Joint Mortgage with a CCJ

What if I have been declined for a joint mortgage with a CCJ in the past?

Again, it’s going to depend on when it was. If you applied five years ago and everything’s changed in terms of that CCJ, you should be OK.

We’d see what’s on the credit file and how long ago in the past it was. If it was sufficiently long ago and your credit file is now clean, being declined previously won’t necessarily impact your mortgage chances. The CCJ details would do that, rather than the fact you were declined in the past.

What if I’m a first-time buyer and have a CCJ? Can I still get a mortgage?

It shouldn’t have an effect. You could be a first-time buyer, a home mover or remortgaging to another lender. It’s the CCJ on your credit file that is going to be the problem.

Being a first-time buyer won’t prevent you from getting a mortgage. It just means we may have to go to a more adverse-type lender for your current situation. Again we just need a copy of your credit file to see who we can go with.

Will I need a larger deposit for a joint mortgage with a CCJ?

Possibly. It will depend what the CCJ was for, how much it was and when it was registered. Some adverse lenders don’t have products at 95% Loan to Value – they may only have a product at 90% or even 85%.

With more adverse credit, the lenders are limited and you may need to find a bit more deposit.

What documents will we need to have ready to apply for a joint mortgage with a CCJ?

The standard documents for an application would depend on whether you’re self-employed or employed. We need proof of income via payslips or tax returns if you’re self-employed, a few recent bank statements, passports, driving licences and proof of the deposit.

If there’s any gifted deposit, we’d need ID from the people giving you that money together with gifted deposit letters. That’s all standard stuff.

The only other thing to provide is a copy of your credit file. We can then see if any issues may cause an Agreement in Principle to decline. If we get a decline, we would look at who will accept those issues.

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

People can feel downhearted if they get knocked back on an Agreement in Principle. Using a mortgage broker will help immensely – you may not think you have any options, but there’s a very good chance we can find you a solution to get you the property you want.

There are many situations where an Agreement in Principle can be declined. We see this often, and when we find a solution our clients are so happy. A broker takes away all the pain and grief and saves you a lot of time in getting the result you want.

Just a couple of days ago we had a client with some bad credit issues and we’ve placed them with a fairly mainstream lender, which is really good. So don’t be disheartened if you have a CCJ. We’ll let you know whether we can help you.

If there’s no immediate solution, you may have to wait a while to get where you need to be – but our advice will help you prepare.

Key Takeaways:

• In a joint mortgage application, the bad credit of one applicant (like a CCJ) overrides the clean credit of the other, negatively impacting the application.
• The effect of a County Court Judgment (CCJ) is independent of employment status (self-employed or employed) and buying status (first-time buyer, home mover, or remortgaging).
• Mortgage applicants with a CCJ must disclose it to their broker and provide a copy of their credit file to allow for an assessment of its severity, amount, and registration date.
• While lenders are not sentimental about the cause of the CCJ, specific adverse lenders exist who may have a slightly more lenient approach, depending on the severity of the issue.
• Having adverse credit may limit the available lenders, potentially requiring a larger deposit from the applicants, as some products may only be offered at 90% or 85% Loan to Value.

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