Can I get a mortgage with an unsatisfied CCJ?

If you owe someone money, they may apply for a County Court Judgment ordering you to pay it back. Those orders typically go by the common term of CCJs. Can I get a mortgage with an unsatisfied CCJ this post will explore this in more details.

As Citizens Advice warns, once you have a CCJ against you, it is likely to affect your credit rating – so, making it challenging to secure credit in the future and, most critically, a mortgage.

Simply having a CCJ against you, though, is by no means the end of the story. A record number of CCJs were issued in 2019, reported the Guardian newspaper recently – a volume that has doubled since 2012. A CCJ alone may not prevent you from getting a mortgage.

What is taken into account?

There is little doubt that a CCJ adversely affects your credit rating – and a healthy credit rating is the route to success in obtaining any kind of mortgage. The CCJ appears on your credit report, and that is the information held…

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Can I get a mortgage with satisfied CCJ?

A record number of CCJs – or County Court Judgments – were issued in 2019, according to the Money Expert. The total of 1.17 million CCJs issued represented £1.7 billion of debt, an 8% increase in the comparable figures for the year before.

With so many individuals likely to be the subject of such judgments, therefore, it might be helpful to examine just what they are and address whether it is possible to get a mortgage with a satisfied CCJ.

What is a CCJ?

If someone – an individual or a company – believes that you owe them money and you have not responded to their requests for payment, they may apply to the county court requesting an order that you pay the amount owed.

The process is relatively straight forward, as is the communication of any order made by the County Court. As the official website explains, the CCJ is simply sent to you by post, at your last known address, stating:

the amount you owe; how to make payment – b…
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Can I remortgage to borrow more?

Up to 800,000 UK homeowners could be paying more than necessary for their mortgage, said an article in Homes & Property recently. They could be saving up to seven weeks’ worth of earnings simply by remortgaging, claimed the magazine.

A similar point had been made by Forbes magazine on the 22nd of April 2020, when it referred to the Bank of England’s reduction of the base lending rate to 0.1% on the 19th of March and the subsequent fall in mortgage rates generally.

Reasons to remortgage

Forbes argued that the fall in interest rates allowed many mortgage holders to remortgage their home to enjoy a more favourable, competitive deal.

Many homeowners enjoyed cut-price mortgage repayments while on an initial fixed-rate deal but have since reverted to the lender’s much higher standard variable rate (SVR) once the initial introductory offer expired. Remortgaging – effectively replacing the existing mortgage with a new alternative – offers a way …

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Can I remortgage a paid-off property?

You might be in the fortunate position of having paid off your mortgage – whether the mortgage on your main residence or a buy to let mortgage. Although you are glad that there are no monthly mortgage repayments to make, you rue the fact that there is so much capital locked up in your 100% equity of the property.

You have probably heard of property owners who have gained an improved mortgage deal or unlocked a percentage of their equity and raised additional cash through remortgaging. You ask yourself, therefore, whether you can remortgage a paid-off property.

Mortgage or remortgage?

Credit reference agency Equifax explains that you remortgage a property you own when you pay off any existing mortgage with a new one – effectively, a remortgage is a replacement mortgage.

If you have already paid off any mortgage on the property or if you bought it outright without the need for a mortgage, the property is said to be “unencumbered” (by a mortgag…

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How to remortgage a buy to let property

If you own buy to let property, and even if it remains subject to a mortgage, you almost certainly have equity tied up in your investment.

There may come a time when you want to unlock a proportion of that equity – to improve your let property, for example, or to expand your investment portfolio. One of the readily accessible ways of releasing equity from a buy to let property is to secure a remortgage.

What is a remortgage?

A remortgage is very simply a new mortgage taken out on a property you already own. The remortgage serves either to replace a mortgage that currently exists on the property or represents a way of borrowing against the property.

As the Money Saving Expert points out in an article last updated on the 4th of February 2020, approximately one-third of all loans on residential property in the UK are remortgages.

You may remortgage a buy to let property in the same way as you may remortgage the home you live in – alth…

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What Credit Score For A Mortgage Is Needed?

What Credit Score For A Mortgage Is Needed? How is your credit score calculated?

It is calculated using the different types of data from your credit report : Minimum Credit Scores There is no official minimum credit score since lenders can (and do) take other factors into consideration when determining if you qualify for a mortgage. This posts look at What Credit Score For A Mortgage Is Needed in more details.

Other factors include type of job you have, how long you have been in your job. What amount of deposit you have. In some cases even the address you live at and how long you have been at the address can affect the decision.

There are things you can do in preparation but of course, it doesn't always work out that way, but if you have the time to do things like check your credit report (and fix any mistakes) and pay down debt before applying for a mortgage, it will likely to make getting a mortgage easier.

Can you still get a mortgage wit…
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What documents do I need to apply for a mortgage?

Let us look at what documents you will need to apply for a mortgage.

What you will need to provide will vary from lender to lender. However we will cover in this article thorough documentation that should be generic in nature and therefore satisfy most lenders and broker requirements.

Buy to let or residential?

The type of mortgage you are applying for whether that be a residential mortgage or a BTL mortgage, will determine in most cases what documents are needed. For BTLs most lenders use the estimated rent as the basis for lending so in these cases often no proof of income will be required. Whereas a residential mortgage is based on affordability and in all cases proof of earnings the lender will ask you to evidence

Identification Documents

The lender or broker will always ask for proof of your name. Typically two forms of ID will be required for this. Usually a passport or driving licence will be OK for name ID

Proof of address i…

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SIC Codes for SPV Buy to Let Mortgages

What are SIC codes?

Limited companies need to be registered at Companies House. When registering a limited company the person who registers the company can choose one or more SIC codes. SIC stands for Standard Industrial Classication. There are hundreds of different codes covering all types of industries and services. This short post will explain which SIC codes are recommended for registered an SPV for a BTL limited company.

Different lenders ask for different SIC codes than each other. However generally as long as you have atleast one of the SIC codes as per below then most mortgage lenders should be OK.

The SIC codes suggested:

68100 – BUYING AND SELLING OF OWN REAL ESTATE68209 – OTHER LETTING AND OPERATING OF OWN OR LEASED REAL ESTATE68201 – RENTING AND OPERATING OF HOUSING ASSOCIATION REAL ESTATE68320 – MANAGEMENT OF REAL ESTATE

Generally as long as you have the above SIC codes registered for your S…

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What amount of fees do mortgage brokers charge?

When using a mortgage broker most will usually charge a fee. There are however some brokers that don't charge a broker fee at all. However the service you get and amount of involvement you get throughout a mortgage application will vary from broker to broker. Paying a fee doesn't necessarily mean that you will get a better service however we have typically found that brokers who do charge fees treat their business seriously and are committed to helping their clients. 

Brokers that don't charge fees often treat their businesses as a part time business and are happy to perhaps work part time or work flexible hours around their family needs. 

There are also a few national mortgage broker companies who have carved their niches and build strong brands around the fact that they never charge a fee. 

How brokers charge fees? Fees can be charged at several different parts of the process. Fee charged on decision in principle - some brokers wil…
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