This page was last updated in July 2022.
Can I Get A Mortgage With A CCJ In 2022?Getting a mortgage can be hard enough, and a CCJ might seem like a major problem. In this article, we discuss whether a mortgage is possible for those with a CCJ. We even consider different types of mortgage plans, such as a shared ownership mortgage, or a student mortgage.
Topics that you will find covered on this page
You can listen to an audio recording of this page below.
What is a CCJ?
A CCJ stands for County Court Judgement. A court gives someone a CCJ if they don’t make payments for their debts.
If you receive a CCJ it means that the courts have decided you do owe the debt. They send you all the details of how much you owe, and the details for payments to clear the debt.
Will a CCJ affect me getting a mortgage?
Getting a mortgage with a CCJ is definitely harder. However, CCJ mortgages are possible. Your best chances for getting a mortgage with a CCJ are with specialist lenders, rather than standard lenders.
How can I get a CCJ mortgage?
Getting bad credit mortgages is always going to be more of a challenge. If you have a CCJ standard lenders may be more reluctant to give you a quote.
This is why our advice is to speak to a broker. A broker can tell you what specialist lenders might be best for your bad credit mortgage.
There are a number of things lenders for bad credit mortgages will consider when forming your quote. These are:
- The date your CCJ was issued
- If your CCJ is satisfied or remains unsatisfied
- The size of your CCJ
- The number of CCJs you have/have had
- The rest of your credit report
Here is a short video that you might find useful.
Can I get a mortgage if I have more than one judgement?
If you have more than one CCJ you almost definitely need to approach a specialist bad credit mortgage lender.
Most lenders won’t want to issue mortgages to those with CCJs issued in the last 12 months. Even specialist lenders, however, are reluctant to give you a mortgage with bad credit if you have had more than 2 CCJs in the last two years.
Remember, there are other things the mortgage provider will consider, too.For example, even if you have not had more than 2 CCJs in the last two years, if the deposit amount you can afford is small they may not give you a quote.
If you have more than one judgement our advice is to put down a large amount for your deposit. Another piece of advice is to make the rest of your credit file look as appealing as you can. To do this, avoid late payments for your bills.
Can you have a good credit score with a CCJ?
CCJs remain on your credit record for 6 months. You will also have to disclose it whenever you are asked for your credit history. So, this bad credit history can cause problems when getting a mortgage.
However, a CCJ doesn’t automatically mean your credit score is terrible. Lots of things impact your credit. So, if you make an effort to keep other aspects of your credit in good check your overall credit score can still be classed as good.
Can you pay to get a CCJ removed?
You can apply for cancellation of a CCJ, yes. You can do this if you pay off the debt within a month of the date the CCJ was registered.
Once you have a settled CCJ, you can apply for cancellation of the CCJ. You must fill out ‘Court Form N443’ and send it off with proof of payment.
It will cost you £15 to apply, and if successful the courts will issue you a ‘certificate of cancellation’.
If you pay off the CCJ a month or more after the date the CCJ was registered, you cannot have it removed. You can, however, apply for a ‘Certificate of Satisfaction’ instead.
The drawback of a certificate of satisfaction is that it continues to show up in your credit history. Therefore, it makes getting a good mortgage deal much harder.
Do debt management plans work for CCJs?
No, debt management plans are not legally binding agreements. They are informal arrangements between you and your creditor for non-priority debts. Typically they are used for unsecured loans rather than secured loans.
You could take out a debt management plan if you have a CCJ. This can give you help to buy as it can help you manage your other debts. However, you cannot add your CCJ to your plan.
Can you get a loan with a CCJ?
Your credit issues can make getting a loan harder, just like getting a mortgage with a CCJ is.
Many standard lenders might reject your application, because of your current credit issues. Even if your credit issues are in the past, they might still appear on your file and normally need to be disclosed.
So, your best chance of getting approved for a loan is with specialist lenders.
Do you have to declare a CCJ after 6 years?
Yes, you will always need to disclose your CCJ to a lender if asked.
After 6 years the CCJ is taken off of your credit file. But, mortgage lenders often ask lots of additional questions about your past credit situations. This is when you may have to reveal whatever number of CCJs you have had.
If you fail to reveal your previous CCJ, no matter how long ago it was, you could find yourself in a lot of trouble.
We recommend speaking with a professional mortgage broker that is regulated by the financial conduct authority if you are unsure if you have to disclose a CCJ.
How much does a CCJ affect your credit rating?
A CCJ typically costs a borrower 250 points off their credit score. This can be detrimental when trying to buy a home.
Moreover, most people receive a ‘default notice’ from their lender before they get a CCJ. The default notice is actually worse than the CCJ itself.Typically, it means a deduction of 330 points.
However, the exact amount by which they affect your credit depends on other factors, too.
For example, as the CCJ ages the impact it has on your credit weakens. So, the more years ago the CCJ was, the less detrimental it is to your credit status.
Can I get a mortgage once I have satisfied my CCJ?
You will find better deals when you are applying for a mortgage for your home if your debt is cleared. Make sure you have the official ‘Certificate of Satisfaction’, to prove the debt is gone to the lenders.
Furthermore, if you are self-employed, make sure you can give sufficient income evidence. Self-employed workers are often denied a mortgage for this error.
When will my CCJ expire?
6 years is the length of time the CCJ will be deemed as ‘unsatisfied’ for. During this time, it can be seen on the Register of Judgements, Orders, and Fines.
It will also be on your credit record for these 6 years, potentially giving you bad credit.
After 6 years the CCJ is ‘expired’ and taken off of both of these. However, sometimes mistakes are made. So, we recommend checking yourself that your debt is no longer on these records. This is because, if they are still there, they can negatively impact your mortgage application.
How can I see if I have a CCJ?
If you notice yourself getting rejected for financial products such as secured loans and mortgages, a CCJ may be why.
You should see if your name is on the Register of Judgements, Orders, and Fines, as anyone with a CCJ is listed here. This is not a free service, but only costs between £6-£10.
Another thing you can do is have a credit check. You can have up to 3 free credit checks a year, so this method avoids the fee.
Remember, though, there are often many other reasons why you might be seen as a risk by a mortgage lender and get rejected for a mortgage.
This is why we advise analysing your credit report. This will show if anything else on your credit file is giving you bad credit and preventing your mortgage.
What deposit will I have to give for my bad credit mortgage?
If you are applying for a bad credit mortgage because of your CCJ, you want to put down as big a deposit as you can.
This is no different to a standard application to get a mortgage. Lenders will give you better mortgage deals if you can give a higher deposit for your mortgage.
If you want to make deposit payments of 5% then your CCJ probably needs to have been issued at least 3 years ago to get a mortgage.
If you want a mortgage with bad credit within 12 months of receiving your judgement, you could need a deposit of 25% or even more.
If you need help with deposits for mortgages with bad credit, get advice from an expert.
With a CCJ, mortgage applications are even more confusing. The amount mortgage brokers charge is often recuperated in the money and time they save you on your mortgage!
Will my CCJ affect the loan to value of bad credit mortgages?
Loan to value (LTV) is the percentage of the property value lenders are willing to loan you for your mortgage. Some lenders will have rules around the size of our CCJ and the LTV they will give you for your home. They will also consider the age of your judgement.
Let’s say you want to buy mortgages with an LTV of 85%. If your CCJ was issued in the last 12 months, it probably needs to be for a value of £1000 or less. Otherwise you might not get accepted for this mortgage type.
If your CCJ is older, say 12 months to 24 months old, it should be for an amount of £2500 or less. If not, you might have to accept a lower LTV for your bad credit mortgage.
Once your CCJ is over 2 years old we find that lenders do not really consider it’s amount. Once it is six years old, it will expire. This makes getting home mortgages much easier.
Remember, lenders consider other elements of your credit file, too. So, avoid late payments on bills and secured loans.
Does the value of my CCJ make a difference?
The size of the CCJ is often linked to the age of the CCJ. This is because people pay off the debt over time, so the older it is the lower the debt (normally).
Some lenders will only accept CCJs that were issued a certain number of years ago when applying for a mortgage. Other lenders might consider the size of the CCJ and the age of this county court judgement.
A general rule of thumb is that the smaller the CCJ the more chance you have of being accepted for a mortgage with a CCJ. Some people have even been accepted for mortgages just two years after receiving a CCJ.
So, our advice is to never write off your mortgage application if you have a CCJ. Instead, speak with an advisor, as these experts can explain the best way for you to get a mortgage and what kind of deal you can expect from lenders.
Can first time buyers get mortgages with a CCJ?
If you are a first time buyer hunting for mortgages, bad credit can be problematic. However, when it comes to mortgages, bad credit has a similar impact regardless of how many times you have bought a house.
First time buyers can still find a lender for mortgages as long as their previous bad credit is resolved.
Can I get equity release with a CCJ?
The simple answer is ‘Yes” you can. You will, however, be expected to declare the CCJ when you make your application, as by not doing so, you run a high risk of rejection.
Will bad credit stop me from getting a buy to let mortgage?
There are many types of mortgages; buy to let, shared ownership, self employed mortgages, etc. A buy to let mortgage is still possible, even with bad credit.
We recommend getting advice from a mortgage advisor before you approach a lender for buy to let mortgages. They can help you find specialist lenders that are more likely to accept you for buy to let mortgages.
Can I still apply for the right to buy scheme?
The right to buy scheme is something the government offers to those living in social housing. These mortgages (right to buy) give tenants a discount on the property. The discount makes mortgages cheaper, so tenants can afford the payments and become home owners.
As with other types of mortgages, a CCJ can make a mortgage harder to get. Before you apply for this mortgage scheme, you should get advice from a mortgage advisor. They can explain the likelihood of you being accepted for the mortgage.
If you are unlikely to get accepted for the mortgage, they can also give you tips to improve your application.
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