Having a county county judgment (CCJ) can seriously affect your chanced of being approved for mortgage. The amount of time that has passed since the CCJ was registered and settled is key to whether you will be able to obtain a mortgage.
The general rule for the mainstream (high street) lenders would be 6 years after the CCJ was registered before they will accept your application.
However, hope is not lost for those who have a more recent CCJ, there are lenders available within the adverse market that will consider application where the have been CCJ’s in the past, some will need none in the last 2 years whilst some only need it to be 3 months since the CCJ was registered.
In addition, some lender will ignore smaller defaults typically under £250 or £500.
Another important restriction is that currenlty you are likely to be limited to a maximum of 85% of the property value if you have a recent CCJ (within 2 years) over £250.
Like all mortgage applications the lender will assess any other previous credit issues and your ability to repay the mortgage when they make their assessment.
Overall, as long as it has been over 3 months since the last CCJ and you have a minimum of 15% equity remaining in the property having a CCJ will not stop you obtaining a mortgage on its own merit.
We are specialists in helping customers with CCJ’s, contact us today to see how we can help you secure your next mortgage – 01604 328 091!