Bad Credit Mortgage Help
 

CCJs Bad Credit Mortgages


Having a County Court Judgment issued against you will definitely stand in the way of getting a mortgage product on very good terms. But, if you make your research thoroughly, there is still a great deal of hope because some lenders are willing to offer flexible mortgage plans for people with CCJ.


Basically, the older your CCJ is, the better the chances of being approved for a mortgage loan. A bad credit rating plus a CCJ is not exactly a good point in the eye of a lender, but still, if you are determined to straighten things up, you can find a suitable mortgage offer. There are a few tips you should keep in mind before actually starting to look for the best available CCJ bad credit mortgage loans:


Ø  Treat the whole matter with utmost responsibility. Do not proceed if you feel you will not be able to make the required repayments. Remember that you already struggle with the nuisance of a bad credit report and a CCJ issued against you, so you need to think seriously about the matter.


Ø  Make a thorough research. You are considered a vulnerable client who is willing to accept almost any offer, given the fact that you have a bad credit rating and a county court judgment. Accept the offer which is within the most reasonable terms and conditions, and most importantly, what is affordable to you. There is no point in accepting a secured loan which you can repay only for the first two years, and then your home becoming subject to repossession.


Ø  CCJ is such a scaring word, but sometimes it takes no more then owing £100 in order to have a CCJ issued against you. So, lenders do actually take into account the gravity of the problem (how much you owe) and when this CCJ was issued, whenever coming up with loan offers for you. 


Ø  Always double-check your credit report. There might be a CCJ issued against you, and you don’t even know about its existence. The best thing to do is, before you search to apply for a mortgage, pay the outstanding debt, so that you can qualify with a cleared CCJ.


With a CCJ, you can be eligible for a mortgage on relatively better terms, if:


Ø  The amount you owe within the CCJ is not that high. The more you owe, the more skeptical your lender will become when it comes to the loan.


Ø  The CCJ was issued against you a long time ago. The “fresher” your County Court Judgment, the less probable you will get any loan with low interest rates


Ø  You can show proof a well managed financial tool (for example, you have a credit card which’s balance is paid on time every single month).


If you feel that you cannot manage on your own, meaning you don’t know which offer to accept, which to settle for, than it is time for professional help. You can get this by contacting a mortgage specialist for example, who will explain to you in detail each of the provisions mentioned in the offer. What seems a good offer through your eyes, the experience of a mortgage specialist might decide against it. Expect that you will be paying higher interest rates (between 3%-5% more than usual). Late payment fees are a very tricky aspect of a CCJ mortgage, as there will be high amounts set (exactly because given your “bad” financial past, you might skip some payments this time as well, so you will pay more). The problem is not that you will not find a mortgage product because you have a CCJ, but that you won’t be able to find a cheap mortgage loan. That is why, if possible, when starting to look for a mortgage try to do it with a clean credit record, because this is your only document which actually makes you eligible for contracting loans with good general terms and conditions like low interest, no redemption fees, higher LTV, and so on. For example, if you struggle with a CCJ, which’s amount actually does not exceed £250, then you might get eligible for a mortgage with Woolwich Mortgages, where they accept CCJs and bad credit. Or, you can try Nationwide, where the CCJ limit is again £250, and they offer some good mortgage deals as well.