This is an updated version of a previous post relevant for 2022. Much of this post will be along the lines of the Defaults post here. Although CCJs are looked generally a little more serious than Defaults.
Mortgage criteria and CCJs
When it comes to applying for a mortgage with one or more CCJs we have to look at a number of things. The first thing is whether or not we are looking at banks on the high street or not. If not we do have alternative options. These include building societies or specialist adverse lenders.
Getting a high street Mortgage with CCJs
When looking at high street mortgage lenders, we need to check what they are potentially open to and is within criteria. Most lenders will say something like “A maximum of 1 CCJ for a maximum of £500 in the last 3 years”. That does not mean if you have 1 CCJ for for £250 you will be accepted. It means if you have 2 CCJs for £100 each, you will be declined as you do not fit criteria.
If we work on the assumption your CCJs are within criteria, we also need to think about how likely you are to be accepted. If you have a CCJ registered within the last couple of months, you are less likely to be accepted than if it were 5 years old. As mortgage brokers that means we need to look at the overall picture of your application. We will look at the adverse but we will also look at the other important factors to determine a likely chance of acceptance. The adverse is a negative. But are there enough positives to overcome that? We are looking at things like:
- Where did your deposit come from? Saved will usually score better than gifted.
- Are you earning the bare minimum to get the mortgage you want or is there excess income?
- Do you have a 10% deposit or a 25%?
There is a lot that needs to be considered and it is not an exact science but over the years we get an idea of what is likely to pass or not. Although this does change over time so we may not get it right first time every time.
Specialist mortgage lenders with CCJs
This tends to be a little easier. Typically their criteria is set in stone. An example would be something like they will accept a maximum of 3 Defaults in the last 3 years. That usually means if you have 3 CCJs registered 6 months ago or 36 months ago, they all fit. If you have 2 CCJs registered last month and a 2 registered 4 years ago, that still fits as they are only concerned about the 2 more recent CCJs.
Typically these lenders charge higher interest rates and are harder work. That means it is better all round if we can get you a normal mortgage. But where that is not always possible we do have alternative options.
Mortgages with CCJs Success stories
We have not written about any recent success stories with CCJs in the last 12 months so we will update this in time. We do have some examples but we just need to get around to writing about them.
Overview
CCJs are quite similar to Defaults. The devil is in the detail. We can overcome CCJs, but the options and in turn rates available will be dependent on the number of CCJs, when they were registered and whether or not they are linked to other adverse credit. Unlike Defaults where it is not uncommon to either see one or a large number. CCJs are typically limited to one or 2.