Shared Ownership Mortgage with a CCJ

Will I need a larger deposit for a shared ownership mortgage if I have a CCJ?

Yes, you may be required to have a larger deposit with a CCJ on your credit file. It will very much depend on how much the CCJ is for, when it was registered and if it’s satisfied.

For example, if it’s a very small CCJ for a parking fine of £30 or so, some lenders may ignore it altogether – and therefore you wouldn’t need a larger deposit.

For larger CCJs, the lender may require an additional deposit, even up to 15% deposit of the share.

What documents will I need to provide for a shared ownership mortgage if I have a CCJ?

We’d always start by requesting a copy of the shared ownership reservation agreement. That gives us the full details of the shared ownership scheme and what rent will be paid.

We’d also want a copy of the client’s credit report to see the full details of the CCJ and check for any other issues. Once we’ve got those documents, it would just be the full fact-find, proof of ID, proof of income and bank statements, which is the same for any mortgage application.

Can I get a shared ownership mortgage with a CCJ if I’m self-employed?

Yes, self-employed applicants can get a shared ownership mortgage. Being self-employed in itself has no impact on the shared ownership scheme. The only difference is that lenders will request different documents to verify your income.

For self-employed applicants, lenders usually want limited company accounts or tax returns.

Can I buy a bigger share of my home at a later date once my CCJ has been satisfied?

Yes. Most shared ownership schemes do allow you to buy a further share in the house at a later date. This would apply even if the CCJ is still outstanding or if you have paid it off.

It may have been removed from your credit file, if six years have passed, and this would hopefully secure you a cheaper product.

Can I ever fully own a shared ownership home with a CCJ?

Yes, most shared ownership schemes allow you to staircase to full 100% ownership. This option to staircase in the future is not impacted by having a CCJ. Also, if the CCJ has been satisfied or it’s dropped off the credit report altogether, we may be able to secure a cheaper product.

Are there any extra fees for a shared ownership mortgage if I have a CCJ?

Having a CCJ may mean that your product is more expensive to start with. We’d run through the fact-find and get the credit report. Once we’ve reviewed the file, we’ll make a suitable mortgage recommendation to the client. This would set out any fees applicable to the mortgage. If there are any fees at that stage, we’d set those out.

How do I apply for shared ownership with a CCJ? What’s the process?

The very first thing would be to arrange an appointment with a mortgage broker. We would run through a fact-find and get all the details about the client’s income and expenditure.

We’d get a copy of your credit report and all the shared ownership property details, and then make a suitable recommendation. If you’re happy with the figures, monthly payments and fees, we’d get an Agreement in Principle. That involves the initial credit check, and assuming there are no other issues there and the lender’s happy with the CCJ, we can proceed to full application as normal.

What else do we need to know about a shared ownership mortgage with a CCJ?

If you have a CCJ registered against you, send a copy of the credit file to your broker straight away. The lender and the broker then have all that information up front – so we can hopefully secure you a mortgage the first time you apply. Working with a mortgage broker who’s used to adverse credit can certainly help by using their experience.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.