Does a CCJ affect existing mortgage, loans and credit cards?

bitworried

Hopefully someone might be able to give me an answer to this, have looked on the internet and couldn't find a direct answer, thanks!

It's a possibility that I might get a CCJ soon, I've never had any bad credit before. I have a mortgage that has always been up to date and have held that mortgage for about 7 years, plus a loan (again always been up to date religiously), overdrafts which are within the overdraft limit and have never been over them, plus credit cards which are within their credit limits and always have been. Never had a cheque bounce or anything like that.

I realise that having a CCJ will make it difficult to remortgage in the future and get any future borrowing (that doesn't really matter), but will the lenders I have a mortgage, loan and credit cards with now automatically know that a CCJ has been registered and will they want to change my products or want their money back?

I was hoping that since I'm paying them ok they will be alright with that and wouldn't change anything as why should they?

Also, I am on the standard variable rate on my mortgage at the moment, if I requested a new rate with the same lender would they pick up on the CCJ even if I don't want any more borrowing from them?

There's no way I can afford to pay off the CCJ before it was registered.

Any help would be much appreciated.

Ineedaname

Hi there

I think it all depends on what triggers them to do a credit check with you. I would assume asking for a new fixed rate mortgage with your existing lender would generate a credit check as it is 'new' lending.

bitworried

Ineedaname wrote: »

Hi there

I think it all depends on what triggers them to do a credit check with you. I would assume asking for a new fixed rate mortgage with your existing lender would generate a credit check as it is 'new' lending.

It wouldn't be 'new' lending though would it? I wouldn't be asking for any more money from them. I would be happy to leave it on the standard variable rate for now anyway, if need be.

Surely a credit check is only carried out if you want to increase your credit card limit, increase your overdraft limit etc?

Ineedaname

You would be taking out a 'new' fixed term mortgage though wouldn't you? The bank would surely want to check you out for that?

Hopefully someone with more knowledge about how banks deal with mortgages now will be along to advise shortly. I'm only making assumptions and am being cautious with my suggestion.

bitworried

That's ok, thanks a lot for answering. As I said, being able to take a new deal is not really a priority at the moment, I'm more concerned about if they could call the mortgage in, or my bank ask for my overdraft to be paid back and that sort of thing when and if they twig I have a CCJ. Might not even get that far anyway.

I don't think the lenders are too bothered as long as you are up to date with theirs, if you get behind, then sure they might want to change things then.

LittleMissGiggles123

Whenever we have negotiated a 'new' mortgage deal with our existing lender, they have always carried out a credit check even though we weren't borrowing extra, just changing the deal offered. It might depend on the lender you are with though, we're with Abbey/Santander.

HOLIDAYMAD_2

Without going into much re a CCJ, the principal of getting one is normally because you have defaulted on that lender ie non payment for a period of time, they can not just go for a CCJ on say one missed payment and shouldnt apply for one if you are in a reasonable arrangement , they should also have to issue various letters advising of enforcement action inc a default notice, in addition to that some are actually not enforceable under Credit Consumer law- but that is a whole story in it self and the debt forum would be able to give you real advise on this future CCJ and ways to stop it or defend it etc.

Five years ago a one off ccj wouldnt have made a huge difference to future lending, but today it can be a problem.

However your mortage company will not call in the loan with a ccj , they may just not give you a preferred intrest rate etc, so your not going to lose the home.

What is happening more and more today is lenders are reviewing in time frames peoples credit, so eg you could have a card with Barclaycard , have been a great customer etc and they review it by doing a random Credit Ref check and see that you have defaulted on a another lender, they can actually then say you are a risk and we will withdraw all lending and call in any outstanding debt in full.
Its a protcol all lenders seem to have adopted to support each other .

That happened to me with Amex and Egg, at that point if you cant pay balances in full, they then can hit you with defaults and go for further CCJ's it wont implicate your mortage but can turn a pretty good record into a bad one.

Problem with CCJ's now and this is highly unethical but very common , following a CCJ and regardless of repayment plans they hit you with a interim charging order which turns that debt into a secure debt levied on your property and puts restrictions on future sales etc. Further non payment can bring in the court baliff to seize assets for the debt outstanding.

I had a particulary bad time with lenders doing that.

In essence CCJs can lead to a can of words.

bitworried

It's not a lender asking me for the money, it's a previous landlord, so an individual. As I say, think it's just a load of hot air at the moment. As long as it doesn't affect my mortgage that's the main thing.

HOLIDAYMAD_2

I would get some advise of Shelter, for the time delay re the payment he is wanting and whether he has pursued it , im thinking it could be statue barred, anyway if its some years old he is iunlikley to get much in reality out of county court in respect of a money judgement.
But best to get advise in advance should he decide to pursue, he could also apply via the small claims court, im not sure what implication that has im assuming still a CCJ

If its over 7 years old i would think he has nigh on impossible task of succeeding.

jon_boy75

most of your existing lenders will do periodic 'soft' credit checks on you to assess you for their own product range and the limits they've given you.

based on the results of that check, they could either offer you more products, lower APRs etc, or review your existing products with them.

so they could feasibly ask you to reduce your overdraft or credit card balances, based on the fact you're considered more of a risk to them, in light of the (maybe, possibly in the future) new CCJ

bitworried

HOLIDAYMAD wrote: »

I would get some advise of Shelter, for the time delay re the payment he is wanting and whether he has pursued it , im thinking it could be statue barred, anyway if its some years old he is iunlikley to get much in reality out of county court in respect of a money judgement.
But best to get advise in advance should he decide to pursue, he could also apply via the small claims court, im not sure what implication that has im assuming still a CCJ

If its over 7 years old i would think he has nigh on impossible task of succeeding.

Thanks for that. I've already taken advice as to how to defend it (if it gets as far as them putting in a small claim) and I have a good case, so they might not even win (if it even gets that far). It was good to come on here and find out what might happen if they did win though and I did end up with the CCJ.