At Avail Mortgage Brokers, we understand that people have financial setbacks, including facing a County Court Judgement. A County Court Judgement is a court order made against someone who is unable to repay money to debt collectors and creditors. This can make it difficult to uphold a mortgage; however, it is not impossible. At Avail Mortgage Brokers, our experts are always on hand to help with any queries or concerns you may have surrounding bad credit and the impact it has on your mortgage.
How Does A County Court Judgement Impact Your Mortgage Application?
In having a County Court Judgement attached to you,* you are sending alarm bells to mortgage lenders. They are inherently looking to provide mortgages to people who are low risk – chiefly, those that have proven that they are able to keep up with their payment plan. As such, a County Court Judgement against your name makes you a liability. This means lenders have less of an incentive to offer a mortgage, which is why the rates you will be offered will not be as competitive as they may be otherwise, nor are they easy to get. The amount you are able to borrow will also be impacted by this. This is why you need a qualified broker such as our team at Avail Mortgage Brokers who will be able to sit down with you and explore the options available to you.
The thing to remember is that, even if the payments have been made, once the court order is served to you, it becomes part of your credit file, which impacts the mortgages you will be able to apply for. If the payment has not been made, providing the County Court Judgement took place over two years ago, there is still a good chance of you getting the mortgage approved. If the CCJ took place under two years ago, approval is still possible but may potentially be more difficult.
The date of your County Court Judgement plays a big part in the mortgage approval process. If the County Court Judgement took place over six years ago, it will be struck from your credit file, which will make it easier for you to apply for a mortgage than someone whose court order took place two years ago, for example. With this being said, if the payment of your County Court Judgement was paid within 30 days, you can request it to be removed from your records.
Another thing to be aware of when it comes to applying for a mortgage is the amount of the repayment. Anything exceeding £2,500 will further complicate things; however, that does not mean all is lost. Your broker will be able to discuss the next steps with you and outline your options.
When you apply for a mortgage, the lender checks your financial history including late payments and your credit score. This is where having a bad credit mortgage comes in handy, so while having a County Court Judgement is not the ideal situation, there are suitable mortgages that are catered to adverse credit history out there that you can look into applying for. Let our mortgage brokers help you get back on your feet – give us a call on 0330 1118 0383.
Can I Get A Mortgage With A CCJ?
In short, yes – but it may take some time. With a County Court Judgement on your file, applying for a mortgage is a little more complicated than standard mortgages. Ass a result, the application requires an experienced broker who is able to look at your individual situation and provide you with the right solution to suit your unique needs.
To get a mortgage following a County Court Judgement, you need to do the following:
- Make sure you have met all the repayment requirements, and no payment has been missed. There is of course an expectation for these payments to be paid within the deadline as this will prove to the lenders you have the ability to make payments within an allotted time.
- Confirm your credit agreements are up to date.
- Have a clear credit history following the County Court Judgement – this will put you in good stead when it comes to looking for a mortgage.
- Confirm the type of mortgage you need – for example, is it for a residential property or are you looking to purchase a property to rent out, therefore, seeking a buy to let mortgage?
To be considered for a mortgage from a qualified lender following a County Court Judgement, you will first need to ensure all your ducks are in a row. This includes making note of the details of the court order such as its value (this will impact the loan to value (LTV)ratio – the lower the value, the lesser the impact it will have on the LTV) and the number of County Court Judgements you have on file – note that the majority of lenders will not accept more than two in the space of two years. Multiple County Court Judgements will have more of a negative impact on getting your mortgage approved.
As with all mortgages, you will have to undergo an affordability check,* which for someone with a County Court Judgement means it is highly likely you will be unable to borrow as much money as you would like.
You will need to provide proof of employment, including how long you have been working for your present employer. Ideally, you would have been working for them for a long period of time to show stability, otherwise, you may find the mortgage amount offered restricted. Be prepared to show paperwork, such as bank statements and payslips, to prove your current income.
This is also why it is important for you to confirm the value of your deposit – meaning the amount of the deposit you are able to put forward. The higher the deposit you are able to provide, the more likely you will be able to get your mortgage approved without much hassle. Your deposit amount may be taken as a sign of your financial stability, so the value you have readily available counts. If this is something you are worried about or would like to discuss in more detail, our experts will be able to sit down with you and discuss your options. There are schemes available, such as shared ownership, which allow you the flexibility to offer a small deposit.
Our team is willing to help anyone with bad credit seeking a mortgage, be it a County Court Judgement or bankruptcy; however, in order for us to do our best for you, we need complete honesty. Is this the first time you have had bad credit? Has this been a cycle over the past few years? These are questions potential lenders will be seeking the answers to so it is important for us to have this information as soon as possible in order for us to match you up with the most suitable solution.
If you are looking into remortgaging your property following a County Court Judgement, this is definitely still an option. . Your application will be viewed in the same way that a first-time mortgage is looked at, and we work with experienced lenders who will take your application into consideration. If you are looking to remortgage your property, our brokers will be able to guide you towards the lenders who will be able to assist you with your needs.
How Avail Mortgages Can Help
At Avail Mortgage Brokers, we have a team of advisors on hand to help you with any questions you have about applying for a mortgage, including concerns about applications that have been made more difficult due to bad credit history.
We value being transparent with all of our clients, which is why we keep you updated through every part of our process. We put your goals at the forefront of everything we do. We understand you are busy, which is why we work in conjunction with your schedule, ensuring a convenient time to speak to your mortgage adviser when best suits you.
Communication is at the heart of our relationship with our clients, which is why our advisors can be reached through an array of platforms including WhatsApp, email, text, and phone calls, depending on your preference. We have a high client retainer rate, which is the result of the trusted advice and products we offer. This, alongside our industry knowledge of over 35 years, has enabled us to generate genuine relationships with industry partners, which allows us to provide our customers with the most suitable guidance and mortgage deals.
Based in the heart of Yorkshire, we work across Leeds, York, Harrogate, Sheffield, Bradford, as well as nationwide. Have a question about your application for a mortgage? Our mortgage brokers provide help to all types of clients. Make an appointment with a member of our team today for a hassle-free approach to finding your mortgage match.
Get In Touch
For a hassle-free approach to bad credit mortgages that takes your financial circumstances into account and provides you with the best mortgage Lenders around, please contact Avail Mortgages today. Our mortgage brokers provide help for first time buyers, home movers and those looking to remortgage, as well as those in need of funds. Supporting clients around the UK including areas such as Leeds, York, Bradford, Harrogate, Sheffield and Huddersfield, our adverse credit mortgage brokers will do all they can to help, and provide you with the best possible live rates around. So, what are you waiting for?