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Should I settle my CCJ before applying for a mortgage?

No impact on credit score

Pete Mugleston

Author: Pete Mugleston - Mortgage Advisor, MD

Updated: August 6, 2021

We received a question below from Tim who wanted to know when the best time was to apply for a mortgage; during or after his County Court Judgement (CCJ) was paid off. I answer his question below in detail.

Question

Hi Pete. I have a county court judgement (CCJ) that will be paid off in full in the next six months. I’ve been turned down for a mortgage because of my CCJ in the past and am wondering whether it’s worth reapplying in the near future or putting my plans on hold?

Should I delay things for another six months and apply when my CCJ has been settled, or are there mortgage lenders that will consider people who are currently paying off a CCJ?

Many thanks,

Tim, Manchester

Answer

Hi Tim,

Thanks for getting in touch. I’m more than happy to help.

First of all, there’s no need to delay your mortgage application but keep in mind that waiting until your CCJ has been paid off will mean that you have access to a wider selection of lenders, and therefore stand a better chance of ending up with favourable rates.

If you’re eager to push ahead with your application, there are specialist lenders out there who are willing to consider customers with unsatisfied CCJs. They have the flexibility to assess applications on a case-by-case basis, looking at their overall strength and taking factors like the amount left on the CCJ and the amount of deposit you have into account. Putting down extra deposit might even help you qualify for a better interest rate.

Given your circumstances, I would suggest speaking to an independent mortgage broker before you apply for your mortgage. They can help you find a specialist lender who considers applications with unsettled CCJs and can also minimise the risk of ending up with marks on your credit report.

You mentioned that you previously applied for a mortgage and were declined. Lodging too many applications in a short space of time can reflect negatively on your credit file, but using a broker will minimise the risk of being rejected a second time. They can place you with the right lender to handle an applicant with a CCJ against their name, boosting your chances of mortgage approval and securing favourable rates.

Thanks,

Pete

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About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

Read more about Pete

Pete Mugleston

Mortgage Advisor, MD

FCA disclaimer

*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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