Many people have a CCJ on their credit file. This is more common than most people think, we work with lenders that can consider all types of scenarios. Even recent CCJ’s are considered and in some cases, the lender will overlook them if they believe the person will be able to make their payments on a new loan even with a poor credit history, this should not stand in the way of you getting a mortgage.

Most high street banks don’t offer mortgages to people with CCJs, but specialist banks and lenders often have specific deals for working with CCJs. As Finance Advice Centre has access to “whole of the market”, we are able to work with these lenders to get the best deals for people with CCJs.

A few things to keep in mind if you are applying for a loan with a CCJ:

• Your CCJ is unlikely to have an effect on your mortgage application if you managed to repay your debt within 30 days or if you successfully appealed your CCJ – even though it may still appear on your credit history.
• The biggest factor for the lender is whether your CCJ has been paid, settled, or is still outstanding.
• You are unlikely to be approved for a mortgage if you have an outstanding CCJ so it is always best to try and pay these off as soon as possible
• If your CCJ has been taken to court then you are less likely to receive a mortgage
• A CCJ is removed from your file 6 years after payment, but that does not mean you can’t be considered for a loan in those 6 years. Many lenders require the CCJ to have been settled for at least a year, but some will consider applications with more recently cleared CCJs
• The amount on your CCJ has bearing on your application. If your CCJ was for less than £2,500 then you have a better chance of getting a better mortgage
• Your CCJ is likely to influence the deposit amount your lender requires. Depending on your CCJ, this could mean a deposit of anything between 15% and 35% of the property value
• The higher your deposit, the better your chance of securing a mortgage. Keep this in mind when looking at houses and saving the deposit for your new house.

Defaults on your credit file is the most common adverse credit we see. We have helped many clients and work with lenders who will consider all types of circumstances including recent Defaults. In some cases, they will ignore them if under a set amount.

Not all defaults are the same and lenders will look differently on mail-order accounts to the way they view defaulting on a previous mortgage. With that in mind, different lenders will have different options for different types of applications and defaults. That’s why it is important to use a service like ours to find the best lender. We will be able to locate the best rates as well as advise you on how to save money throughout the process of applying for a mortgage.

A default will stay on your credit history for 6 years, but the further you are away from it, the higher your chances of getting a good mortgage rate and deal.

If you have still not settled your debt, speak to one of our advisors. Although it is usually best to pay back your debts quickly and in full, there are times when mortgage applications have different requirements. Bad credit mortgages often don’t look at credit scores alone and look at when debts were registered rather than when they were paid off. This can be a tricky path to navigate, which is why our advisors are perfectly placed to help you sort out previous debts while applying for your mortgage. Be as honest with our advisors as possible and we will be able to get you the best deal possible.

We work with lenders that have a flexible approach to missed payments; the dates and amount of missed payments would be key to the options available to you. Some lenders manually underwrite your application so may not fit on the high street. However, it may pass with some specialist lenders. We have access to these lenders and can help you get a specialised mortgage.

The biggest factors lenders look at when considering applications for home loans from people with missed payments are what the loan was for, how much the payment was, and how long it took to repay the debt. Lenders want to know if the payments were missed on secured loans (like mortgages or car payments) or unsecured loans (like mobile phone contracts). If you have missed a payment on an unsecured loan, then you can probably still get a reasonable mortgage deal. If you have missed payment on a secured loan, those chances decrease.

If you have missed payments on your credit history, you can still be considered for a mortgage. Missed payments disappear from your credit history after 6 months, but they also matter less as time passes. If you have recently missed payments then you are likely to need a larger deposit to satisfy your lender’s requirements.

If you are currently in an IVA your options may be limited and would need to be settled as part of the application. You’ll also need to provide a good-sized deposit. When you have satisfied the IVA and the discharge date becomes older, there are more lenders that would consider your application. If your IVA is older than 6 years it will drop off your credit history, however, some lenders might still ask if you have had one and an old IVA may still factor into their decision.

The advantage of a completed IVA is that you can prove you did pay off your debt, if you have managed to rebuild your credit score slightly since paying it off that also looks good to potential lenders. This puts you in a much better position than you are at the start of an IVA. Either way, our advisors can help you find lenders who are most likely to accept your offer and consider you for a mortgage.

If your IVA was settled within the last 4 years then you will probably need a deposit over 15%, but if the IVA was settled more than 4 years ago you might be able to get a mortgage with a deposit as low as 5%.

We deal with lenders that would consider lending to clients that are currently in a debt management arrangement as well as clients that currently have payment plans set up with creditors. In some cases, the arrangement or debt management can stay in place and does not have to be cleared as part of the application.

Most lenders will want to look at your income, loan-to-value, affordability, and credit score before making a decision. You are also far more likely to get a favourable decision from a speciality lender than a high street bank. Your advantage will come from having an advisor who knows which speciality lenders to look at and who has access to the whole of the market. Being declined by a lender can look bad on your credit score, so leaving it to your advisor to find the right deal for you is hugely important.

As with most marks on credit history, the longer ago the debt management plan, the better your chances of a good mortgage and low deposit. If you are currently in a debt management plan there may still be mortgage options available to you, but you will probably need a larger deposit and be charged higher interest rates.

Bankruptcy is an area we have helped many people in due to the lender products we have available. We work with lenders that would consider a bad credit mortgage application from the first day you are discharged. As the bankruptcy discharge date gets older, there are more options available. After a few years of rebuilding your credit score, you may be able to move your mortgage to a different bank with lower rates. Lenders do offer specialist bad credit mortgage (adverse credit mortgages for people with bad credit).

Speciality lenders will still consider you if you have declared bankruptcy in the past, but be prepared to offer a deposit anywhere between 20-40% of the value of the property. Keep in mind that in the long run, this may still work to your advantage – if you are able to move to another lender after a few years, you will have a lot less to pay off, meaning interest repayments will also be lower.

A mortgage after a previous repossession is possible. The date of the repossession and also if there is any debt outstanding will be key to your options available. If your repossession was less than a year ago you are unlikely to be eligible for any mortgage, but thereafter it is a possibility providing you have a specialised lender and are able to put up around a 35% deposit.

Our advisors will look at the reasons for repossession, the value of the property, and how long ago it happened. These will all be major factors for potential lenders. With access to the whole of the market, we can find lenders who specialise in bad credit mortgages for people with a history of repossession.