Remortgage with a CCJ
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Remortgage with a CCJ
Jim Overall explains how remortgaging works if you have a County Court Judgment (CCJ).
Can you remortgage with a CCJ? Will many lenders offer a remortgage to someone with a CCJ?
Yes, you can remortgage with a CCJ, but it will depend on quite a few factors. These include how much the CCJ was originally for and when it was registered.
Some lenders can ignore them after three years if they’ve been paid off, while others take a different view. Certain mortgage providers can accept with a bit more adverse credit than the mainstream banks.
Can mortgage lenders see a CCJ after six years?
Officially, after six years, it comes off your file and is no longer enforceable by whoever initially put the CCJ in place. We always treat bad credit on an individual basis – so we’ll have a look at your credit file.
If it’s not on your file, the CCJ shouldn’t have an impact on what you’re looking to do. Six years is a good time to consider a remortgage if you previously had a CCJ that’s been holding you back.
Can I remortgage with a satisfied CCJ?
Satisfied is good. It will depend a lot on when it was satisfied. For example, if you had a CCJ registered two years ago and you’ve just satisfied it, certain lenders would look at that for you. Other lenders may just say no, because of when the CCJ was satisfied.
It’s a lot to do with when the CCJ was originally registered. If it’s satisfied, more lenders can potentially look at it, but others won’t. The best thing is to speak to a broker and we can help you explore what’s possible.
How long does it take to remortgage with a CCJ?
It takes a certain amount of time to remortgage – and whether you’ve got a CCJ or not is irrelevant. It’s more about trying to find a lender to suit you.
It’s just a standard remortgage process once you qualify for a product with the CCJ in the background. The CCJ won’t hold it up to any degree.
Does the date of my CCJ matter for a remortgage?
If it was registered over three years ago, some lenders are okay, depending on the size of the CCJ. It’s difficult to come up with specifics, but for example, if the CCJ was under £300 and registered over three years ago, some lenders can ignore it. They do prefer it to be satisfied.
Some people don’t pay their CCJs because they’re in dispute. They might be adamant that the debt wasn’t their fault – but sometimes it’s best to just pay it and argue afterwards, because for the sake of £300, you could be losing out on a much better rate.
Having said that, three years is a good time to have passed since the CCJ was registered. It doesn’t necessarily matter when it was cleared – registration is the important thing.
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Does the size of the CCJ affect a remortgage?
Yes. The lower the CCJ, the more options you’re going to have. If it’s over £2,000, for example, that may be too high for some lenders even if you’ve satisfied it. They may want it to have been completely gone for three years, or satisfied for three years. The size definitely will affect which lenders you go for.
Will I have to pay any fees or penalties when remortgaging if I have a CCJ?
No. It will just affect which lender you go to. If you have to go to a more adverse lender, the rate isn’t going to be as good as with mainstream lenders.
Although there are no specific fees or costs necessarily, you will potentially be paying a higher rate if you have to go to an adverse lender.
Can I remortgage if I’m self-employed and have a CCJ?
The self-employed part of it is irrelevant. It’s the CCJ that’s important. If you qualify because of the CCJ being satisfied or registered over three years ago, being employed or self-employed won’t have any effect.
What happens if I’m declined a remortgage with a CCJ?
With a remortgage, we might find a lender that seems to fit and then do an Agreement in Principle. These usually leave soft footprints on your file – or they might not even leave a mark at all.
So it’s not the end of the world if it declines. We can just move on and find the next lender who can look at your case.
What else do we need to know about getting a remortgage with a CCJ?
It’s a complicated process when there’s a CCJ in the background. It’s not black and white and some lenders may be more lenient than others. The reason to use a broker is that by looking at your credit file we would know which lenders will or won’t accept you.
A broker takes away a lot of the guesswork – because if you don’t know which lenders to go with, you could just blindly make application after application. Instead, we’ll guide you through it and get you the right mortgage for your circumstances.
Key Takeaways:
- Remortgaging with a County Court Judgment (CCJ) is possible, but it depends on factors like the amount, and when it was registered and satisfied.
- A CCJ typically comes off your credit file after six years, which is a good time to consider a remortgage as it shouldn’t impact your application.
- The date a CCJ was registered is often more important than when it was satisfied; some lenders can ignore smaller CCJs (e.g., under £300) registered over three years ago, especially if satisfied.
- The size of the CCJ matters, with lower amounts offering more lender options. Amounts over £2,000 may be too high for some lenders.
- Using a mortgage broker is highly recommended because they can look at your credit file, guide you to lenders most likely to accept your case, and help you secure the right mortgage rate despite the CCJ.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.
YOU MAY HAVE TO PAY AN EARLY REPAYMENT CHARGE TO YOUR EXISTING LENDER IF YOU REMORTGAGE.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.