Getting a Mortgage with CCJs and Defaults

When you owe money to a company or default on a loan, your creditor can apply to the County Court for a judgement to reclaim the money you owe. The court will decide whether there really is a debt to pay. If there is, they will issue a county Court Judgement (CCJ) which sets out how the debt should be repaid.

Defaults or CCJs on a credit file are one of the most common reasons why a mortgage applications are declined, particularly on the high street where lenders generally only grant mortgages to applicants with a clean credit rating. However, getting a mortgage with defaults or CCJs is still possible, as long as you work with a specialist lender or advisor.

How can you find a mortgage with CCJs?

There are a number of specialist lenders that approve mortgages with CCJs. The market for adverse credit lending has grown in the past couple of years, and in 2015 there is more choice than ever. However, this doesn’t mean it’ll be easy to get approved. There is still plenty of work to do to try to improve your credit rating as much as you can, and it’s also highly recommended you work with a specialist adverse credit advisor who knows how to get your application accepted.

The first step towards finding a mortgage with defaults is to check your credit rating to make sure all the information on your file is accurate. An advisor will only be able to provide the help you need if they know exactly what they’re dealing with.

What deals are available?

Despite the presence of defaults or CCJs on your credit record, you may well be surprised by just how competitive the current crop of mortgage deals actually are. The Help to Buy Scheme makes it possible to lend up to 95 percent loan-to-value, even with defaults on your file. This presents an excellent opportunity to buy a property, even with adverse credit and a small deposit. However, those with recent or more severe defaults may have to raise a greater deposit.

Mortgages with satisfied CCJs

Repaying your debts will certainly improve your credit score, which in theory should make it easier to find a mortgages with satisfied CCJs. However, satisfying the CCJ is not always essential to access a mortgage, as many lenders do not actually run a credit scoring system.

Generally speaking it will be easier to be obtain a mortgage with satisfied CCJs and settled defaults. This is because lenders who do run a credit score will grade your application as a lesser ‘tier’ of risk.

Does the type of default make a difference?

In a word – yes. If you default on a mobile phone payment, that will be taken by some lenders with a pinch of salt. On the other hand, if you have mortgage defaults or defaults on a secured loan on your credit record, this is something mortgage lenders will view much more seriously.

How can we help?

Whether you’re looking for mortgages with CCJs and defaults, or satisfied CCJs, we can help. Our advisors have considerable experience as specialists in adverse credit mortgage lending, and know precisely which lender to turn to find the best deal that meets the particular circumstances of prospective borrowers.

For a free, no-obligation initial consultation with a specialist mortgage advisor, please complete our enquiry form with some details about your situation. One of mortgage advisors will be in touch shortly.

Shared Ownership & Bad Credit Mortgages

Shared ownership schemes have been introduced by the government as a way to give more people the opportunity to own their own home. The scheme is provided through housing associations and allows you buy a 25% to 75% share of your home, while paying rent on the rest of the property.

You should also be a first-time buyer or an ex-homeowner but unable to afford to buy a property outright. You should also be renting a council or housing association property to qualify.

If all of these criteria apply to you, the next step is to find a mortgage. The good news is that finding a shared ownership mortgage with bad credit is not especially tricky. When providers offer shared ownership mortgages, they tend to be more flexible than other providers in the market. They’ll often accept high loan to value ratios and a be willing to lend to people with bad credit. You’ll simply need to have a provable income to show you can afford the mortgage and rental payments, and usually only a small deposit.

There are even lenders who are willing to consider shared ownership mortgages with NO DEPOSIT at all, making this an excellent method of climbing the property ladder for those with bad credit. If you have no deposit and a poor credit rating you should expect to pay a higher rate, but with the help of one of our shared ownership and bad credit mortgage advisors you should still be able to find a competitive deal.

Bad credit right to buy mortgages

The right to buy scheme is available to tenants living in council properties in England (there are separate schemes in Wales, Scotland and Northern Ireland) with no special lending criteria involved in securing a mortgage. That means, if you’re eligible for the scheme, you can buy your property at a considerable discount.

To qualify for the right to buy, you must have lived as a council tenant for at least five years (this does not have to be continuous or in the same property). So, if you’ve lived in council, housing association or government department properties for more than 5 years, you’re eligible.

Many right to buy mortgage lenders allow you to use the discount offered by the right to buy scheme to contribute towards the mortgage deposit. In many cases this means you will be able to get a bad credit right to buy mortgage with no credit at all.

Many of the lenders that offer right to buy mortgages are high street lenders; however, there are one or two specialist lenders our advisors know of who will consider customers with an adverse credit rating. For more information, please enquire today and an advisor will scour the market on your behalf to bring you a range of options that suit your circumstances.

Bad credit guarantor mortgages

A guarantor is an individual, usually a family member, who is willing to provide additional guarantees to a lender on behalf of the borrower. This provides the lender with reassurance that, if the borrower doesn’t pay, the guarantor will be legally responsible for making the repayments and they will not be left out of pocket.

This type of agreement is common among prospective borrowers with bad credit looking for personal loans or other forms of unsecured borrowing, but it will usually have little impact on a mortgage. If a lender is unwilling to consider a certain level of bad credit, the addition of a guarantor will often make little difference to their decision. The key is to approach a lender who is willing to accept the appropriate level of bad credit in your particular situation, which is something our advisors can help with.

How can we help?

Please complete our enquiry form and a specialist mortgage advisor will be in touch to offer a free, no-obligation initial consultation before searching the market to find the right shared ownership or right to buy mortgage for you.

Getting a Mortgage with Missed Payments

If you have missed mortgage payments in the past and find yourself in mortgage arrears, the most important thing is not to panic. Given the difficult time many of us have had given the recent economic climate, it is perfectly understandable that a significant number of people will fall behind on their mortgage repayments and enter mortgage arrears.

Buying a property, for most people, is the biggest financial commitment they’ll ever make, but only a small change in your circumstances can make it difficult to maintain these payments. This may include:

• Unforeseen bills such as home repairs for a broken down boiler or burst pipes;
• Car repairs;
• Medical expenses;
• A change in interest rates;
• A decrease in your level of income caused by an unexpected redundancy or a reduction of working hours.

How do mortgage companies view arrears?

Despite what you might read in the press, mortgage companies do not take any pleasure in repossessing people’s properties and generally making their lives miserable. In fact, in the vast majority of cases, they do everything they can to bring about an amicable resolution. However, if your mortgage arrears are rising uncontrollably or you fail to show you are taking adequate steps to resolve the situation, your lender will have no option but to take things further.

If you continue to miss payments, a lender is obliged to issue you a default notice before any legal action can start; however, this does not necessarily mean they intend to take you to court. The default notice will give you at least seven days to comply with whatever action is required, and at this point it is possible to prevent the situation from escalating further.

Some of the members of our experienced network of mortgage advisors are specialists at getting a mortgage with missed payments, refinancing a mortgage with missed payments, and finding a remortgage with mortgage arrears.

How can we help?

We put you in touch with mortgage advisors who are specialists at finding a suitable refinance mortgage for those with missed payments. We will try our very best to find a remortgage that will be t meet your specific needs and situation, and will be designed to repair your credit score over time while you continue to live in your home.

Simply complete our enquiry form with information about the mortgage deal you’re looking for and the most suitable broker will be in touch to offer a free, no-obligation initial consultation.

Bad Credit Mortgage Broker

We work with leading bad credit mortgage experts to find you the right deal in a wide range of circumstances. Our network of bad credit mortgage specialists have a track record of arranging affordable deals for people with poor credit in the following situations:

  • Low credit score
  • No credit history
  • A history of late payments
  • Missed mortgage payments in the past
  • Defaults on loans
  • County Court Judgements (CCJs)
  • Individual Voluntary Arrangements (IVAs)
  • Debt management schemes
  • Bankruptcies

If you have any of the above and have been refused a mortgage in the past, don’t let that hold you back. Wherever you are in your search for a mortgage, our bad credit mortgage brokers will to try help.

How can a bad credit mortgage specialist help?

When you’re looking for a bad credit mortgage broker to find you the right deal, you should only work with those who:

  • Are independent and search the whole of the market
  • Give you direct access to the deals
  • Have plenty of experience
  • Operate a reasonable and fair fee structure (no hidden fees!)
  • Have a happy and loyal band of previous customers

Bad credit mortgage experts can be split into two groups: those who work for you; and those who work for specific lenders. Working with an independent broker who is not tied to a specific lender means the number of mortgages they can access is unlimited, so they’ll be able to find the best deal on the market, rather than just the best deal offered by a specific lender.

People often come to us after searching for a mortgage without success. Many are happy to hear that there is a mortgage out there for them, it’s just about knowing where to look. We work with a network of bad credit mortgage experts who know precisely where to turn to find the most affordable mortgage for you.

The mortgage market changes constantly. It might be that there’s a mainstream lender that offers the best deal to meet your particular situation, or you might need a more flexible approach offered by a specialist bad credit (sub prime) lender. The good news is that there are new deals coming out all the time, with lenders amending their criteria on almost a daily basis as mortgage lending continues to expand in 2015.

Contact Mortgage Advisor.co.uk

We work with a leading network of mortgage advisors, some of whom are bad credit mortgage specialists who know exactly where to look find the right deals on the market right now. For a free, no-obligation discussion of your circumstances, please complete an enquiry form and one of our advisors will be in touch.