CCJ Mortgages - A Brief Introduction

County Court Judgments or CCJs can be defined as, “legal judgements given by the County Courts.” The judgements for monetary amounts are entered in the Register of County Court Judgments and it is in turn verified by different credit reference organisations in order to assess the credit-worthiness of borrowers.

A CCJ is a special court order that sets out the terms for the repayment of debts. CCJs are awarded against a person if he/she is summoned to the court over pending or outstanding debts and they do not show up or lose the case.

A CCJ remortgage is a type of remortgage that one would apply if their creditors had served them with a CCJ. A CCJ is passed against an individual if they owe an individual or company money and they did not and/or is not in a position to repay back. If there is a CCJ registered against a person, then it shows up on their credit reference verification/check, and in turn affects their credit history. Once a CCJ is served, it stays in their credit history for a minimum of six years.

But there are some mortgage firms or lenders that do take into account the CCJs a person has, any previous CCJs, their credit history, repayment track record etc. But the mortgage rates would vary and differ and would finally be based on their CCJ. The mortgages that are issued are called CCJ mortgages or CCJ remortgages.

Basically, lenders do provide mortgages to people with CCJs, but the interest rates are higher. Nowadays, CCJ mortgages are quite common, and some banks are also offering mortgages for people with CCJs. CCJs can come about because of various factors like a divorce, default in child support payments, vehicle loan default etc. So the firms also weigh in the different possibilities/factors and the reasons CCJs were issued against a person and thus determine the mortgage loan.

One important thing is that a person with a CCJ mortgage should make regular payments and not miss any mortgage payments. If they do so and keep up their payments, then it does improve their credit history. CCJ mortgages are sort of like the last ditch try or effort one gets to avail a mortgage loan and so should be careful with the repayments. So the base line is a CCJ mortgage is available for clients with CCJs, all that one needs to do is to keep up their repayments on a regular basis. 

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