Settled CCJ Mortgage

How much deposit do I need for a mortgage if I have a settled CCJ?

Again, it will depend on the size of the CCJ and when it was registered. If it was registered and satisfied three years ago, you might be fine with a mainstream lender with as little as a 5% deposit.

If you have to go to a more adverse lender, they tend to need a minimum of 10% – and some require 15%. The lenders for severe adverse credit may only lend up to 75% Loan to Value, so you’d need a 25% deposit.

It’s all a case of speaking to a broker – let’s have a look and see what you’ve got.

How much can you borrow for a mortgage with a settled CCJ?

It will come down to when it was registered, if it’s been satisfied and how much it was for.

If you have to go with a more adverse-friendly lender, they might not give you the higher income multiples – but some still give good-sized loans based on your income.

Can I get a settled CCJ removed to improve a mortgage application?

You can only get issues removed from your file if it’s there by mistake. People often tell me a credit issue wasn’t their fault – but if you have failed to pay something, it won’t be removed from your file.

Mainly a CCJ can be removed if it’s due to an error by whoever’s put the CCJ in place. If the company admits that mistake, you can ask them to have it removed from your credit file. This is typically done by a notice of correction.

But if something on your record is down to you not paying, or not updating an address, it will stay on your record for six years. Typically, after three years it shouldn’t cause you too many issues, especially if it’s been settled.

Which mortgage lenders accept settled CCJs?

It will vary depending on when the CCJ happened, how much it was for and whether it was settled.

It’s the registration date that’s the most important thing. Even an unsatisfied CCJ that’s over three years old could still go through with some lenders, depending on the size. Plenty do accept CCJs. It just depends on the nature of it.

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

Depending on the severity of the CCJ, it may just be a question of time. If you’re not prepared to go to an adverse lender because you want potentially better rates, you may just have to wait for the settled period or registration period to be where you need it to be.

The best thing to improve your chances of a mortgage is to speak to a mortgage broker.

You’ve demonstrated how a mortgage broker can help – any final thoughts?

Speaking to a mortgage advisor saves you time. You could spend ages trawling the internet, doing Agreements in Principles and chasing around. We’ve got the experience and direct access to lenders for any application.

If a client has a CCJ and there’s a small chance of it going through with a mainstream lender, we try an Agreement in Principle. If it isn’t approved, we look for the next option.

Ultimately, a broker’s there to get you the deal to suit your situation.

Key Takeaways:

• The ability to secure a mortgage with a settled CCJ largely depends on its registration date, size, and whether it has been satisfied.
• If a CCJ was registered and satisfied over three years ago, it’s possible to get a mortgage with a mainstream lender and a deposit as low as 5%.
• Lenders perform their own internal scoring, and if a mainstream lender declines, a mortgage broker can approach adverse credit lenders, who usually require a minimum deposit of 10% to 25%.
• CCJs can only be removed from your credit file if they were registered due to an error by the company that put them in place.
• The best way to improve your chances and save time is to speak to a mortgage broker, who can find the most suitable option for your individual situation.
  
  

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