Mortgage With CCJ – Is It Possible?

Mortgage with CCJ

August 2022 

Mortgage With CCJ – Is It Possible in 2022

If you are trying to get on the property ladder and find your dream home and just starting out in the mortgage application process, having a CCJ (County Court Judgement) or other adverse credit events on your record can feel prohibitive. 

You might find that it is more difficult to get approved for a mortgage and may have to pay a higher interest rate. Some mortgage lenders may not consider lending to you at all if you have a CCJ.

However, it is possible to procure a mortgage with a CCJ on your record, although it will likely be more difficult than if you had a clean credit history. 

This article will give you advice on how to get the right mortgage deal for you.

Topics that you will find covered on this page

You can listen to an audio recording of this page below.

What is a County Court Judgement (CCJ)?

A County Court Judgment (CCJ) is a type of court order that states you owe money to someone. This could be because you haven’t paid rent, bills, or an outstanding debt.

Having county court judgements on your record can make it harder to borrow money as mortgage lenders will consider you to be a higher-risk borrower.

This is because they will think you’re more likely to default on the loan.

What happens if I get a CCJ?

If you get a CCJ, you’ll usually have 30 days to pay the amount you owe. If you pay the debt in its entirety (including any interest and court fees) within this period, you will not have a CCJ recorded against you.

If you are in financial difficulties, the court could allow you to pay off the debt in instalments. However, if you take no action, you will receive a County Court Claim Form. If you do not respond to this, you will be ordered to pay the amount in full immediately.

If you don’t pay the amount within 30 days, the CCJ will appear on your file and can stay there for six years.

The CCJ will also be visible to any potential lenders who carry out a credit check on you.

How long will a CCJ stay on my credit file?

A CCJ will be recorded on your file for six years.

However, it will have less of an impact the longer ago it was issued.

For example, if you had a CCJ five years ago and have since managed your finances well, this will be viewed more favourably by lenders than if you had a recent CCJ registered within the last year.

How can I find out if I have got a CCJ?

If you’ve been to court and a judge has ruled that you owe someone money, you will have been sent a ‘county court judgement’.

The most straightforward way to find out more about your credit record is to contact one of the main credit reference agencies and ask to see a copy of the information they hold on you.

You can also check the Register of Judgements, Orders and Fines for England and Wales to see if you have a CCJ recorded against your name. 

Can I get a mortgage with a CCJ?

It is possible for you to secure a mortgage offer with a CCJ on your record, although it will likely be more difficult than if you had a clean credit history. You can even remortgage with a CCJ.

The likelihood of being approved will depend on the mortgage broker. 

Mortgage advisors will be able to advise you on your specific circumstances, but in general, high Street lenders are less likely to approve CCJ mortgages, but CCJ lenders or specialist lenders will have different lender criteria and be more lenient towards adverse credit histories.

However, you generally need to wait for bad credit marks to be removed from your file before a mortgage broker will consider your application.

Your likelihood of being approved for a mortgage will depend on a number of factors.

ccj mortgage

How many CCJs do you have?

If you have multiple CCJs, this will make it harder to find a mortgage lender as it shows that you have a history of not paying your debts.

How much do you owe?

The size of the debt will also be a factor in whether or not you’ll be approved for a mortgage.

For example, if you have a CCJ for £500, this is less likely to impact your chances of being approved for a mortgage than if you had a CCJ for £5,000.

"A County Court Judgment (CCJ) is a type of court order that states you owe money to someone. This could be because you haven't paid rent, bills, or an outstanding debt."

When was the CCJ issued?

As we mentioned earlier, the longer ago the CCJ was issued, the less impact it will have on your ability to find a mortgage lender.

If you’ve had a CCJ for a few years and have managed your finances well since then, this will be viewed more favourably by lenders.

What is your credit score?

Your credit score is a number that gives lenders an indication of how likely you are to repay a loan.

It’s based on information in your credit history, such as any CCJs, defaults, or late payments.

The higher your credit score is, the more favourable you will look to potential lenders.

You can check your credit score for free with online services like Experian.

‍ mortgage with a ccj

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Has your CCJ been satisfied?

If you’ve paid off the CCJ in full, this will be recorded on your file as a satisfied CCJ and will show lenders that you’ve managed to pay off your debt.

This will make it more likely that you’ll be approved for a mortgage than if you had an unsatisfied CCJ.

What can I do if I have a CCJ and want to get a mortgage?

If you have a CCJ and want to apply for a mortgage, you should consider consulting CCJ mortgage specialists or a senior mortgage advisor who can provide mortgage advice for your situation.

There are also some easy steps you can take to improve your chances of being accepted:

  • Double check your credit report details to see if there any errors which you can dispute
  • Make sure you’re on the electoral roll
  • Ensure that you pay all your bills and debts on time and make sure any other credit agreements are up to date. Close any credit accounts you have but no longer use.
  • Get a debt management plan
  • Try to reduce your overall debt burden
  • Save up for a larger deposit
  • Consider using a guarantor
  • Consult specialist lenders or CCJ mortgage lenders 
  • Use a bad credit mortgage calculator to find out exactly what your situation is
‍ ccj mortgages

Do I need to satisfy my CCJ before I can apply for a mortgage?

No, you don’t need to satisfy your CCJ before you apply for a mortgage.

However, as we mentioned earlier, if you have paid off the CCJ in full, this will be recorded on your file and will show mortgage brokers that you’ve managed to pay off your debt.

This will make it more likely that you’ll be approved for a mortgage.

If you’ve paid your CCJ but it doesn’t show as satisfied on your credit report, you can contact the court that issued the CCJ and ask them to update the Register of Judgements, Orders and Fines. For a small fee, they will provide a certificate of satisfaction which you can show to a prospective lender.

What type of mortgage can I apply for with a CCJ?

The type of mortgage for which you can apply will depend on your individual circumstances.

If you have a small CCJ, you may be able to apply for a ‘standard’ mortgage from a high street lender.

If you have a larger CCJ or multiple CCJs, you may need to apply for a ‘sub-prime’ mortgage from a specialist lender.

What is the interest rate on a mortgage with a CCJ?

The interest rate on your mortgage will depend on a number of factors, including your specific credit issues, the size of your deposit, and the type of mortgage you apply for.

If you have a small CCJ, you may be offered an interest rate that is only slightly higher than the standard rate.

If you have a larger CCJ or multiple CCJs, you may be offered a higher interest rate, as you will be seen as a higher risk borrower.

‍ remortgage with a ccj

How much deposit will I need if I have a CCJ?

If you have a CCJ, you may find getting a mortgage more difficult with a high loan-to-value ratio (LTV).

This means that you may need to put down a larger deposit because of your poor credit history.

For example, if you wanted to purchase a property worth £100,000 and had a 10% deposit, this would be £10,000.

However, if your LTV was 95%, you would need a deposit of £5,000.

Remember, you will probably also need to pay broker fees when you apply.

How much can I borrow if I have a CCJ?

The amount which you can borrow will depend on a number of factors, including your income, outgoings, and the size of your deposit, as well as which mortgage brokers you consult.

If you have a CCJ, you may find that you can borrow less from a traditional mortgage provider than if you had a clean credit history.

This is because lenders will view you as a higher risk borrower and may be concerned that you could struggle to make the repayments on your loan.

Can I get a mortgage if I have a CCJ and am self-employed?

It is possible to secure a mortgage if you are self-employed and have a CCJ. However, it may not be easy to find a lender who is willing to offer you a loan. 

You may be required to provide additional documentation, such as your tax returns, to show that you can afford the repayments.

ccj mortgage lenders

Can I get a mortgage if I have a CCJ and am on benefits?

It is possible to procure a mortgage if you are on benefits and have a CCJ. However, it may be more difficult to find a lender who is willing to offer you a loan.

You may also be asked to provide additional documentation, such as your benefits award letter, to show that you can afford the repayments.

I have a CCJ, but my partner doesn’t – can we still get a mortgage?

Getting a mortgage can be less difficult if only one person in the couple has a CCJ. However, it could be more difficult to find a lender who is willing to offer you a loan.

Can I still apply for the right to buy scheme?

You may still be able to apply for the right to buy scheme if you have a CCJ. However, you are less likely to have your mortgage application approved if your CCJ is less than 12 months old.

Can I get a Help to Buy mortgage?

If you have a CCJ, you will not be eligible for a Help to Buy mortgage. This is because the scheme is not available to borrowers with a bad credit history.

What other options do I have if I can’t get approved for a mortgage because of my CCJ?

If you are finding it impossible to get approved for a mortgage because of your CCJ, there are a number of other options you could consider, such as taking out a secured loan from a mainstream lender.

Alternatively, you can compensate for adverse credit by trying to rebuild your credit score.

County Court Judgement

Negotiate with your creditors

You could try to agree on a repayment plan with your creditors. This could help you to pay off your debt over a longer period of time and improve your credit score.

A bad credit loan

You could also consider taking out a bad credit loan. A loan specifically for those who have been refused credit elsewhere could help you to consolidate your debts and pay them off over a longer period of time while you improve your credit rating.

A ‘bad credit’ credit card

You could also consider using a credit card to help you rebuild your credit rating and compensate for missed payments in the past.

Showing that you have paid money on time on a credit card and in full will also help to improve your credit record. You should also make ensure that you are on the electoral register, as this will show lenders that you are a responsible borrower.

Consider a bad credit mortgage

If you have a CCJ and are struggling to get approved for a traditional mortgage, you may want to consider other options on the mortgage market.

Bad credit mortgages are designed for people with adverse credit circumstances who may find it difficult to get approved for a standard mortgage.

There are a variety of mortgage products available from bad credit mortgage lenders and specialist lenders, so it’s important to compare your options and find the best CCJ mortgage for you.

Is there anything else I need to know about getting a mortgage when I have a CCJ?

If you’re considering applying for a mortgage with a CCJ or a bad credit rating, it’s essential to remember that each application you make will leave a ‘footprint’ on your credit status. 

If you make too many applications in a short space of time, you can end up looking like a risky borrower (even if you have a good credit rating) and may damage your chances of getting mortgage approval on a loan.

It is, therefore, a good idea to check your credit report in advance and ensure there are no errors that could prevent you from being accepted for a mortgage.

You can also use a ‘soft search’ tool to see which lenders are likely to accept your mortgage application without leaving a footprint on your credit file.

Applying for a mortgage with a CCJ in the United Kingdom doesn’t have to be as daunting as it may seem – there are plenty of mortgage deals available; it’s just about finding the right mortgage for your circumstances.

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Learn More About Mortgages In The UK

How do mortgages work in the UK?

Buying a home or land is expensive. A mortgage is a financial product that helps people purchase their own home or land.This is especially true for a first time buyer, as it might be the only route onto the property ladder.

The minimum credit score for a mortgage

ou can still be approved for a mortgage to buy a property if you have a poor credit score. However, someone with a poor credit score will probably have a higher interest rate than someone whose credit score is good. Buyers with a low credit score may also need to pay a bigger deposit.

fixed term Contract Mortgages

A fixed term contract is a way of describing certain types of employment. If your current employment contract is due to end after a certain period of time, or after a specific piece of work is complete, you are likely on a fixed term contract. 

how long does a mortgage application take?

After sending off the final application waiting for the decision can be frustrating. Many prospective homeowners ask ‘how long does it take?’ but the truth is the mortgage approval process is always different for each customer.

how long does conveyancing take?

The entire conveyancing process will normally take anywhere between 8-12 weeks, however you should be prepared for this to take much longer depending on your circumstances and wider factors. This articles explores what the timescale involves.

Mortgages if You are bankrupt

There is no hard and fast rule when it comes to what lenders will accept your mortgage application if you want to get a mortgage after bankruptcy. They will lend to discharged bankrupts and consider each case individually. 

what stops you getting a mortgage?

Everyone wants to get the best deal when it comes to buying a home and getting a mortgage when they buy a home. However, being too ambitious can lead to your application being rejected. 

how much do mortgage advisors charge?

Fees for mortgage brokers can be off-putting. A mortgage is an expensive financial product, and often buyers want to save as much money as possible. This might limit their options when it comes to using a mortgage broker.  However, not everyone advisor charges a fee.

IVA Mortgage

When you have an IVA, mortgage acceptance is still possible. However, involuntary agreement mortgage lenders can be hard to find. Typically, a high street company will be more less keen to give you a mortgage. 

Article author

Katy Davies

I am a keen reader and writer and have been helping to write and produce the legal content for the site since the launch.   I studied for a law degree at Manchester University and I use that theoretical experience, as well as my practical experience as a solicitor, to help produce legal content which I hope you find helpful.

Outside of work, I love the snow and am a keen snowboarder.  Most winters you will see me trying to get away for long weekends to the slopes in Switzerland or France.

Email – [email protected]

Frequently Asked Questions

What is a County Court Judgement (CCJ)?

A County Court Judgment (CCJ) is a type of court order that states you owe money to someone. This could be because you haven’t paid rent, bills, or an outstanding debt.

Having county court judgements on your record can make it harder to borrow money as mortgage lenders will consider you to be a higher-risk borrower.

What happens if I get a CCJ?

If you get a CCJ, you’ll usually have 30 days to pay the amount you owe. If you pay the debt in its entirety (including any interest and court fees) within this period, you will not have a CCJ recorded against you.

How many CCJs do you have?

If you have multiple CCJs, this will make it harder to find a mortgage lender as it shows that you have a history of not paying your debts.

I have a CCJ, but my partner doesn’t – can we still get a mortgage?

Getting a mortgage can be less difficult if only one person in the couple has a CCJ. However, it could be more difficult to find a lender who is willing to offer you a loan.

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