I want to Re mortgage but have a CCJ showing on my credit report can I still raise capital against my home?
Remortgaging with CCJs can be problematic. There are three main ways to tackle the problem if you need to raise capital and they are all outlined below:
CCJ existing borrower rate
The first place you can try is your existing lender for a further advance. However, if your lender is a household ‘high street’ name then the likelihood of success will be small unless the CCJ is under £500 and satisfied for at least three years.
There are a handful of lenders that may consider your request for a CCJ remortgage. The new loan will be limited to 85% of the property value which may or may not be enough for your requirements. The money can be used for a variety of reasons including the repayment of existing CCJs. The lenders tend not to like business capital raising or to settle outstanding tax liabilities.
The size of additional borrowing on a CCJ remortgage may be capped by the lender but there are lenders who do not apply limit restrictions.
CCJ secured loan
CCJ secured loans are often more attractive than CCJ remortgages. How so? Well the rates on the CCJ remortgage are higher than ‘high street’ ones so depending on the size of your existing mortgage in relation to the additional borrowing required you might be better off taking a CCJ secured loan.
The lenders that lend on CCJ secured loans are less fussy about the reason for the additional money than they are on CCJ remortgages.
CCJ secured loans can in theory go up to 95% of the property value, but in my experience the lenders normally reject them over 85%. The amount of additional borrowing is capped around the £500,000 mark but as the rates are higher than conventional CCJ remortgages most applicants limit their borrowing to £200,000 or less.
For the full information on CCJ Remortgage products rates and fees please complete the enquiry form on the right-hand side of this page or alternatively call us on T: (020) 7993 2044.
Payam Azadi is a partner at Niche Advice Ltd who are Independent Financial and Mortgage Advisers in London.