Self-cert mortgages with CCJs options dwindling
The “credit crunch” in the banking industry is affecting the number of products available to people looking for a self-cert mortgage with CCJs. But although the options are dwindling, a good broker can still find them a self-cert mortgage.
With CCJs on their credit records, more people are being turned away by nervous mortgage lenders worried about the so-called “sub-prime” loans crisis in the USA being repeated in Britain. American banks have suffered from a wave of people defaulting on their mortgages.
Many of the borrowers had poor credit records, and the reaction of British banks and building societies has been to cut back on the amount of money they are prepared to lend to people with CCJs or other blips on their payment history. People looking for self-cert mortgages with CCJs – the self-employed and those with no fixed regular salary – are also being singled out by many lenders.
Self-employed being hit hardest
The Daily Telegraph quoted a mortgage broker who said lenders would “tweak their affordability calculations behind the scenes”.
"You'll find that as they tighten their affordability criteria, the self-employed are hit hardest. But this all goes on behind the scenes. You only find out after the event, when a loan you expect to be approved gets turned down," he told the newspaper.
Credit scoring for self-cert mortgages with CCJs
The lenders who have not withdrawn their self-cert mortgage with CCJs products completely score potential borrowers on a range of things like credit history, whether they already own their own home and the size of any deposit they will be providing.
Self-cert mortgages with CCJs, where available, are likely to be more expensive than mainstream loans – which can seem unfair, especially as one in seven people in the British workforce is self-employed. But it is a reflection of the restrictions banks and building societies are placing on themselves as they try and “clean up” their loan books to avoid accusations of reckless or irresponsible lending.
Self-cert mortgage with CCJs a big market for lenders
Of course, one in seven people is still a big market for the lenders – and so there are still products out there for people who want a self-cert mortgage with CCJs. But many of the products will not be readily available or widely advertised – and so finding a good broker who can help in the search is advisable.
Prosper Home Loans have the experience and expertise to obtain the best mortgage to suit your individual financial situation. Whether you are planning your first purchase, moving home, thinking about remortgage or debt consolidation, buying a second home, or perhaps considering a commercial venture, let Prosper help. Prosper has extensive experience in working with specialist self cert mortgage lenders, so if you’re looking for self cert mortgages or bad credit mortgages, email your query to: enquiry@prosperhomeloans.co.uk or telephone: 01424 712333 and find out how Prosper can help you.