Good
vs Bad Credit
A
county court judgment is also known as a CCJ or CCJs.
A county court will make a ruling against the
person whom has failed to make their monthly payments
and it will be registered on their credit record as
a county court judgment. This may remain on their record
for a long six years but after three years most lenders
may potentially generally ignore them if the person
has shown since that they are a good credit risk by
paying their debts on time in full.
Adverse
lenders dealing with sub prime mortgages may grade the
interest rate charged to the mortgage on several factor,
the fewer and smaller the CCJs' are the more favourable
the lenders will be towards lending at a lower rate.
Also the age of the CCJ will be a governing factor,
if the amount is small, satisfied and more than twelve
months old some high street lenders might consider the
case and so then it would be on a prime rate.
Because of this if a remortgage was required it maybe
worth considering if the case criteria was suitable
to wait until the CCJ was 12 months old in order to
get a low prime interest rate which often comes with
help with costs (valuation and legal fees) and lower
and shorter early repayment charges and tie ins. Often
a lender may ask for the CCJ to be satisfied before
giving an advance.
CCJs
are sometimes given due to a dispute on a credit account
whereby there is a disagreement with the company which
leads to missed payments. For example it could be regarding
a disputed amount to be paid. This can sometimes be
just poor administration but people often make the mistake
of refusing to pay the company out of principle. This
is short sighted for it is more efficient to settle
your debt first to avoid a county court judgment and
then try and resolve the dispute, even if you are convinced
you are right and the company is at fault. This would
avoid unnecessarily getting a poor credit history. Impaired
credit can cost you a lot of money.
The
following APR relates to the above products only.
THE OVERALL COST FOR COMPARISON IS :-
8.9%
APR
The actual rate available will depend upon your
circumstances ask for a personalised illustration. |
As
mortgage brokers we have access to the sub prime lenders
from the market as a whole and may be offered special
exclusive deals only available to mortgage advisers,
so please contact us
for friendly assistance.
