Exact Answer: 30 days
Before getting on with the topic one should understand CCJ. It is the abbreviation for County Court Judgment. It’s a court order found in Northern Europe, mainly in countries like England, Wales, and Northern Ireland. It may also be called County Court Summons.
An individual can receive a CCJ if he/she is unable to pay the money they owe to a person and that person decides to move on with legal actions. The legal action starts with the complainant registering a complaint to the County Court. After which, the court sends a summons to the person who owes the money.
How Long After CCJ can I get a Mortgage?
|Before reflecting in the credit profile||30 days|
|After reflecting in the credit profile||Considering LVT|
Having a CCJ can drastically affect the credit score of an individual. Because of which they can find it really hard or almost impossible to get a loan or mortgage.
The time frame in which a person receives a CCJ is really important. The individual has the option to challenge the court to prove them wrong, pay the full amount, pay a partial amount, etc. But it is to be remembered that an individual can remove the CCJ from their credit profile if they pay back the owed money within 30 days. If they are unable to pay back within 30 days, it can reflect on their credit profile for 6 years.
Another important thing to be noted is that if an individual is unable to repay the owed money within 30 days or if they pay it after 30 days or within 6 years can have the same effect. That is; if the CCJ will be reflected in their credit profile either way.
If an individual pays back the owed money within 3o days, he/she can apply for a request to take down the CCJ from their credit profile. But it is to be remembered that the application request must be given within 30 days. Because the applications received after that period will not be taken into consideration.
If a person has a CCJ and if it’s not a huge amount some lenders can give a loan or mortgage. But this mostly depends upon the LVT ratio or Loan-to-Value ratio. In most cases, the lenders would look through an individual’s credit profile and will only provide the mortgage if they had passed 12 months on the settlement.
Why Does it Take Long After CCJ to get a Mortgage?
The main reason for not getting a mortgage after CCJ is because of the CCJ itself. Most people find having a CCJ to be proof that the person requiring a mortgage is not credible. But some lenient providers can look through that.
The loan or mortgage provider can give a decent loan if the CCJ is a low amount or the payment of the owed amount is complete after the CCJ withdrawing period.
The judgment by the court can arrive by post. This would contain details about the amount owed, the method of payment to be done which can be full payment or payment in parts, the estimated time frame in which the payment should be completed, and the details about the person or the company to which the person who owes the money should pay.
A mortgage provider also checks up on the date of CCJ. If it is well over 3 years the chances of getting a loan are high and it will not be an issue. If it was within two years and if the amount owed was huge, the complications in attaining a mortgage will also be huge. If it is within a year and even if the amount was less, the complications would be really difficult.
But the CCJ in a credit profile is long gone after 6 years. The details of the CCJ would not be visible thereafter. Sometimes the CCJ is repaid by the individual’s insurance agency. So that would not be of many complications.
The CCJ is not to be worried if an individual takes debt and pays it in the right amount of time. But this could be problematic and bring about many complications if the individual who owes money to another person or company does not repay in time.
Even if a person has CCJ and the money that they owe is repaid, it is still difficult to obtain a mortgage. Hence, they should not extend their debt to such lengthy durations. But if the amount is repaid after 30 days of obtaining the CCJ and if a person applies for a mortgage, there are always lenient providers who can give the necessary mortgage.