If payment of a debt is not forthcoming, a creditor may make a claim under the Consumer Credit Act 1974 through the county court.
This is a civil court so a County Court Summons or County Court Judgment (CCJ) will not result in a criminal record but it will be recorded by the central credit ratings agencies Equifax and Experian who will hold this information to be made available to lenders for credit checks in the future.
The majority of these matters will be sorted out on paper by court staff rather than at a court hearing. When the judgment has been made, details of the amount owed and the rate at which repayments must be made are sent to the debtor. It is possible to request for a reduction in repayments if it will be difficult to maintain.
The result of this can then lead to a bad credit rating which can cause difficulties far into the future when it comes to trying to arrange a mortgage or to get a better deal by re-mortgaging.
Some mainstream mortgage lenders turn down borrowers with a poor credit history which in turn can adversely affect the credit rating further. There are also a number of less well-intentioned companies providing mortgages to those who have past CCJs who will sometimes charge very high fees, extensive pre-payment penalties on the home, or ask for upfront fees to process the loan. These lenders may try to take advantage of borrowers with credit card debts or missed loan repayments because they know that the loan options are limited.
However, fair deals on mortgages and remortgages are available for those with a history of credit problems and our specialist mortgage advisers are experienced in finding the right mortgage for anyone in this kind of situation. If you would like us to help you to find the best deal available for you or for help and advice, please use our Mortgage Enquiry Form below and one of our experts will contact you. Alternatively, you can give us a call on 0800 242 5387.
|Lender||Initial Rate||Duration||Standard Rate||Overall Cost For Comparison||Max Loan To Value||Fee|
|2.59%||2 years||5.69%||5.4% APR||75%||£999|
|2.69%||2 years||4.99%||4.9% APR||75%||£495|
|2.94%||2 Years||5.69%||5.4% APR||75%||£199|
|2.99%||2 years||4.99%||4.9% APR||85%||£495|
|2.99%||3 years||4.99%||4.6% APR||70%||£499|
|3.0%||2 years||5.69%||5.5% APR||80%||£999|
|3.19%||5 Years||4.79%||4.2% APR||80%||£995|
|3.35%||To Jul 2014||4.95%||4.6% APR||75%||£999|
|3.5%||2 years||5.49%||5.1% APR||75%||£595|
|3.84%||2 years||3.94%||4% APR||90%||£499|