Skip to Navigation [2] (press enter)
Skip to Useful links [3] (press enter)
Poor credit history
CCJs & Defaults
Once a County Court Judgement has been granted you have one month in which to pay the debt 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 will remain on your credit record for six years. This will adversely affect your credit rating and make it more expensive and difficult to get finance, as you will need to turn to the specialist lending market.
We have access to the whole market and can source the right product for you.
- Whether you have one CCJ against your name or several we can work to identify the right mortgage for you.
- Some lenders will even disregard a small CCJ for an amount lower than £150.
- Although CCJs, whether satisfied or outstanding, remain on your record for six years, many specialist lenders will only take into consideration those that have been made within the last 2 or 3 years.
- In many instances you will be able to remortgage your home to pay off any outstanding CCJs or other debts.
If you would like help in arranging a mortgage then please call on 0800 310 1224 and our specialist mortgage advisors will be pleased to help.
Individual Voluntary Arrangement (IVA)
An Individual Voluntary Arrangement
is an alternative to bankruptcy in which the debtor arranges a formal
agreement with his creditors to pay off a percentage of his debt over
a set period of time, usually around 5 years. The arrangement is court
approved and overseen by an Insolvency Practitioner who is known as
the Supervisor.
An IVA is often seen as advantageous to bankruptcy
- It has less of an adverse effect on your credit history.
- Your home remains relatively untouched.
- Where bankruptcy may cause you to lose your job an IVA may not.
- You agree the terms of the IVA with your creditors.
However if you have arranged an IVA, you will probably be aware that although it makes it much easier for you to keep your home, it is standard for many IVAs to include a clause that stipulates that after a set number of years you will be required to have your home valued and to give your creditors a certain percentage of the equity that has been built up as a final payment.
We are able to help those at any stage of their IVA to release equity in their home or move to a new property. If your IVA has finished we can help you buy a new property.
Normally the greater time that has elapsed since you were released from your IVA the greater your access to better deals with smaller deposit if you are looking to purchase.
If you would like help in arranging a mortgage then please call on 0800 310 1224 and our specialist mortgage advisors will be pleased to help.
Mortgage Arrears
Your mortgage is a loan secured on your home. This
means that your lender can repossess your home if you are unable to
maintain your mortgage payments and have fallen into arrears. They
will normally only take that action if they feel there is no real alternative
open to them. Lenders have an obligation to act responsibility.
If you are unable to make your mortgage payments you should seek advice
as soon as possible from the Citizens
Advice Bureau, your lender
or talk to us. You need to act quickly to prevent your home from being
repossessed by the bank and sold to pay off your debt to them.
There may be options for you to take control of the situation, by remortgaging
your home; you may be able to release enough equity to pay off arrears
and even to reduce your monthly payments making it easier to meet your
mortgage payments in the future.
The more mortgage payments you have missed the higher the risk you
will be to a new lender. As a result you will not be eligible for
the more competitive deals. Remember it is always better to try and
fix the problem sooner rather than later.
We are willing to provide you with free advice and guidance if you find yourself in this situation, please contact us on 0800 310 1224 to speak to one of our experienced mortgage specialists today.
Bankruptcy
While you are Bankrupt you are unlikely to be able to get a mortgage. Getting a mortgage after bankruptcy is more possible, we work with many specialist lenders who are willing to offer mortgage loans to people who have been declared bankrupt in the past. In some cases we can even arrange a mortgage within your first year after being discharged.
Lending to discharged bankrupts is a higher risk proposition than most other areas and as a result lenders charge a premium for lending in this market. This generally results in higher interest rates for the borrower or a decreased Loan-to-Value (the percentage of the property value the lender is willing to loan), or possibly both. The longer you have been discharged from bankruptcy the better the rates that will be available for you.
Once you have been discharged it is important to build up a good credit rating to improve the options available to you. Taking out a new credit card, opening a new bank account, taking a small personal loan are all good ways of improving your credit rating once you are discharged, providing you can afford to meet all repayments on the due dates. Getting a mortgage is also a first step towards rebuilding your credit history; we have lenders who will need only 12 months of good mortgage repayment history before you may qualify for lower interest rates.
If you would like to discuss your situation please contact us on 0800 310 1224 to speak to one of our experienced mortgage specialists today.