Ccj Mortgage

Written by Jeremy Horelick
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Many lenders will incur the added risk and offer what are called CCJ mortgages to applicants with poor credit history. A County Court Judgment (CCJ) may be issued against anyone who has failed to satisfy his or her debt payments. As a result, any time that candidate applies for a loan, potential lenders see the delinquency on that borrower's record, which usually dissuades them from an approval.

A CCJ must be satisfied before an applicant may take out a mortgage. Then, once all requirements have been met, the blemish stays on that applicant's record for seven years, making it next to impossible to convince potential lenders of credit-worthiness. Despite their high interest rates, CCJ mortgages give those with tarnished histories a chance for a fresh start. So long as the applicant is willing to assume the higher debt, he or she can almost always find some institution to approve a mortgage loan.

More Than Just CCJ Mortgages

In addition to CCJ mortgages, there are products tailored to those with a host of other credit woes. Applicants with mortgage arrears, bankruptcies, and histories of late payments may all qualify for higher-rate loans from certain lenders. This is due in part to new measures by the Mortgage Code Compliance Board (MCCB), which has urged lenders to relax their requirements. As it stands, over one million applicants are turned down in the UK each year.

If you're worried about your adverse credit history, consider that some three million Britons have suffered CCJs, and two million have been in arrears. With numbers like those, it's understandable why more and more mainstream lenders have relaxed their eligibility standards. If you're forthcoming with your potential lender, you stand a better chance of approval. Most institutions are content to see that you understand why you got into financial trouble in the first place so you can avoid repeating your mistakes.


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