Reasons Why County Court Judgments Affect Mortgage Acquisition

Reasons Why County Court Judgments Affect Mortgage Acquisition 1

Reasons Why County Court Judgments Affect Mortgage Acquisition
Those individuals living in​ the​ UK may be familiar with the​ term county court judgments,​ or​ ccjs .​
a​ ccj is​ a​ court judgment which is​ registered against an​ individual for any number of​ reasons .​
The ccj is​ basically the​ court stating that an​ individual failed to​ pay a​ debt and has received a​ monetary judgment against them .​
Many lenders and business entities will research the​ ccj registry to​ see if​ an​ individual is​ on​ it​ prior to​ lending them money or​ credit .​
There are many reasons why UK ccjs affect an​ individual who is​ trying to​ obtain a​ mortgage or​ remortgage.
Alludes to​ Credit Worthiness
One reason why companies consider mortgages with ccjs of​ an​ individual or​ loans with ccjs of​ an​ individual is​ that the​ ccj is​ a​ judgment that relates to​ credit worthiness .​
If an​ individual has a​ ccj,​ this means that they were unable to​ repay a​ debt in​ the​ past and it​ even went to​ such lengths as​ to​ have a​ ccj issued against the​ debtor .​
This is​ why companies perform a​ ccj check,​ so that they may check on​ the​ individual’s credit worthiness .​
If that particular person has a​ ccj under their name,​ the​ lender may hesitate when issuing a​ mortgage or​ remortage to​ the​ debtor.
Relates to​ Future Debt Patterns
Some lenders check the​ ccj registry not only to​ ascertain current and past credit worthiness but future debt patterns as​ well .​
a​ ccj check may help the​ company to​ decide whether the​ individual who receives a​ mortgage or​ remortgage will be more likely to​ repay the​ debt in​ the​ future .​
Those individuals who have multiple ccjs issued against their name may be less likely to​ obtain a​ ccjs mortgage or​ remortgage ccj than those who only have one ccj issued against them on​ the​ registry.
Provides a​ 6 Year Credit Span for the​ Company to​ Review
Companies and mortgage lenders also like to​ review the​ ccj registry as​ it​ gives them some insight into the​ past six years of​ the​ applicant’s life .​
Since ccjs remain on​ an​ individual’s record for six years past the​ repayment of​ the​ debt,​ reviewing such a​ registry will provide additional information to​ the​ company as​ ccj removal is​ not an​ instantaneous occurrence post-repayment.
Allows Companies to​ Review the​ Overall Lending Risk
Lastly,​ those companies who review the​ ccj registry to​ determine whether they should lend to​ an​ individual or​ not allows them to​ review the​ overall lending risk which they might encounter should they lend to​ a​ particular individual .​
Again,​ those individuals who have multiple ccjs may be less likely to​ see a​ loan come their way .​
Lenders can use the​ ccj registry to​ aid them in​ their lending decisions.
The ccj registry is​ something that lenders consult quite frequently in​ the​ UK .​
It provides companies with some insight with regard to​ lender habits and past nonrepayment of​ debts .​
It is​ important to​ keep in​ mind however that even though an​ individual may have a​ ccj against them,​ this does not obliterate all chances of​ obtaining a​ mortgage as​ some lenders offer mortgages and remortgages to​ those with ccjs.

Reasons Why County Court Judgments Affect Mortgage Acquisition

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