People who live in the UK may already know what county court judgments, or ccjs, are. A ccj is a court judgement that is filed against a person for a number of different reasons. The ccj is the court's way of saying that someone didn't pay a debt and now has a money judgement against them. Before giving someone money or credit, many lenders and businesses will check the ccj registry to see if that person is on it. UK ccjs can make it harder to get a mortgage or remortgage for a lot of different reasons.
Creditworthiness is alluded to.
One reason why companies look at mortgages or loans for people with ccjs is that a ccj is a judgement that affects a person's credit worthiness. If someone has a ccj, it means that they were unable to pay back a debt in the past, and the debtor had to go as far as getting a ccj against them. This is why companies do a ccj check: so they can see how good a person's credit is. If that person has a ccj on their record, the lender may think twice before giving them a mortgage or remortgage.
Having to do with future debt patterns
Some lenders look at the ccj registry to find out not only how creditworthy someone is now and in the past, but also how likely they are to pay their bills in the future. A ccj check could help the company decide if the person getting a mortgage or remortgage is more likely to pay back the debt in the future. People who have more than one ccj against them on the registry may find it harder to get a ccjs mortgage or remortgage ccj than people who only have one ccj against them.
Gives the company a 6-year window in which to check the credit.
Companies and mortgage lenders also like to look at the ccj registry because it tells them about the applicant's life over the past six years. Since ccjs stay on a person's record for six years after the debt is paid off, reviewing such a registry will give the company more information since ccjs don't go away right away after the debt is paid off.
Allows companies to look at the risk of lending as a whole.
Lastly, companies that look at the ccj registry to decide whether or not to lend money to a person can look at the overall lending risk they might face if they lend money to that person. Again, people who have more than one ccj may have a harder time getting a loan. The ccj registry can help lenders decide who to lend money to.
Summary
In the UK, lenders often check the ccj registry. It tells companies about the habits of lenders and the debts they haven't paid back in the past. It's important to remember, though, that just because someone has a ccj against them, it doesn't mean they can't get a mortgage or remortgage. Some lenders will give mortgages and remortgages to people with ccjs.
