However, with some guidance, it becomes a pretty straightforward process. Your best chance of getting one is with a specialist lender instead of standard lenders. Getting bad credit mortgages is always going to be more of a challenge. However, you may still find a mortgage lender if you prove that the previous bad credit is resolved.

Things to Remember If You Want a Mortgage with CCJ

If you have a CCJ, standard lenders can be more reluctant to lend you anything. Your best chance if you ever find yourself in this condition is to find a broker who can give you advice based on your situation. These brokers can explain why a specialist lender might be the best option for a mortgage with CCJ. A general rule of thumb is that the smaller the CCJ, the more chance you have of being accepted for a mortgage.

If you have more than 1 CCJ, you must approach a specialist lender dealing with bad credit mortgages. Most lenders won't want to issue mortgages to those with CCJs issued in the last 12 months. Furthermore, even specialist lenders are reluctant to give you a mortgage with bad credit if you had more than 2 CCJs during the previous two years.

It would be best to remember other things that a mortgage provider will consider. For example, if you have not had more than 2 CCJs in the last two years, if the deposit amount you can afford is small, they might not consider you fit for a mortgage. If, however, you do have even 1 CCJ, the most helpful advice would be to try and put down a large amount of money for your deposit. Another essential piece of advice would be to try and make the rest of your credit file look as appealing as possible. To do so, avoid late payments.

How Long Does a CCJ Last?

CCJ remains on your credit record for six years. You must also disclose it whenever you get asked about your credit history. This bad credit history can cause problems when looking to get a mortgage. However, a CCJ doesn't automatically make your credit score terrible, and people who want to get a mortgage with CCJ should know that many other things impact your credit too. The bottom line is that if you work hard to keep the other aspects in tip-top shape, your overall credit score could still be classed as good and allow you to apply for a mortgage.

After six years, the CCJ is taken off your credit file, but many lenders ask additional questions about your past credit situations. At this point, you will have to reveal whatever number of CCJs you have had. If you fail to provide them with this information, even if you had no CCJ in the past or a lot of time passed since then, you can find yourself in a lot of trouble. So have no fear. You can still get a bad credit mortgage. The key is just to let the people know. It is recommended that you speak with a professional mortgage broker. These experts are regulated by the FCA (Financial Conduct Authority). Therefore, any information you provide them is safe.

All About the Mortgage Application Process

Many people, especially those who want to get a mortgage with CCJ, wonder what happens between making an inquiry and getting the keys to their property. The first step in the application is to talk to a broker or a bank. You can even do this via e-mail or a phone call. Next step, after they call, you will have a strategy call. Typically, a 10-minute call. The call mainly focuses on your plans and whether or not they are realistic. After that, you will gather your documents.

Your documents consist of income proof, credit files, and bank statements. Once they are assessed, and the lender is happy with all of them, especially the credit file, and they consider that everything matches with everything you told them in the strategy call, they will provide you with a mortgage quote. Then, assuming you are happy with the mortgage quote, they will fill you in about the next step. By this time, you should know the rate, monthly payment, the term, fees, everything.

If everything proves to be nothing but smooth sailing, after your approval, you will possess a mortgage certificate. You will then go and start looking for the property of your dreams within the budget. You will provide the estate agent with that mortgage certificate, proving that you are mortgage material. Considering your offer gets accepted, and your mortgage lender is happy after they conduct their survey, they will issue the mortgage offer. A mortgage offer represents the legal document stating you've got the mortgage. So have no fear; there is still life with a bad credit mortgage and getting a mortgage with CCJ is indeed possible.

Are Bad Credit Mortgages Possible?

If you want to purchase your dream home but are worried that you had some bad credit in the past or maybe you still have it, you should not panic. There are some excellent options available for you to get bad credit mortgages. Looking at your credit file is one of the most important, even crucial, things about making this process possible. The next step will be to present this credit file to a mortgage broker so they can distinguish if a mortgage is possible.

The good news is that initially, you only need a 5% deposit. Generally speaking, the worse the bad credit is, the higher the rates will be, and ultimately you will have fewer options available. Sometimes the lender will not give you a mortgage because you may need a bigger deposit. It would be best if you did not get scared, as most lenders will consider you based on any circumstance. In other good news, since 2021, the rates have been historically low. If you're in this situation of bad credit mortgages, now would be the time. Maybe this fact appeals to you and enables you to climb the proper ladder.