CCJs and Remortgages

If you are planning to remortgage your property, it is always a good idea to review your credit history first. You may have been issued a County Court Judgment (CCJ) years ago or may have forgotten about this, which can result in your being refused a remortgage. Moreover, a CCJ can negatively affect not only your remortgage application but other loans you might apply later on as well.

But what exactly is a CCJ? Why is it considered crucial in getting a remortgage approval? A CCJ is primarily given for instances where you took out a loan but for some intentional or unintentional reasons, you end up not being able to pay a debt. If you do not pay a debt and the company or lender you owed money to decide to take action against you, you end up facing a County Court Judgment (CCJ).

The CCJ is generally given after a court hearing wherein the court issued an order for you to repay a debt, in this instance – your mortgage or remortgage. The CCJ may be in the form of an agreement of a set payable amount between you and your creditor (the lender), or if you cannot agree, a payment set by the court. There are also cases when you have more than one creditor. For these instances, the court normally combines your debts and sends you an ‘administration order’ stating that you must make a monthly single payment which will be shared by all your creditors.

You usually send payment to either your lender or their solicitor or representative who will accept your payments on their behalf. For instances where you are unable to pay, you may request the court to change the amount of the agreed regular payments or temporarily suspend the CCJ until you can afford to pay. Your CCJ is recorded on the Register of County Court Judgments for six years, and this can be accessed by banks, building societies and loan companies to assist them in deciding whether to grant you a mortgage or remortgage.

Bear in mind that a CCJ can only be taken off the Register if you have paid it in full within one month or if it is set aside by the court. You can also search any CCJ registered against you and have it marked ‘satisfied’ after you have paid it off. Otherwise, your CCJ will be on the Register and can negatively affect your mortgage or remortgage applications. If you need assistance in getting a remortgage, you may consult with Money Beacon. They can get you in contact with one of their partners who specialize in remortgage applications and offer you some of the best remortgage deals available in the market. With over 9,000 plans available, Money Beacon can help you get a remortgage even if you have credit problems. An added value for you will include the opportunity of getting lower interest rates compared to high street banks or lenders, as well as getting a free no obligations quote.