Being taken to court do I need to inform lender

Hut

Started mortgage application. Spent a lot of money up to now. Recieved letter today saying being taken to court. Will contest. No guarantee they will gain ccj and even if will pay it off within 1 month. So do I need to inform lender now? Not on credit file.

amnblog

If they do get a CCJ. It could cost you on the mortgage front - paying it off wont cure the problem.

Hut

Hi my understand is pay in 30 days means no ccj?

On other hand mortgage should be completed well before then. Need to know if fraud to not declare potential ccj.

Foxy-Stoat_3

How much is the debt and whats its for?

Not worth the risk if you haven't paid what you owe.

Mortgage_Mark_2

If you can pay it off within thirty days, why not try and reach a settlement before it reaches court?!

Hut

Hi again thanks for the answers. The reason is I don't agree I owe anything. I have put in that I dispute the charges/amounts and have put in a defence and that may be the end of it! but if the judge decides against me I will then accept it will be better to pay even though I do not believe I am in the wrong just to protect my credit record.

I just am unsure on whether I can legally keep quiet on receiving the court papers or if I need to inform lender before they offer me a mortgage. I am very scared I might lose the mortgage.

Mortgage_Mark_2

I think ultimately if you're at all worried, you need to decide what is more important, the moral point of the contested debt, or getting the mortgage?

If you're going to pay the judgement in full anyway, why not clear now if it helps your chances of your mortgage going through? There is a risk that it could jeopardise the application, albeit small, if you let it go to court and you lose?

Jhoney_2

If you lose, you potentially pay and lose your mortgage.

Have the co sent you enough information to be sure you are correct in your dispute? Have you sent documentation to demonstrate the error to the Court in defence? If it is even 70/30 I wouldn't risk it.

Find out if the company is regulated by someone, get advice there or pay and lodge a dispute with them.

All else is folly unless you like to play the odds.

MJP43

Hang on. Unless the OP loses the case then he won't get a CCJ unless he doesn't pay within 28 days of judgment being made

Surely , if the claim is in the opinion of the defendant spurious then he shouldn't pay just because he is mid mortgage application ?

ACG

You do not need to disclose a potential CCJ on your application.
If you can get your mortgage to complete before court then there is nothing to worry about in the sense of declaring to the lender.

However, it will be on your file for 6 years, will you want to move house/lenders? If so it could cause problems.

Thrugelmir

How much is the debt in question?

What does your credit record show in relation to the debt?