Don’t let your clients' CCJs hamper their mortgage dreams

A blemish on a potential borrower’s credit report doesn’t necessarily mean that their home ownership aspirations have to go on hold.

One of the most common of such credit blips is a County Court Judgement (CCJ).  

So, what exactly is a CCJ?

A County Court Judgement is issued if people fail to pay money that they owe and most other reasonable avenues to recover the money have been ignored and exhausted. Many mainstream lenders refuse mortgages to people with an open CCJ, or ones that have occurred in the past three years. 

A satisfied court judgement - one which has been paid off, solved or settled - is looked on more favourably. A settled CCJ disappears from a borrower’s credit file after six years.

289,971 County Court judgements (CCJs) were registered against consumers in England and Wales in Q3 2019, making these the highest amount of registered judgements against consumers since 2017. The Registry Trust predict that these levels are expected to be sustained. Recently, claimants are also  taking out larger judgements, the total value of consumer CCJs increased to £419.5million, a rise of 14 per cent from last year’s figures.

What does this mean for intermediaries?

CCJs and other credit blips come in all shapes and sizes, making it difficult compare the deals on offer as they often don’t fit within the dimensions of a tick box criteria formula. Then there is the issue of intermediaries not knowing which lenders will service what level of credit history as they often deal with such borrowers on a case-by-case basis.

This combination means that it’s more important than ever for intermediaries to fully understand what type of credit blips their clients have, how far away they are from the computer says no criteria of many high-street banks and how specialist lenders, such as us, can help.

So, if you’re looking for a lender who understands how credit blips are not the end of the mortgage world for certain borrowers, then contact us today to find out how we can help.

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