Mortgage & CCJ

tifo

Thrugelmir wrote: »

The debt will still need to be declared on the application form.

I and the OP were clearly talking about the credit files in terms of when it comes off not the mortgage application.

Thrugelmir wrote: »

Then people wonder why a lender won't advance them £'000's as a mortgage. Lenders are fully aware that people default on debts. Then in essence use this an excuse to repay slowly and build savings. Using the debt as an interest free loan. Hence why I used the word "reflects". As lenders choose their customers carefully by profiling. With profiling it's possible to categorise the potential borrower. They've more than enough demand to lend without taking any due risk.

Regardless of profiling, which gets done anyway, the point was that lenders see an active or settled CCJ in almost the same way as it is still on the credit files. So it is up to the borrower how they deal with it, whether to leave it on or pay it, then wait 6 years for it to come off their credit files.

Lenders know defaults occur and this is built into their lending and profit.