How does a CCJ affect getting a mortgage?

Does the size of the CCJ affect my mortgage application?

Yes. Small amounts of £500 or perhaps £1,000 could have been a blip – on a phone contract or a storecard, for example. That’s less of an issue. Larger CCJs are harder for a lender to ignore and may require a very specialist lender or a higher deposit amount.

Our job is to try and get our clients access to borrowing as cheaply as they possibly can, given the circumstances. We’re going to look at it and make a decision together.

Can mortgage lenders still see CCJs after six years?

No – after six years, they’ll disappear from your credit file. Lenders can’t usually see them unless we’ve disclosed them directly.

Ideally, we’re going to be honest with them. If there’s been a CCJ, we check that file and take a forensic look at that before we place that with a lender.

How do I find out if I do have a CCJ?

We always advise people to check the various credit reports available on them. That includes Experian, Equifax and TransUnion. Those three cover the majority, if not all of the mortgage market in the UK.

You can also search the Register of Judgments, Orders and Fines, which has a £6 fee attached.

Do that prior to looking for a property – that takes all the pressure away. We want to find the lender first, then you can go property hunting once we’ve found a suitable product that works for you.

How can I improve my chances of getting a mortgage with a CCJ?

A lender views someone who has paid a CCJ off far more favourably. My first question would be whether you can pay off that CCJ prior to asking to borrow any money? That could pay really good dividends.

You could save a larger deposit. That will always help because it’s less risky for the lender. If you can keep your other accounts in really good order, that’s great – because obviously they’re looking at how you conduct yourself in debt, and by paying things back on time you build a positive credit history.

We want to show the lender that when you borrow their money, you will pay it back. That’s the picture we’re trying to build.

Avoid new credit applications – don’t go for that new car, watch or phone prior to or during the application process. Again, from a profiling point of view, the lender wants to be sure you will have the money to repay the mortgage on time.

You have demonstrated how a mortgage broker can help – is there anything else you’d like to add?

This is where a broker earns their crust. We do this on a daily basis and we know which lenders accept what. We know the lender’s language and how an application should go into them.

You can save yourself a lot of time and energy by letting us find a lender who will say yes. There’s also a credit situation there. Every time you do a credit-score, if we’re going to the wrong lenders directly, that can have an adverse effect as well.

All these elements make the job of a broker so vital when you need to move or refinance.
How we structure your application is the single most important part.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.