Prime Minister Theresa May responded earlier this month to an investigation by the Daily Mail into alleged abuse of County Court Judgements or CCJs as they are known as in the financial sector.

CCJs are a black mark on your credit file and can stop someone getting a mortgage or even qualifying for a mobile phone contract. The main problem with CCJs is that a lot of people simply don’t know they even have them, until they are turned down for credit.

The most common reason for this is that letters are sent to previous addresses, meaning that over 8 in 10 remain uncontested. Failing to update the DVLA when you move house can mean parking tickets and speeding fines go unpaid and result in the all too damaging CCJ.

Over the past 3 years the number of CCJs has risen by over a 1/3rd with over 900,000 issued last year and over 2,000 a day heard in court, with no defence entered.

Everyone should check their credit file to ensure that there is nothing there which shouldn’t be there. If you are looking for a mortgage, this needs to be your first port of call. There are various credit checking websites which charge you a monthly subscription, but you can usually cancel without charge in 30 days and some websites offer free checks.

Under the Data Protection Act, everyone is entitled to challenge the information held about them on the register, but getting it removed can be often be difficult and very time consuming.

Here are a few examples of CCJs we have come across:

  • A utility bill for £3.20 went unpaid when our clients moved home. Demands for the money were sent to the old address and eventually a CCJ registered against them. Nothing was discovered until they came to Remortgage 2 years later and were promptly turned down.
  • Someone living close by with the same surname and initial (but completely different first name) as our client was blacklisted for not keeping up payments on a car loan. A massive CCJ for £13,000 was registered against our client at his home address.
  • A wife who was divorcing her husband ran up a £8,000 credit card bill in her husband’s name, while living with her new partner in Turkey.

We managed (eventually) to sort all three of these clients out with a mortgage, but not without an awful lot of hassle, stress and time. The third example took over a year to resolve.

Of course there are plenty of CCJs registered with good reason and often if they are “satisfied” getting a mortgage is a strong possibility.

If you have a question about CCJs and how they can affect your ability to get a mortgage, you need to speak to an Independent Mortgage Adviser. 

Related Blog articles:

For more information speak to a mortgage adviser on 01628 507477 or contact us .

Recent posts

Selling up? It’s important to make your house as appealing as possible to potential buyers. Good decorating can help with first impressions, and increase the perceived value of your property.

With the cost of living affecting so many of us, we have made a list of budget-friendly activities and ideas for you.

Moving soon? It's never too early to get organised! Be prepared and avoid unwanted stress by checking out our list of tips to get you ready for moving day.

Inflation simply put, is the increase in the price of something over time. The Office for National Statistics (ONS) tracks the prices of hundreds of everyday items and these items are updated to reflect shopping trends.

We are often asked if it's good advice to consolidate “unsecured” debt (credit cards and loans etc) into your mortgage, the answer is, sometimes

When you’re looking to buy a home, and you own a car, you ideally want to know the rules on parking in the area. Parking rules can be confusing, even for the most experienced of drivers! This is why we have written this blog to help you.

There are several potential sources you can consider when it comes to getting together a deposit to buy a property. Providing proof of the source of your deposit is a key requirement in the application process and will need to be given to both the lender and the solicitor.