Can I get a Mortgage with CCJ and how much deposit do I need to have to make it work.
The good news is having a county court judgement (ccj) does not necessarily preclude you from obtaining a Mortgage with CCJ but you will need to know you way around lending criteria. The mortgage underwriters will look at the detail of your ccj in the following ways:
- Individual and collective size (£) of ccj(s)
- Number of ccj(s)
- When it was registered
- Reason for the ccj
- When it was satisfied (if it has been satisfied at all)
The more extreme the combination the less chance of obtaining a mortgage. How so? Well 5 ccjs totalling £25,000 that were registered two weeks ago because you couldn’t be bothered to adhere to your financial obligations is a lethal cocktail, whereas a £350 ccj registered a few years ago due to a dispute (that can be evidenced) with the provider that was settled straightaway is not so bad. You get my point!
From a mortgage perspective the other main factor is how much you are putting into the purchase. The greater the deposit size the more reassured the Mortgage Lender will be as your resources will be on the line should you not pay and they have to repossess.
How much can I borrow on a mortgage with a ccj?
The table below gives you an insight into mortgage borrowing with a ccj but should serve as a ‘guideline’ only. Many of the Mortgage Lenders included in the table are not open directly to members of the public, but have limited access via mortgage professionals, such as Niche Advice.
OUR CCJ MORTGAGE PRICE GUARANTEE
At Niche Advice we guarantee not to charge for our advice on mortgages with ccjs until the mortgage has successfully been completed and you have the key to the door. That’s right no upfront payment.
Author: Payam Azadi
Payam Azadi is a partner at Niche Advice who are whole of the market Independent Mortgage Brokers. His role is very much focused on Property financing both on residential and commercial lines.