The number of CCJs registered against consumers in England and Wales fell in 2018 compared to the previous year. There were, however, still more than 1.1 million CCJs registered last year alone, according to Registry Trust.
Insight into your potential clients
Research by Online Mortgage Advisor found that more than 40% of Brits said being declined a mortgage is an embarrassing secret, leaving a fifth of Brits think twice about trying and avoiding pursuing their goals of becoming a homeowner because of outdated myths about what it takes to get approved.
And you don’t need to look too far online to see just how confused people are about their prospects of getting a mortgage if they have CCJs against their name. Here are some extracts from a recent thread on Mumsnet, from mid-February, that is typical of a lot of public sentiment:
“My partner has a CCJ from 1 year ago which was just satisfied this month. He also had another one issued last month but paid it within the 30-day limit so it was settled and will not be on his file. They were both only small, under £1000 each but he had a poor understanding about money and debt which is why it came to this. Needless to say, he has learned the hard way from his mistakes. We are both flipping daily between hope and utter despair. Is it true what everyone says? Are our chances ruined?”
“I had a default from years ago and wasn’t able to get a mortgage for 6.5yrs. A CCJ is considered worse than a default but the result is still the same i.e. no credit and even renting can be problematic as he probably won’t be able to pass the credit checks either.
I should add that I do believe there are lenders out there that will consider those with defaults and CCJs, but I think they need to be at least a couple of years old and you won’t benefit from any good deals, I’m afraid.”
While it can be a little disheartening to read posts like this that clearly demonstrate a lack of understanding from consumers when it comes to the availability of mortgages for people with CCJs, it also presents significant opportunity.
Who dares wins
With over one million CCJs issued in the last year alone, there is a responsibility to brokers to be proactive in marketing to those potential clients to make clear the competitive mortgages available for them.
By identifying this opportunity and these clients, you could reap significant rewards. But more than this – you could make a really positive difference to someone who had previously thought a mortgage was out of reach. That’s great motivation to go to work every morning and find new ways to engage with new clients.
Don’t miss out on more than one million opportunities to grow your business.