Home Mover with CCJs
Having a County Court Judgement (CCJ) on your credit file can get in the way of securing a mortgage. But in the last few years, there has been a noticeable increase in providers who are willing to relax their lending criteria and offer deals to customers with credit issues.
It’s also important to remember that, while having a CCJ isn’t ideal, it’s not the only factor that will affect your eligibility for a home loan.
Read on to learn more about the current market for CCJ mortgages, and discover why enlisting the help of one of our experienced mortgage brokers could improve your chances of getting a great deal even further.
Things to consider when moving between properties
A home mover is someone who already has a mortgaged or owned home and is moving into a new property. As a home mover, you can choose to ‘port’ your mortgage with your existing lender or apply for a mortgage with a different provider. Your mortgage broker will be able to advise you on the best option, based on your repayment history and the terms of your current agreement.
As a home mover, you are likely to have some general knowledge when it comes to finding the right mortgage and dealing with brokers. Whilst costs are important to you, you’re focusing on other factors for your move, such as achieving new lifestyle goals; upsizing to meet the demands of your growing family, or changing location due to work or family commitments.
You’re in a much stronger position than a first-time buyer because you have evidence of your ability to pay your mortgage repayments in full and on time, every month. This will put you in a favourable position when it comes to getting a good interest rate. You’re also likely to have built up some equity in your existing property, meaning you’ll be entering into a new agreement with a better loan-to-value (LTV) than before.
One of the most common problems that home movers experience is being stuck in a chain. This is the term used for a sequence of linked home purchases who are reliant on each other for the preceding and succeeding purchases; for example, those buying your house are reliant on you completing on your new home in order to move into your old one.
It’s important to stay in contact with your solicitor throughout the moving process to ensure everyone is kept up to date with potential move dates and any delays are communicated up and down the chain.
How will having CCJs affect your chances of getting a mortgage?
A County Court Judgement (CCJ) is issued when you fail to pay back the money that you owe. As you can imagine, this black mark against your credit file can have a hugely negative impact on your chances of successfully applying for a mortgage.
Many high street lenders will refuse to lend to people who have an open CCJ, or one that has occurred within the previous 3 years.
Whilst it can be more difficult to get a new mortgage with a recent CCJ on your credit file, there are still lenders who will accept you. Although CCJs are often a sign of other credit problems – and are rarely given in isolation – if you’re able to show evidence of a steady income and a clear credit history since the CCJ was issued, lenders are likely to look upon your application more favourably.
If you have a CCJ on your file, it’s important to work with a broker who has experience in working with mortgage providers who are open to supporting home movers in similar circumstances. They will be able to point you in the direction of appropriate lenders, and ensure you do not negatively impact your credit rating even further by applying for mortgages that you are likely to be declined for.
Why use a mortgage broker?
Don’t leave a successful mortgage application to chance. Speak with one of our mortgage advisers today for expert advice and free, no-obligation quotes from providers who are willing to take on customers with CCJs.
As a whole of market brokerage, we’re not limited to deals from certain providers. We can find and approach smaller and more niche companies with a record of lending to homeowners with adverse credit. And with more than 2,000 5-star reviews to our name, we can confidently say we’re one of the most customer-focused teams of advisers out there – something which makes a huge difference when we’re guiding you through such an important process and helping you make such a life-changing financial decision.
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