How to Secure a Mortgage with a CCJ or Defaulted Credit Account

Jun 08, 2024

Securing a mortgage with a County Court Judgment (CCJ) or a defaulted credit account can seem daunting. However, it is not impossible. With the right approach, you can still achieve your goal of homeownership.

Understand Your Credit Report

The first step is to understand your credit report. You need to know what lenders will see when they review your application. Obtain a copy of your credit report from a credit reference agency. Check for any errors and understand the impact of your CCJ or default.

Reviewing your credit report helps you identify areas for improvement. You can also see if there are any mistakes that need correcting. This is crucial because even small errors can affect your mortgage application.

credit report

Make sure you pay your bills on time. This shows lenders that you are responsible with your finances.

Register on the Electoral Roll

Being registered on the electoral roll can improve your credit score. It helps lenders verify your identity and address. If you are not already registered, do so as soon as possible.

Save for a Larger Deposit

Lenders may see you as a higher risk if you have a CCJ or default. Offering a larger deposit can help mitigate this risk. Aim to save at least 20% of the property's value. This shows lenders that you are serious about your financial commitment.

Seek Professional Advice

Consulting with a mortgage broker like Mortgage321 can be beneficial. They have experience with clients in similar situations. A broker can guide you through the process and help you find lenders who are more likely to approve your application.

mortgage broker

Provide a Clear Explanation

When applying for a mortgage, provide a clear explanation of your financial situation. Lenders appreciate transparency. Explain the circumstances that led to your CCJ or default and what steps you have taken to improve your finances.

Securing a mortgage with a CCJ or defaulted credit account requires effort and patience. By understanding your credit report, improving your credit score, saving for a larger deposit, and seeking professional advice, you can increase your chances of approval. Remember, there are specialist lenders who can help you achieve your dream of homeownership.

For more information contact us today, call 01255 440142 or email [email protected].