Refinance with a CCJ? Court court judgements are preventing me swapping my mortgage
Things can get very tricky when you’re looking to Refinance with a CCJ. County Court Judgements (CCJs) can put Mortgage Lenders off particularly if they have been registered recently. Don’t get me wrong there are remortgage options but these quickly diminish if the CCJ is very high or if there are a number of them.
In fact the remortgage rules can get complex, for example, a lender might say:
- £2,500 CCJs in total
- None registered in the last 3 months.
- No more than £1,000 in months 3 to 18.
- Individual CCJs should be no more than £1,000.
- Ignore CCJs for £100 or less.
- Ignore CCJs satisfied 12 months.
- Ignore CCJs registered 36 months ago satisfied or not.
- Repeat CCJ offenders may not qualify.
The caveat list can be exhaustive. The remortgage labyrinth should however be explored as it could be the best option and enlisting the services of a Mortgage Professional, such as Niche Advice, is well advised, however there is an alternative route; and that’s a second mortgage.
The second mortgage criteria otherwise known as secured loans can be as simple as:
- Any number or amount of CCJs registered 12 months ago are ignored.
It’s clear, simple and defined.
The added benefit of a second mortgage is the premium rate for your credit problems will only apply to the additional amount you wish to borrow. Your first charge can still untouched.
For example: if your credit problems happened after the first charge mortgage was originally taken out a remortgage may be detrimental as the whole balance will attract a premium rate. This is of course a generalisation and all individual cases would need to be assessed on their merits.
If your looking to Refinance with a CCJ my advice would be source a Mortgage Broker that has access to remortgage and second charge products (not all have dual-licences), and ask them for a quote on both so you can make an informed decision.
Niche can arrange first and second charge mortgages for applicants looking to refinance with a CCJ. So if you are looking to raise money with a ccj why not complete the Contact form on our website or call T: 020 7993 2044.
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.