Self-cert mortgages with CCJs: put the bonus to good use
It might be tempting to splash out on a holiday or other treat, but there are strong arguments in favour of putting bonuses and extra-large pay-cheques towards paying off self-cert mortgages with CCJs.
Borrowers with self-cert mortgages with CCJs on their credit records are likely to be increasingly and perhaps unfairly affected by changes mortgage lenders are making to their products.
Benefits of overpaying self-cert mortgages with CCJs
People with self-cert mortgages with CCJs in their credit history who are coming to the end of a fixed-rate deal, or likely to be moving in the near future, may find they have a limited option of products available to them. And the self-cert mortgages they are offered could well have punishing charges or interest rates attached.
The best way to combat this if possible is to overpay wherever possible. People with self-cert mortgages with CCJs often have the flexibility to make larger payments towards their mortgages when they can afford to do so, and that can bring the following benefits:
- Reduce the amount of interest payable
Making an overpayment brings down the total amount of interest payable over the lifetime of a mortgage. Borrowers with self-cert mortgages with CCJs are often charged interest at a higher rate than mainstream borrowers so overpayments can save them even more money - Bring down future payments
Overpaying a mortgage can bring down payments, making the mortgage more affordable. This can free up spare cash and reduces the chances of mortgage defaults in the future something no-one with a self-cert mortgage with CCJs wants - Increase home equity
Making extra payments to a mortgage increases the value of the property that you actually own protecting you against future fluctuations in house prices or interest rates. Having 10 or 20 per cent equity in a property can also mean you get better self-cert mortgage deals in future even with CCJs on your credit record - Improve your credit score
The faster you pay off any borrowing, the faster your credit score will improve. For someone with a self-cert mortgage with CCJs in their past, this can make a huge difference to the size of mortgage they are offered and how expensive their repayments are.
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 youre 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.