Mortgage After County Court Judgements
I have a fair degree of sympathy when it comes to finding a Mortgage with CCJ's because any one of us could end up having one on our credit file through no fault of our own. An illness or redundancy suddenly means you are unable to pay the next installment on a car loan or credit card and a County Court Judgement has been registered on your credit file (for the record I do not have any!)
As with any form of adverse, one of the most important considerations a lender will want to know when looking at the County Court Judgements on your credit file is the date they were registered (as well as the amount and if they have been satisfied).
If you have County Court Judgements for say £250 and no other adverse on your credit file, you could apply for a mortgage from a High Street lender with a good enough explanation. It would also help if it was cleared and better still, cleared after a month or two from when it was registered. Anymore than one County Court Judgement and you would be looking at specialist lenders.
To give you an insight into lenders criteria, County Court Judgements can broadly be divided in three time zones - County Court Judgements registered within 1 year, between 1 - 2 years and greater than 2 years.
Within 1 year
- 65% - 3+ County Court Judgements - I have a lender that will allow you to have more than 3 County Court Judgements registered within the last 12 months subject to underwriter approval and a very good reason but the rate and fees charged would be high.
- 70% - 1 x County Court Judgement that has been satisfied (paid off) within the last 12 months and with a monetary value greater than £5,000 or not satisfied and to a maximum monetary value of £5,000.
- 75% - no County Court Judgements within the last 12 months.
- 85% - 1 x County Court Judgement in last 12 months with a maximum monetary value of £1,000.
Within 2 years
- 85% - 1 x County Court Judgements to a maximum monetary value of £2,500 registered between 12 - 24 months.
Over 2 years
- 85% - All County Court Judgements can be ignored regardless of value, how many and do not have to be satisfied.