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County Court Judgment Mortgages

Mortgages are designed to help an individual obtain the money they need to purchase a house. There are several reasons an individual may have trouble securing the proper amount of money with a loan. It is important to understand how mortgages work as well as how to obtain the right mortgage for you. With those who have experienced mortgage issues in the past it may be beneficial to learn about CCJ mortgages. This type of mortgage is designed to help those with county court judgments obtain a mortgage on a home.

A CCJ mortgage is a sub prime mortgage. This means that the interest rate of the mortgage is usually adjustable, high, and will have a higher monthly payment than other loans. The banks who lend these types of mortgages are taking a greater risk with you in that you could become a default borrower. A default borrower is someone who does not make the mortgage payments on time or at all when they experience financial stress. To make the most money of off this type of mortgage the lending companies with sub prime loans try to make the most through interest rates. Interest rates are where all banks are going to make their income. They will not just loan out the money without some type of return on the investment. Therefore they are willing to take certain risks.

A county court judgment if you are not familiar with the term means that a person defaulted on some type of expense in their life. It could be related to a previous mortgage they were unable to pay back or it can be one missed utility bill payment. What happens with a county court judgment is that the company of the bill applies to the court for a judgment against the individual demanding payment for the amount. The individual then has to come up with that amount and in some cases apply for bankruptcy as they are unable to pay the amount. Until the county court judgment is satisfactorily addressed the credit history of that individual is tarnished. It can also take five years for the judgment to be removed from a credit history once the amount has been paid. It usually takes a letter. Having delved into this you can now see why it can be difficult to get a mainstream loan. The CCJ mortgages option allows an individual with a CCJ on their credit report to find what they need.

CCJ mortgages can be found in various places from going directly to a bank or by searching for a lender online. When you try to locate a mortgage lender you will need to also know a few things that can save you from CCJ mortgages with extremely high interest rates. It is important to speak with at least two to three lenders regarding your options if you are not going to employ a mortgage broker. This can help you compare the interest rates and choose a rate that is more in the line of your needs rather than succumbing to the first offer you receive.

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