Getting a mortgage in the UK isn’t always easy. If you have adverse credit issues such as CCJs, it may seem impossible. This is because high street banks will often turn away worthy customers simply because of credit issues that were either made in error or through a difficult time. Independent mortgage brokers that specialise in mortgages with bad credit may be able to secure you loans with no issues at all.
If you have a CCJ and require a mortgage in the UK, then we’ll explain what lenders look for when they assess your circumstances.
If your CCJ was registered over 6 years, then it’s likely you’ll be able to get a mortgage. This is only if you have no other credit issues. Even with other credit issues, a mortgage may still be possible, however you would need to speak to an expert for an accurate answer, as everybody’s situation varies. If your CCJ was recent, then it may be difficult to get a mortgage, but it still isn’t impossible. It’s likely you may be accepted, but only offered higher than average mortgage rates.
If you’ve satisfied your CCJ then you do open more doors in comparison to having unsatisfied CCJs on your credit report. This is important, as a broker will only approach lenders suited to your needs. For example, some lenders don’t accept applicants with unsatisfied CCJs at all, whereas other lenders do.
The amount of your CCJ will also play a big part in whether you’re accepted for a mortgage or not. Some lenders will have limits to who they can approve. For example, some lenders won’t lend if your CCJs total to over £1000, whereas other lenders may allow more. If your CCJs total to below £1000, then more lenders may be willing to give you a mortgage. This isn’t always the case, as remember, the timing of the CCJ also has a big impact. A large CCJ that was registered five years and is satisfied, may be less of an issue than a smaller and more recent CCJ that is unsatisfied.
The amount of deposit you have will also contribute to your overall assessment. The higher your deposit, the stronger your application becomes. This is because lenders are taking less risk and if you can’t pay your mortgage, it’s likely they’ll make little loss, if any.
If you’re applying for a buy to let mortgage, you may have greater flexibility. If you’re a first time buyer and haven’t got a history of mortgage repayment, then things can get difficult. Nonetheless, lenders will consider all of the above factors before making a decision. Lenders will also consider any other issues you may have on your credit report. If you only have CCJs then you’re in a much better position than an applicant with CCJs and other credit issues, such as defaults.
If you have CCJs and require a mortgage, then it’s advised to use a specialist mortgage advisor. This is because specialists will only submit your application to a lender that’s likely to say yes, based on your information. It’s highly unlikely that borrowers are aware of what criteria lenders have. Even novice mortgage brokers can struggle with knowing lender criteria at times. A specialist will understand which lenders are likely to say yes and will only submit your application to suitable lenders. If you do approach a lender yourself and they decline your application, then this will show on your credit report and will make it even more difficult to get a mortgage.
There are specialists in the UK such as Expert Mortgage Advisor. A mortgage information website that puts you in touch with suitable mortgage brokers. Each broker is a specialist and the best suited broker will handle your application from start to finish.
This article was written by Martin Alexander, a UK financial advisor and mortgage broker who often
writes for Expert Mortgage Advisor. You can visit the website for more financial advice and the latest mortgage information.