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.
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