Parking fine CCJ and a Mortgage

Part of our job is to do “Continuing professional Development” or CPD for short. This can come in many forms, from tests and exams, webinars or from meeting up with account managers for a brew (which lets be honest is probably the best) although in reality it does need to be a combination.

A couple of weeks ago we met up with an account manager and she raised something I had not considered before but something she said they come across at times.

CCJs for parking fines. I am sure we have all read stories about over zealous parking companies fining people and this is where they (and other lenders) can maybe help you to overcome it and get a mortgage.

Mortgage lenders takes on CCJs

Its not uncommon to come across mortgage lenders who ignore CCJs under a certain value. This is the route I had always gone down with customers who had small CCJs. That goes for a parking fine or something else.

But this particular lender raised a good point. What happens if you have someone who for example started a new job and parked in the same spot every day for a week and received 5 fines? 5 potential CCJs, only adverse lenders would look at that… or would they?!

Our account manager raised the point that they ignore minor CCJs. Which CCJs arising from parking fines was raised as an example.

Typically you have 3 options when it comes to lenders:

  1. A lender who might be able to accept a CCJ under £100/250/500 (as in 1 single CCJ with a value cap and subject to a credit score).
  2. A lender who can accept one or more CCJs up to a maximum value. In this case it is either the number or CCJs or the value that can be the deal breaker. 1 CCJ for £1,000 might be declined but 4 for £250 each might be ok (or vice versa) depending on the lender.
  3. A specialist adverse lender who has no real cap other than they need to be 6 or 12 months old. The problem here is that it comes at a cost of higher rates and lower LTVs.

But now with this we have a 4th option with a lender who can offer reasonable rates and accept multiple defaults for parking fines regardless or the value or number.

Its really not uncommon to come across people who refused to pay a parking fine on principle. They may have had a parking ticket or they over ran by a couple of minutes. Or that they did not see a sign hidden away in the corner at size 4 font!

Summary

This is a great example of where CPD is important for brokers. Because of the market we specialise in (ie adverse), its not uncommon to meet people who have been told they are unable to get a mortgage – only for us to then get an offer.

I am always open to the fact we do not know everything and we can always learn something new. There are times (admittedly not often) I have told customers we are unable to help (note, I have not said they can not get a mortgage?). When I have checked in with them, they have been able to obtain a mortgage. I always try to find out who with and how they managed it and check in with the broker who arranged it if the customers do not mind. Its a great way to learn from others and helps us to help more customers down the line.

But in this case, I do not think it is a case of us not being able to help. We would have always found options. But now due to a lenders change in criteria & us sitting down and learning something new. We are potentially able to offer our clients something better when it comes to getting a mortgage with a parking fine or fines.