If you have a County Court Judgement (CCJ), a registered default, missed payments or any other form of adverse credit on your file, you may be wondering whether remortgaging in Derby or Derbyshire is possible. The honest answer is yes, it often is, but the options available to you depend on the specifics of your credit history and working with the right broker makes a real difference.

What is a CCJ and how does it affect a remortgage?

A County Court Judgement is a court order issued when someone fails to repay a debt. It stays on your credit file for six years from the date it was issued. High street lenders will typically decline a remortgage application if a CCJ appears on your file within the past three years, and many will decline older ones too.

Specialist adverse credit lenders take a different view. They assess CCJs on a case-by-case basis, looking at:

  • The age of the CCJ. A CCJ that is three or more years old is viewed more favourably than a recent one.
  • Whether it is satisfied. A paid-off CCJ carries much less weight than an outstanding one.
  • The value of the CCJ. A single small CCJ is treated differently from multiple large ones.
  • Your loan-to-value ratio. The more equity you have in your Derby property, the more options become available to you.
  • Your income and affordability. A strong, stable income can offset some of the risk in a lender eye.

Important: If your CCJ is satisfied, make sure this is recorded correctly on your credit file. Contact the creditor and the credit reference agency if needed. A satisfied CCJ is treated much more favourably than an outstanding one.

What about registered defaults?

A default is registered when you fail to make payments on a credit account and the lender closes the account. Like CCJs, defaults stay on your credit file for six years. The same principles apply. Age, whether it is satisfied and the amount all matter to lenders.

Some specialist lenders will consider applications where defaults are over twelve months old and satisfied, over twenty-four months old even if unsatisfied, small in value (typically under GBP500), or related to utility bills or mobile phones rather than mortgage or secured lending.

A default on a previous mortgage or secured loan is viewed most seriously by lenders and narrows your options, though it does not necessarily make remortgaging impossible.

Missed payments and late payments

Not all credit issues are as severe as CCJs and defaults. Missed or late payments appear on your credit file but are assessed differently by different lenders. Recent missed payments are more damaging than historical ones, and a pattern is more concerning than an isolated incident.

Many Derby homeowners with a handful of missed payments from several years ago can still access competitive remortgage rates through our specialist lender panel.

Debt Management Plans

If you are currently in a Debt Management Plan or completed one within the past few years, remortgaging is still possible in some cases. Lenders will want to see that your DMP is managed consistently and that your overall financial situation is stable. This is a specialist area and one where the right broker genuinely matters.

How loan-to-value affects your options

Your loan-to-value ratio has a significant bearing on what lenders will consider when you have adverse credit. The more equity you have in your Derby home, the more options are available.

  • Below 60 per cent LTV. The widest range of adverse credit lenders available.
  • 60 to 75 per cent LTV. Good options still available with the right lender.
  • 75 to 85 per cent LTV. Options narrow but applications are still possible.
  • Above 85 per cent LTV. Very limited options with adverse credit. Specialist advice is essential.

What to do before applying

  1. Check your credit file. Get a report from Experian, Equifax or TransUnion. Look for errors, outdated information or accounts that should be marked as satisfied.
  2. Satisfy any outstanding CCJs or defaults. If you can pay off outstanding adverse credit items, do so and ensure the satisfaction is recorded on your file.
  3. Avoid new credit applications. Each application leaves a hard search on your file. Avoid applying for new credit in the months before your remortgage application.
  4. Speak to a whole-of-market broker. Going directly to a high street lender with adverse credit and being declined leaves a hard search on your file, making subsequent applications harder. A broker identifies the right lender before any application is made.

Our approach: We review your full credit position before recommending any lender. We only submit applications where we have a high degree of confidence in the outcome, protecting your credit file in the process. Call 01332 300300 for a confidential, no-obligation conversation.

Will I pay a higher rate with bad credit?

In most cases yes. Adverse credit remortgage rates are typically higher than standard rates, reflecting the additional risk that specialist lenders take on. The difference may be smaller than you expect, particularly if your credit issues are historical and your LTV is favourable. In almost every case, a specialist adverse credit rate will still be cheaper than remaining on your lender SVR.

As your credit file improves over time and adverse credit items age or drop off, you will be able to access better rates at your next remortgage. We plan for that from day one.

Call us on 01332 300300 or complete our enquiry form. Tick the poor credit box and our specialist advisers will handle your case personally.