Specialist CCJ Mortgage Brokers
Unfortunately, if you have a CCJ, finding a suitable mortgage provider can prove extremely difficult. In many cases, banks will simply not consider someone with a CCJ regardless of the circumstances surrounding the judgment. This can mean that a borrower does not have the full opportunity to shop around and achieve a favourable interest rate.
High Street Lenders And CCJs
The vast majority of high street lenders will not consider someone for a mortgage who has a CCJ on their record therefore, in order to obtain a mortgage from these sources you will often have to wait six years, until the CCJ has cleared from your record.
When you think the CCJ is no longer on your record, request a credit report from an agency such as Experian (who currently charge £2) to make sure that the record has been updated, before you make your application.
In the meantime, it pays to build your credit rating in other ways, while you are waiting for your record to be cleared. For example, it may be possible to start saving for a deposit towards your property which will allow you a better rate, or to clear other debts such as credit cards which again will improve your rating. As soon as you realise that you have a CCJ that will affect your mortgage prospects, you should obtain a credit report so that you can also tackle any other possible rating weaknesses.
If the CCJ is the only negative issue on your record, then it may be worth presenting your case to your current high street bank, as they may be able to make a better judgment on your situation.
Specialist CCJ Mortgage Providers
Specialist providers offer mortgages to those who would not otherwise be able to obtain mortgages through a high street bank. By approaching a Specialist provider you are more likely to obtain the financing you need, even with a very poor credit rating. However, these companies almost invariably offer poorer interest rates compared with high street banks and many have particularly onerous terms such as extended tie-in periods.
If you are considering this route, an independent broker should prove invaluable as they can ensure that you secure the best possible deal for your position.
If you have a CCJ, high street banks may not be prepared to offer financing; but, it is worth discussing the situation with your main bank as they may be able to consider your banking history;
specialist lenders offer facilities to those with a poor credit rating but will invariably charge a higher interest rate;
use an independent broker to ensure that you obtain the best possible rate.