If you do not pay the CCJ back at all, your lender could resort to sending bailiffs to claim assets and it will stay on your report for 6 years.
Can you still apply for a mortgage with a CCJ?
If you have a CCJ, it is still possible to get a mortgage but there are a few factors that a lender will have to take into consideration before accepting an application.
The most important thing lenders will consider is the date of the CCJ. Lenders tend to ignore CCJs from 3 years ago or more, so as long as that is the case then you may be able to get as much as a 95% mortgage. If your CCJ is 12 months old or over then lenders will only really be willing to provide you with a maximum of a 75% mortgage – please note this is not guaranteed as all lenders will have different regulations.
Another factor lenders will take into consideration is the size of the CCJ. If over around 3 years old then any size CCJ can be considered for a mortgage. If it is within 2 years there will usually be a limit of a £2500 CCJ if borrowing upwards of 80%. CCJs within the last year would have a maximum of £1000 – some CCJs will consider larger ones but if they were to accept a larger deposit (25-35%) would be required. Therefore, the size of your deposit will also play a big part in whether or not you can apply with a CCJ.
The number of CCJs you have will also play a part in the decision a lender makes. Generally, the limit within the last 2 years will be 2 CCJs, and there are no restrictions when over 2 years old. Lenders potentially could consider an applicant with more if their deposit is larger (25-35%).
Whether or not you have any other credit issue or a bad credit history can also impact the lenders decision.
If you would like to find out whether or not you are eligible to apply for a mortgage, or would just benefit from some more information on CCJs and Mortgages then contact us today on 0333 320 8658 or send an email to info@viewfinance.co.uk and one of our advisers will be happy to speak with you.
