Adverse Loans & Mortgages Terminology

Adverse Credit

If a borrower has a history of poor credit usage then this is described as Adverse Credit. Poor Credit history can include County Court Judgements(CCJ), Bankruptcy, Mortgage arrears or any late payments on credit arrangements.

Arrears

This describes the amount the borrower is behind in his mortgage repayments schedule. The amount is usually measured in either pounds or months.

Bankrupt

A Corporation, Firm or individual who, via a court proceeding, is relieved from paying all debts once assets have been surrendered to an appointed third party designated by the court.

County Court Judgements (CCJ)

An adverse ruling by a County Court against a person who has not satisfied their debt payments with their creditors. Once the ruling has taken place it will be recorded against the persons credit history and will appear every time a credit search is done for the next seven years. If a person has a County Court Judgement against them it will have to be satisfied before they can get a mortgage. They will also find that the mortgages they can get will be at a higher interest rate.

Default

Failure of an individual to make payments on a mortgage at the correct time or to not comply with the mortgage companies requirements.