Those individuals living in the United Kingdom 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 fundamentally the court stating that an individual failed to pay a debt and has received a financial judgment against them. Plenty of 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's plenty of reasons why UK ccjs affect an individual who is trying to receive a mortgage or remortgage.
Alludes to Credit Worthiness
One reason why companies think about 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 historicallyin 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 choose 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 receive 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 in to the past two years of the applicant's life. Since ccjs stay on an individual's record for two 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
Finally, those companies who review the ccj registry to decide whether they ought to lend to an individual or not lets them review the general lending risk which they might encounter ought to they lend to a specific 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.
Summary
The ccj registry is something that lenders consult often in the United Kingdom. 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 although 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.
By: Rashid
Alludes to Credit Worthiness
One reason why companies think about 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 historicallyin 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 choose 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 receive 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 in to the past two years of the applicant's life. Since ccjs stay on an individual's record for two 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
Finally, those companies who review the ccj registry to decide whether they ought to lend to an individual or not lets them review the general lending risk which they might encounter ought to they lend to a specific 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.
Summary
The ccj registry is something that lenders consult often in the United Kingdom. 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 although 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.
By: Rashid
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