Can You Remortgage with a County Court Judgement (CCJ)?

Credit problems can be set even the most financially savvy person. Debts and repayment issues might affect your ability to lend more money in the future and can impact the decisions of banks on whether they’ll allow you to remortgage your property. Remortgaging after a CCJ (county court judgement) can have repercussions, although it’s still possible. 

To jump through the hoops you’ll be presented with, you need to prepare your remortgage application meticulously and make sure you’re aware of what the banks will ask you. Read on as we highlight the steps you can take to organise your credit report in the run-up to your remortgage application. 

A CCJ (County Court Judgment) is issued against you by a creditor in an attempt to reclaim funds you have failed to pay. Depending on the judgment from the court, you may be offered the chance to settle the debt within 30 days. If you repay the debt, you can apply to the Register of Judgments and Fines, where the CCJ will be removed from the public register and your credit file. 

If you’re unable to repay the debt within the given timeframe, the CCJ will remain on your record for 6 years. This will impact your ability to apply for credit, including getting a remortgage on your property.

Yes, CCJ mortgage interest rates are typically higher than standard mortgage rates. Lenders perceive applicants with CCJs as higher risk, leading to increased interest rates to offset potential financial uncertainty. However, the exact rate depends on factors such as the size and age of the CCJ, credit history and deposit amount.

A judgement in default is a CCJ that has been applied to your credit report without you being in attendance at court. 

If you do have an existing ‘judgement in default’ CCJ, you’re going to find yourself paying higher interest rates on your home loan.

To give lenders an opportunity to see that you’re managing your credit more successfully, ensure that you’re not regularly applying for credit and that you’re in receipt of a steady regular income.

If you find yourself in a position where you want to remortgage your property, you might want to acquaint yourself with a mortgage advisor. Here at John Charcol, we can help you search the market for a product that will suit your economic circumstances. An advisor can help you assess your finances and ensure you understand the implications of and terms of the mortgage before you proceed. We understand the complexities of remortgaging and can navigate you through the intricacies of remortgaging with a CCJ.

Making an application for a mortgage loan is not always going to be as easy if you have a CCJ, but it’s manageable. In circumstances such as these, you may find securing the services of a mortgage broker can help navigate you through the choppy waters. 

Call us today on 0330 433 2927 or request a call back, and an adviser will talk through all your options with you.