Remortgage with a CCJ

What if I’m self-employed and have a CCJ? Can I still remortgage?

You can, and we could probably do a full episode on this one because it comes across my desk quite frequently. Having a CCJ when you’re self-employed doesn’t stop you from getting a mortgage or remortgage.

For any self-employed client, lenders look at sustainability of income. They will want to understand why you got the CCJ. If you got one last month and you say it was because business was quiet, you’ve just talked yourself out of a mortgage – because it’s so recent and because your business isn’t doing well.

We would need to sit down and look at business turnover, bank statements and the reason you got the CCJ. On the flip side, sometimes a client’s credit profile is absolutely gleaming, but they have a CCJ in their business. That can be flagged by lenders, as well. If you’re aware you have a CCJ in the business, we definitely need to know about it.

What happens if I’m declined a remortgage with a CCJ?

This is normally when people come to me. A lot of people like to use what’s familiar to them and go to their existing bank, but are then declined.

At that point, we need as much information as possible. Why was it declined? We look at your income, affordability and credit report to find a solution that’s going to work for you.

Always tell a broker if you’ve been declined – because otherwise, when that application goes into a new lender, they can see it. They can also see the application submitted.

We really do need honesty to be able to help. I had a client about two weeks ago where the previous broker used incorrect information on the application. I’ve put the application in with the right details and got a mortgage offer really quickly. It’s all about spending time preparing the case and doing the checks.

What else do we need to know about a remortgage with a CCJ?

It’s all about honesty. Sit down with us, let us work through it and help you. Give us the information we’re asking for and we’ll come back with a solution.

Quite often, if you’ve got a CCJ and you’re looking to remortgage, moving lenders might not always be the best option for you. If that’s the scenario, we can keep you with your existing lender and get you a new deal with them.

Key Takeaways:

• It is possible to remortgage with a County Court Judgment (CCJ), as many lenders will accept applicants with CCJs, sometimes even if they are not yet satisfied.
• CCJs typically disappear from credit reports after six years, though a lender might still see it if there’s a past application or related activity on recent bank statements.
• Having a satisfied CCJ can increase your chances of getting a mortgage or remortgage, but it’s advisable to consult a broker, as it’s not always compulsory.
• The date and size of the CCJ significantly impact remortgage chances, with smaller, older CCJs being viewed more favourably.
• Honesty with your broker is crucial, especially if you’ve been declined previously, as they can help find suitable solutions and ensure accurate applications.
  
  

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.

YOU MAY HAVE TO PAY AN EARLY REPAYMENT CHARGE TO YOUR EXISTING LENDER IF YOU REMORTGAGE.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH REPAYMENTS ON YOUR MORTGAGE.