A CCJ remortgage is a type of remortgage for people who have a County Court Judgment (CCJ). A County Court Judgment is when a judge rules against a person in a case that has a monetary value. This means they have a bad debt, which shows up on their credit report. This can often hurt more than a simple mark on a credit report for bad credit. But there are lenders who focus on remortgaging after a CCJ.
When a homeowner gets a new loan to pay off their old home loan, this is called a "remortgage." A homeowner would do this to get a better interest rate, which would save them money.
A CCJ is a very big deal. If the debtor doesn't pay the CCJ, they could have trouble with their home. The creditor can ask for a lien to be put on the house. If the debtor still doesn't pay the CCJ, the creditor can take the home as payment.
A CCJ remortgage can help a person get rid of the CCJ, which is a good reason to get one. The homeowner could remortgage their home to get more money each month because their monthly payments would be less with a lower interest rate. They could pay the CCJ with the extra money they are saving.
Many lenders know what's going on and are willing to help someone who has been having trouble with money. But they might not be able to find a good enough interest rate. This is especially true if the person who bought the home did so when they had good credit. They might have to stay with their rate if it's the best they can get.
Most of the time, a CCJ remortgage will require a lot of work from the home owner. They will have to show that they make enough money and can pay off the debt. This is the most important thing a lender will look at when deciding whether to extend a loan or not. The lender will probably do a rough check on this. If you didn't have a good way to make money, that would be a big red flag and most likely mean you wouldn't get the loan.
Lenders who do CCJ remortgages are really taking a lot of risks. A CCJ means that a court has found that a person did not pay their debts. But home loans are often a very different kind of debt than other kinds. Because the home is used to back the loan. If the homeowner doesn't pay the debt, the lender can just take the house and sell it to get their money back. The value of property goes up as it gets older, not down. Because of this, it is the best thing to use as collateral for a loan. The person who lent the money will almost certainly get it back. This is why CCJ remortgage loans are not looked at as carefully by many lenders.
You shouldn't mess around with a CCJ. It's a great deal if a person can get a CCJ remortgage loan to help pay off their CCJ. They will not only be able to save money on their home purchase, but they will also be able to clean up their credit record.
