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Mortgage with a CCJ

Last updated on 22nd December 2023 by Martin Alexander

If you have a County Court Judgment and are worried about applying for a mortgage, you’re in the right place. Although it isn’t easy, the chances of getting a mortgage with a CCJ are much better than most people think.

While credit issues can make a mortgage challenging, other factors, such as your income and deposit amount, can also support your application, which we’ll explore in this guide.

What is a County Court Judgment (CCJ)?

You’ll receive a County Court Judgment if you fail to repay certain debts. However, this is usually the last resort your creditors will take, following calls, letters and notices chasing the debt.

Having a CCJ on your credit file isn’t to be taken lightly. Although it can make mortgage approval difficult, it can even stop you from opening a bank account and getting a credit card.

Your credit file will have a record of your CCJs, which lenders check each time you apply for a loan, including a mortgage.

How long will a CCJ stay on my credit file?

CCJs stay on your credit file for six years, whether or not you satisfy them. You can speak to a credit referencing agency to get a CCJ removed much sooner if there’s a genuine error. Nonetheless, if a court has issued you with a judgment, there’ll be no other way to remove them.

Can I get a mortgage with a CCJ?

Yes, you can get a mortgage with a CCJ on your credit file. The registration date of your CCJ will have the most influence on whether you’re accepted. CCJs within the last 12 months will make a mortgage challenging, whereas the older it is, the better your chances.

If you have a CCJ, lenders will assess the following:

  • Date of when your CCJ was registered
  • Whether or not your CCJ is satisfied
  • The amount of your CCJ
  • The number of CCJs on your credit report
  • Your mortgage deposit amount
  • The type of mortgage you need (residential or buy-to-let)
  • Other potential issues on your credit report

When was your CCJ registered?

The dates your CCJs were registered are the most crucial factor when applying for a mortgage. Your mortgage chances improve with older CCJs, whereas more recent CCJs will have the opposite effect. For instance, CCJs registered in the last 12 months will make it difficult to get a mortgage.

A CCJ that’s two years old is less relevant than one registered just a few months ago. However, you can still get a mortgage with a CCJ less than a year old.

If your CCJs are over six years old, they’re unlikely to go against your application. Download a copy of your credit file to ensure the dates are correct.

Has your CCJ been satisfied?

Some lenders require you to satisfy your CCJ before applying for a mortgage, whereas others won’t. Satisfying CCJs will improve your mortgage chances, and you’ll also have more lenders to choose from.

What if I have an unsatisfied CCJ?

If you’ve yet to satisfy your CCJ, apply with a lender that doesn’t require CCJs to be satisfied. Our advisors can guide you on which lenders to approach.

It’s easier to get a mortgage with an unsatisfied CCJ if it’s over two years old than one registered within the last 12 months.

How large are your CCJs?

After assessing the date of your CCJ, lenders will calculate its total value. Your CCJ amount can affect your mortgage chances.

The amount holds little relevance if your CCJ is over three years old. If your CCJ was more recent (within the last 12 months), then there may be limits to how much you can borrow.

Some lenders will only lend if your CCJ was below £3000, for instance (in the past three years). The same lenders will only consider a very recent CCJ if the amount is less than £1000.

The value of your CCJ can also impact the amount of deposit you’ll need. If your CCJs total over £3000, you may need a deposit of 30%. Applications with smaller deposits may be approved if your CCJ is less than £1000.

Number of CCJs on your credit report

The number of CCJs you have registered against your name will also affect your mortgage chances. If you have more than two CCJs, you may need a minimum deposit of 25%. Some lenders also require the CCJs to be over a year old.

Some lenders also have a ‘CCJ cap’, meaning lenders won’t lend if you have a certain number of CCJs or exceed a total value. For instance, most lenders restrict CCJs to a maximum of two.

The good news is that not all lenders are the same and may still consider your application, no matter how bad you think your situation is.

Check your credit file to see the exact details of your CCJs, such as the dates, amounts and how you have against you. Lenders will check your credit files, so it’s a good idea to check them beforehand.

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

In all cases, the higher your deposit is, the more favourable lenders will be. There’s less risk for a lender if you have a larger-than-average deposit. Lenders will see you as high risk if you have a smaller deposit and a CCJ.

If you have a 5% deposit, your CCJ will likely need to be over three years old. A 25% deposit can allow you to get a mortgage even if your CCJ was recent. Anything higher than 25% will give you much better options and rates.

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

The type of mortgage you’ll need will also affect your mortgage assessment. Moving home or remortgaging with a CCJ is the easiest of scenarios.

First-time buyers and those purchasing a new build may find it more challenging. A proven track record of paying a mortgage can make an application easier, especially with a CCJ.

You can get a buy-to-let mortgage with a CCJ. You’ll need a 25% deposit, and satisfying your CCJs will give you access to more lenders. Evidence of paying your residential mortgage on time can also support your buy-to-let application.

Read more: How to get a buy to let mortgage with bad credit.

Can I get a mortgage if I’ve had further credit problems?

In addition to a CCJ, further credit issues will make it increasingly difficult to get a mortgage. The extent of your other credit issues will affect how lenders assess you. Late payments are seen as less severe by lenders as opposed to something more severe, such as repossession.

Lenders may still consider you for a mortgage with a CCJ, even if you have other credit issues, such as bankruptcy or applying after an IVA, so don’t be disheartened. You can also improve your credit score, which can help your application.

Our advisors specialise in mortgages with poor credit and work with specialist lenders daily. You can speak to an advisor if you need help with what to do next.

About the author

Martin Alexander
Senior Mortgage Advisor

Martin is a senior mortgage advisor who has held a CeMAP qualification for over 15 years while completing an MBA in Global Banking and Finance.