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Avoiding CCJ Mortgages

CCJ mortgages have a reputation for being one of the worst mortgage options you can obtain. While this is a false statement as they can be helpful if you want to avoid such a mortgage you do have options. First it is important to discuss what a CCJ mortgage is, why you would need one, and then how you can avoid them.

CCJ mortgages are sub prime loans with a high interest rate and higher monthly payment than a prime loan due to the risk a lender sees in the individual. The county court judgment placed on your credit record is going to determine the need for this type of mortgage. In other words if you have a CCJ against you the banks are automatically going to offer only a CCJ mortgage if they feel you are worth the risk. In some cases even this type of loan is not available depending on your credit history and other financial stats. But, let us not dwell on the negative. Instead let’s look at why this type of mortgage is helpful. For those who have a CCJ against them this is the only type of mortgage often available. This means that for someone to own a home and obtain the money they need to do so, they need CCJ mortgages. This type of mortgage is also considered an adverse mortgage as it is for those with bad credit. Having looked at the reasons for needing this type of mortgage and what it is we can now look at how to avoid them.

To avoid CCJ mortgages you have to have a good to excellent credit history. This means that you have to continue to pay your utility bills on time, as well as other debts on time for your entire life. As long as you can maintain a good to excellent credit history you will be looked on favorably. You also have to avoid any county court judgments that may be lodged against you from companies.

Another way to avoid CCJ mortgages is to have the CCJ removed from your record. This can take quite a bit of time. In most cases it will take at least five years before a court will consider removing a CCJ from your record. In some cases CCJ’s will not be removed from your record because you have failed to settle the actual judgment and the company refuses to let it close. In this case you are better off to settle with the company for the outstanding amount in some way and then right to the company to have them remove the CCJ from your record. There are many methods you can use for removal of the CCJ so speak with a mortgage broker or lawyer regarding these issues.

To avoid CCJ mortgages your best option is going to be striking the CCJ from your record or never having one in the first place. This will keep you in a favorable light. You may also find that when the CCJ is old enough the mortgage lenders will allow for another type of adverse mortgage rather than a CCJ loan.

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