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CCJs Mortgage - Finding the Best Deals for a CCJs Mortgage Problem (Track This Article)

The term CCJs mortgage has become a common one in recent years as lending becomes more diverse and sophisticated. These days it’s easy to get a CCJs mortgage; they are advertised on the television, in newspapers and online. But, while it might be easy to secure this type of borrowing, consumers need to be especially careful about the deal they end up with; after all, once you start paying for a CCJs mortgage, it’s too late to understand the potential pitfalls like steep interest rates and unforgiving mortgage tie-ins. That’s why seeking advice from an independent broker that specialises in loans like a CCJs mortgage – such as The Mortgage Broker Limited (TMBL) – should be your first port of call.

What is a CCJ?
The ‘CCJs’ part of a CCJs mortgage is an acronym for County Court Judgment. This is what happens when a creditor takes you to court in order to retrieve the money you owe. This could be from any credit agreement, from a mobile phone to a credit card. The CCJ will then sit on your credit file which is held, but not determined, by a credit reference agency such as Equifax, for a period of six years. This is the case even if you have repaid the debt – or ‘satisfied’ the CCJ.

How do I end up with a CCJs mortgage?
Standard mortgages do not allow borrowers to have CCJs on their credit files as they are deemed to be higher risk, but a CCJs mortgage will lend regardless. Unsurprisingly, you will pay for this privilege. In fact, depending on your particular circumstances, a CCJs mortgage can be double the cost of a standard deal. What’s more, as the borrower poses a higher risk in the eyes of the lender, a CCJs mortgage usually requires a larger deposit too. But perhaps one of the main downsides to a CCJs mortgage is that it can come with some hefty upfront fees and restrictive tie-ins.

Is a CCJ mortgage always a bad deal?
That said if you just have one or even two CCJs that do not amount to a lot of debt, a CCJs mortgage can be almost identical to a standard deal. And if your CCJ has been satisfied for some time, or perhaps occurred through no fault of your own, even some mainstream lenders will consider your application.

If I have to apply for a CJs mortgage, is it always my fault?
It is often the case that the only option left to consumers is a CCJs mortgage – but through no fault of their own. Life changing circumstances such as a divorce, illness in the family or the collapse of a business can often result in non-payment of debt and a CCJ can occur. And in some cases, such as an oversight, administrational error or change of address, borrowers are not even aware they have a CCJ and need to apply for a CCJs mortgage.

How can I get rid of a CCJs mortgage?
You will not have to stick with a CCJs mortgage for ever. Having demonstrated that you can repay the loan successfully for a period of up to three years, you will then be eligible for a cheaper mainstream deal that is accessible from the high street. That’s why borrowers should be very wary of a CCJs mortgage that comes with tie-ins of more than three years.

This and other numerous pitfalls of a CCJs mortgage are much better navigated with the helping hand of a mortgage broker like TMBL. After all, it could be that you won’t need a CCJs mortgage at all.

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