Trying to arrange a remortgage when you have a County Court Judgement (CCJ) registered against you can be problematic. However, if you speak to Solution Mortgages, a CCJ remortgage specialist which should still be able to help you.
If you have a an unsecured loan or credit card and have failed to keep up with your payments, the creditor (a person or company to whom you owe money), must issue you with a “default notice” before they take legal action. A default normally occurs when the terms of a credit agreement have not been met and the account is 3-6 months in arrears.
The creditor can start court proceedings if you do not comply with the default notice and this can lead to the registering of a CCJ.
The County Court will make an order that you must repay the debt and this will then be listed on your credit file. In Scotland a CCJ is known as a “Decree” and is issued by the local Sheriff Courts.
If you receive notification of a CCJ, you will have one month in which to pay the amount in full before the CCJ becomes registered with the Register of County Court Judgements. Once the CCJ has been registered, even if you pay it in full at a later date, it remains on your credit file for six years.
This will impact your ability to get credit in future from traditional sources such as high street banks. However Solution Mortgages use lenders who will consider applications from people with CCJ's and have criteria which defines the interest rate based on the number and size of the CCJ's.