If you fail to pay money that you owe and all attempts to recovery the funds, including letters, defaults and late payment notices, are unsuccessful, you may be issued with a county court judgment (CCJ), something that can have serious consequences and affect your chances of securing other financial products, such as mortgages.
The judgement will come in the post, detailing how much you owe, how to pay, the deadline for paying and who to pay, with records kept for six years, unless payment is made within a month.
It’s important to make sure that you meet the payments on the CCJ, as well as any other credit agreements you have in place. If you think you may miss a payment, contact the lender as soon as you can to discuss your options. Also make sure you minimise any applications for new credit.
Can I get a mortgage with a CCJ?
The good news is that there are lenders out there who do provide mortgages and financial products for people with CCJs, but it’s important to make use of a mortgage broker if you are in this situation, as they’ll be able to find you the best deal.
The more recent and more expensive your CCJ is, the harder it is likely to be for you to get a mortgage deal. The size of the CCJ will likely affect your mortgage application, as well as the date, so if it was within two years and above £2,500, for example, it might be worth waiting if possible before trying to take a mortgage out.
