Mortgage Help For Those Seeking An Adverse Credit Mortgage Quote To Best Suit Their Circumstances
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What Is A CCJ?
CCJ (County Court Judgments), are court order that have been issued by the County Court. They are used by creditors looking for redress on payments up to £15000 which they claim is owed to them; they are a quick way of resolving disputes legally. If you have had a County Court Order sent to you , take legal advice, and do not bury your head in the sand, as having a CCJ on your credit record is extremely detrimental when looking for a mortgage from any lending institution. Many high street banks will not offer an individual with a CCJ, a mortgage, as it is on your credit record there is no hiding the facts it will be seen when the lenders do a credit search.
How Does A CCJ Work?
A County Court Judgment is available to any person or company chasing a debt who wants to obtain a quick resolution to a debt matter. It usually occurs where there is a dispute or when an individual is unable to pay their creditor a certain amount of money that is due. This could be due to their inability to pay due to cash flow issues, or simply a refusal to pay for goods supplied or for services rendered because they were not up to a required standard. In a situation where money is owed a creditor will request the courts officials to issue a county claims form which is more commonly known as a summons. When this is delivered to the creditor, they have 28 days to reply with a defence or alternatively to pay the amount, (which will also have interest and court fees included), if the reply is not acceptable or indeed if there is no reply, a date is set for a hearing in which you will have to attend, the judge will then decide on the matter in dispute. which they will have to defend themselves, they can have one of two options, either they accept the debt and the court creates an orderly and affordable way for the debtor to pay them back without falling into hardship or the deny the debt entirely. In which case the debtor might instruct the court to issue a bailiff warrant. The decision made by the judge as well as the arrangements for payments by the court of law is called the County Court Judgment.
What Effects Does A CCJ Have when applying for a Mortgage?
The effects that CCJs have on a mortgage application is very negative, as the impression it will give, is that you can not manage your cash well. Most high street banks will not give you a mortgage knowing the situation that prevails. However if the CCJS are being paid with little default, certain Banks will offer you a mortgages but will classify you as a higher risk borrower and thus charge a higher interest rate. Do note that there are certain special mortgage companies which will give people with CCJs mortgages nonetheless, though this is good news one must bear in mind that the price of this is an interest rates higher than the high street banks. A CCJ is usually the final step between two parties in a dispute over a debt, the only way to avoid a CCJ is to try and resolve the matter before it reaches the law courts. Usually CCJs cost the creditors a considerable amount more than just the money, as a CCJ record on your credit record is viewed negatively, so you try to avoid it as much as possible. If you are aware that a county court judgment is pending, the best course of action is to examine your net income and arrange a method of payment with your creditor outside the court of law. This will put you on a stronger footing financially since it avoids the CCJ.
General Advice On CCJs?
To some individuals a CCJ is unavoidable, to people who have a otherwise perfect credit rating the CCJ, can be mitigated and the effect will be limited financial damage, in relation to the higher interest they will be paying, as some lenders classify the applicants into categories e.g., near prime , sub prime and indeed heavily primed. The important matter to always bear in mind is that by taking on debt at a higher interest rate , you are in certain situations more prone to fall into arrears which could result in your home being repossessed, so careful consideration needs to be taken when applying for a sub prime mortgage. A CCJ situation could be made easier by paying off the outstanding debt and requesting a certificate of satisfaction. This will give mortgage lenders with a bit of confidence when you are applying for the mortgage.
Bad Credit Mortgages Frequently Asked Questions
How do I check my credit report?
How do I restore my Credit Rating?
How do the banks view credit reports?
What happens if my bank turn me down?
When does a late payment become an arrear on my Credit Record?
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