What To Do If You Have A CCJ
If you already have a CCJ on your record, all is not lost. There are still several things that can be done to minimise the impact of this judgment on your ongoing credit rating and mortgage opportunities.
Key Tips for Those with CCJs
If a CCJ has been received and you are in a position to pay the full amount, then this is an excellent way to improve your situation - immediately. Once the amount has been paid in full, you can request a Certificate of Satisfaction. Whilst the judgment will still remain on your record for six years, this certificate may offer a degree of comfort for likely lenders and should be used whenever a mortgage application is made.
One of the main reasons why mortgage providers are sceptical of people with CCJs is that it indicates to the lenders that they are unable to ensure that all payments are made, on a regular basis. This is not always the case and on many occasions CCJs are simply down to a one-off or short-term problem that has subsequently been resolved.
A great way of minimising the effect of your CCJ is to approach your own bank (even if it states that it does not provide mortgages for recipients of CCJs) and discuss your own personal situation with an advisor. Take along evidence of your current situation including an accurate income and expenses' statement which shows that you have fully considered your position. Your aim is to demonstrate that you are managing your finances and are confident that you can make mortgage payments, easily. Particularly, if you have a track record with the bank in question, you may find that the advisor is able to use a degree of discretion and offer you an interest rate that would not normally be available for those with CCJs.
It is also worth bearing in mind that credit has become an increasingly common issue. Currently, it is estimated that more than 9 million individuals have some form of adverse credit, be it a missed mortgage payment or a huge unpaid debt. With this in mind, it is important not to lose hope. Even those with very high debts are not in a hopeless position. Although obtaining a mortgage may not be the best or easiest thing to do, this does not mean that it is impossible.
If at all possible, clear your CCJ, immediately, and request a certificate of satisfaction that you can show to potential lenders;
create an accurate and realistic budget detailing your income and expenses and take this along to your current bank to discuss the best option, in your circumstances;
do not lose hope; with so many people currently suffering credit problems, there is increasing tolerance and ability by lenders to deal with seemingly difficult situations.