Can you Get a Mortgage with a CCJ?


Applying for a mortgage with a CCJ can be a complex process since there are so many different factors lenders use to assess your application. However, this doesn’t mean it is impossible to obtain a mortgage. 

At Go2Mortgage, we pride ourselves on helping individuals get on the property ladder, no matter what kind of financial situation they’re in.

What is a County Court Judgment (CCJ)?

A CCJ is a court order given to you if you owe someone, usually a creditor, money. 

You will receive information about your CCJ in the post, at which point you can choose:

  • To pay back the full amount straight away;
  • Ask to pay later in instalments;
  • Dispute the claim or amount owed;
  • Claim against the creditor.

If you ignore a CCJ or don’t meet the terms of it, the courts may take more serious action against you.

Can you pass a credit check with a CCJ?

Yes, you can still pass a credit check with a CCJ. If you paid off your CCJ immediately, then it won’t show on your credit file, although any defaults that led up to your CCJ will be visible. 

Having a CCJ on your file will lower your credit score, but this doesn’t mean you won’t pass a credit check and many applicants with poor credit scores are still able to get mortgages. You will likely have to meet other specific criterias though, in order to obtain a mortgage. 

Does a CCJ stop you from getting a mortgage?

No, you can still get a mortgage even if you have a CCJ, but it can be harder to obtain than it would be if you had a good credit score. However, getting a mortgage with a CCJ does depend on several factors. 

One of the key factors with success is how recently the CCJ was registered. Typically, the older it is, the higher chance of success you will have.

If you have more than one CCJ, this can make it even more difficult to get a mortgage since a limit of late or missed payments will reduce your mortgage options.

Can you get a mortgage with a satisfied CCJ?

Yes, if the CCJ has been marked as satisfied, you will have an even better chance of getting a mortgage. 

As long as you have a regular income, and no other serious issues with your credit history, there should be no reason as to why you couldn’t get a mortgage with a satisfied CCJ. 

Can I get a joint mortgage with a partner if I have a CCJ?

It can be difficult to get a mortgage with your partner if you have a CCJ, but this doesn’t mean it is impossible and it can all depend on how severe recent credit issues are. 

A lender may decline anyone who’s had a CCJ in the last 12 months, whereas another lender may approve the application regardless of the CCJ. 

You may have to shop around a bit harder to find a lender who will accept your application despite the CCJ.

Does the size of a CCJ affect a mortgage application?

If your CCJ was registered over three years ago, the size of it shouldn’t really have an impact on your mortgage application. However, if your CCJ was within the last 12 months, then there may be limits to how much you could borrow.

Again, how the size of your CCJ will affect your mortgage will vary from lender to lender. Some lenders will only lend if the CCJ was below £3,000 and was over a year ago, whereas others would consider a very recent CCJ if the amount was less than £1,000.

Your CCJ value could also affect the deposit you’ll need. If you have a very large CCJ, then you may need a deposit of at least 30%. 

This is where speaking to an experienced mortgage advisor can really help. Our team will take the time to understand your situation and help to find the most suitable lender for your financial state.

Does the date of a CCJ affect a mortgage application?

The more recent your CCJ is, the more likely it is to affect your chances of getting a mortgage. 

For example, if it happened a number of years ago and you haven’t had any financial trouble since, a lender will usually be more forgiving than if you have had a CCJ within the last 12 months. 

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

Satisfying your CCJ can be a bit of a grey area since some lenders will require you to satisfy it before, while others lenders won’t. 

If you have satisfied your CCJ or it was registered over two years ago, you will have more lenders to choose from than if you were still paying it back. 

What is the best way to get a mortgage if you have a CCJ?

There are few ways to increase your chances of securing a mortgage with a CCJ. 

These include:

  • Improving your credit score: In the months building up to applying for a mortgage, it’s a good idea to tidy up your credit file. Try to prove to lenders that you can manage your debts responsibly. If you have any credit cards, ensure you’re paying all of your bills on time. 
  • Save for a bigger deposit: Although this is generally easier said than done, you have greater chances of getting a mortgage if you have a higher deposit amount. The greater deposit you have, the more lenders will be open to consider your application. 
  • Get specialist advice: Getting a mortgage can be difficult, even for those who have a good credit score. Save yourself any stress by getting advice from specialist mortgage brokers, such as the team at Go2Mortgage. Get in touch and we can discuss your specific needs in more detail.

Which lenders will give you a mortgage when you have a CCJ?

Although lenders have their own criteria to satisfy, with some being more lenient than others, it is unlikely you will be able to get a mortgage with high street bank lenders when you have a CCJ. 

Instead, you will have to find lenders which have specialist products made for applicants with CCJs. Again, this will depend on the severity of your CCJ, and other factors such as how many CCJs you have and whether they have all been resolved. 

At Go2Mortgage, we can help to find these lenders and offer you the best chances of securing a mortgage.

How can a mortgage broker help me get a mortgage with a CCJ?

You can increase your chances of securing a mortgage by working with specialist and experienced mortgage brokers. 

At Go2Mortgage, we have years of experience working with individuals in difficult situations that could affect their chances of getting a mortgage, such as CCJs.

We will take the time to understand and review your individual circumstances, finding the best solution possible for you.

FAQs about Mortgages & CCJs

What types of mortgages can I apply for if I have a CCJ?

The type of mortgage you wish to apply for can also be affected by a CCJ. If you already own a property and you’re looking to remortgage or move, then applying for a mortgage with a CCJ could be the easiest of options. 

However, problems could arise when you’re purchasing a new build or you’re a first time buyer, since lenders become less flexible. 

Some lenders will not accept applicants with a CCJ over £1,000, whereas other lenders may require the CCJ to be satisfied 12 months prior to the mortgage application. 

Buy-to-let mortgages are usually the hardest to obtain with a CCJ. Lenders may require you to satisfy your CCJ before applying for this type of mortgage and will generally require a large deposit amount. 

Don’t let this dishearten you on finding the right mortgage. There are plenty of specialist lenders out there who have products available for people in this situation. 

How much can I borrow for a mortgage if I have a CCJ?

If you have a CCJ, the amount you can borrow is largely based on the details of the CCJ, your current income and your deposit amount.

Lenders may restrict the amount you can borrow to four times the amount of your annual income, but if your CCJs are older than two years, then this can be increased to five times of your annual income. 

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

No matter what situation you’re in, a higher deposit is always the more favourable option for lenders since there is less risk involved if you’re putting down a larger than average amount. 

If you have a smaller deposit and a CCJ, lenders are likely to view you as a high risk applicant. 

If you have a 5% deposit, then lenders will likely require your CCJ to be at least three years old. Anything from 25% upwards will give you much more flexibility, and some lenders will accept 25% even if your CCJ was registered in the past year. 

Can I get a CCJ removed from my credit file?

If you don’t owe the debt, you can ask the court to remove your CCJ by reopening the case against you, known as ‘setting aside’. You can only do this if you have a genuine legal reason as to why you don’t owe the money. 

You will be required to fill in form N244, and you will probably have to pay a fee for your case to be looked at again. 

If the court agrees that you don’t owe the money, your CCJ will be removed from the register and your credit file should be corrected. Removing the CCJ could take up to four weeks and you should receive better credit options once it’s removed. 

How many CCJs are too many to get a mortgage?

The number of CCJs you have on your credit file will affect your chances of getting a mortgage. If you have more than two CCJs, then you will likely need a minimum deposit of 25%, and some lenders will require the CCJs to be over a year old. 

Some lenders have a ‘CCJ cap’, meaning they will not lend to you if you go over a certain number of CCJs. The good news is that not all lenders are the same, and some lenders will consider your application no matter how bad you think your situation is.Mortgage, we can help you find a mortgage lender for your specific land mortgage needs – just get in touch.

About the author 

Gary Oxborough

Gary is the Founder and Director of Barlow Irvin Financial Services Ltd. He has been in the Finance industry for over 20 years and has specialised in Mortgages since 2003. As well as running the firm, he is still actively involved in advising clients.

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