment (CCJ) is a legal judgment issued by a court following a claim brought against an individual by a creditor. It is usually issued as a last resort when other attempts to recover the debt have failed. A CCJ can negatively impact your credit rating and stay on your credit file for a period of six years, making it challenging to secure credit, including a mortgage.

Remortgaging with a CCJ

Remortgaging with a CCJ can be challenging, but it is not impossible. There are specialist lenders in the market who cater to individuals with adverse credit, including those with CCJs. These lenders understand that financial difficulties can happen to anyone and are willing to provide mortgages to individuals with a CCJ.

When remortgaging with a CCJ, it is important to consider the following factors:

Equity: Lenders are more likely to consider your application if you have a reasonable amount of equity in your property. The more equity you have, the lower the lender's risk, which may increase your chances of being approved for a remortgage.

Time since CCJ: The longer it has been since the CCJ was issued, the more likely lenders are to overlook it. If you have a CCJ that is approaching the six-year mark, it may be easier to remortgage as lenders consider it less relevant.

CCJ amount: The amount of the CCJ can also influence your chances of remortgaging. If the CCJ is small and has been paid off, lenders may be more lenient. However, if the CCJ is large and remains unpaid, it may deter lenders from approving your application.

Credit history: Lenders will examine your credit history as a whole, not just the presence of a CCJ. If you can demonstrate a pattern of responsible financial behavior, such as making regular payments and maintaining a good credit score, it may increase your chances of remortgaging.

Higher interest rates: It is important to note that if you are approved for a remortgage with a CCJ, you may be subjected to higher interest rates compared to individuals with a clean credit history. This is due to the higher risk associated with lending to individuals with adverse credit.

Professional advice: Seeking professional advice from a mortgage broker who specializes in helping individuals with adverse credit can greatly assist you in navigating the remortgaging process with a CCJ. They can help you identify suitable lenders and present your application in the best possible light.

Improving your creditworthiness:

If you are unable to remortgage with a CCJ at this time, there are steps you can take to improve your creditworthiness and increase your chances of future remortgaging:

1. Pay off outstanding debts: Clearing any outstanding debts, including the CCJ, can significantly improve your credit score.

2. Build a positive credit history: Make regular payments on time and avoid taking on excessive credit or new debts.

3. Register on the electoral roll: Being registered on the electoral roll provides lenders with additional verification of your identity.

4. Budget and manage your finances: Demonstrating responsible financial management can improve your creditworthiness over time.

Ultimately, while remortgaging with a CCJ can pose challenges, it is not impossible. By considering these factors, seeking professional advice, and taking steps to improve your creditworthiness, you can increase your chances of obtaining a remortgage even with a County Court Judgment.

Frequently Asked Questions

Yes, it is possible to remortgage with a CCJ (County Court Judgment), but it may be more challenging to find a lender willing to offer you a mortgage.

Yes, having a CCJ on your credit file is likely to affect the interest rate you can secure for your remortgage. Lenders may consider you to be a higher risk borrower and may offer you a higher interest rate as a result.

Typically, lenders prefer to see that a CCJ has been satisfied or paid off before considering a remortgage application. However, some specialist lenders may be more flexible and consider your application even if you still have an outstanding CCJ.

Having multiple CCJs can make it more difficult to remortgage, as lenders may view you as a higher risk borrower. However, specialist lenders who cater to individuals with adverse credit may be willing to consider your application. It is advisable to seek advice from a mortgage broker who can help you find the right lender for your circumstances.

Yes, there are specialist lenders who cater to individuals with CCJs or adverse credit. These lenders may be more flexible in their lending criteria and offer remortgage options that traditional high street lenders may not. It is recommended to seek the help of a mortgage broker who can guide you to these lenders and help you find suitable remortgage options.