Mortgage With A CCJ

The definitive guide to getting a mortgage with a CCJ.

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Can I get a Mortgage with a CCJ?

Absolutely! Getting a mortgage with a CCJ can be a challenge, but it can be done! Depending on how much your default is, what it was for and when it was you may be able to get a high street mortgage.


There are also lender’s who specialise in bad credit, and are set up in a way to make is easier to get a mortgage with a CCJ.

What is a County Court Judgement?


A County Court Judgement or CCJ is a court order that may be registered against you if you fail to pay on an agreed repayment.


A CCJ is almost the last step really, so if you have got a CCJ usually your creditor will have tried to contact you quite a lot before it gets to this stage. Once you’re creditor takes you to court you would be notified and you can explain your financial circumstances or if you don’t feel you should have been taken to court, you can contest it and put your side of the story across.


If the court decides against you, and says you have to pay the debt your judgement will tell you:

  • How much you owe
  • Who you owe it to
  • Whether you need to pay in full or in installments


The good news at this point is that usually if you pay the debt in full the court will not enter it into the official register so it won’t show on your credit report.

Is the CCJ outstanding or settled?

If your CCJ is outstanding, then it hasn’t been paid yet. Most lenders don’t like outstanding defaults as it shows you got into debt and haven’t repaid it at all. That said some lenders will still consider you.


If your CCJ is settled, then you have paid it back. The date you paid it back will also have an impact on whether or not lenders will lend to you. The longer ago it was repaid, the better your chances.

When was the CCJ issued?

This is probably the main thing to consider. The longer ago your CCJ was issued the better when trying to get a mortgage with a CCJ.

If your CCJ was issued more than 6 years ago it is unlikely to appear on your credit report. Depending on what it was for, and the size you may be able to get a mortgage even with a CCJ relatively recently.

The importance of a deposit for a mortgage with a CCJ

Having a bigger deposit may sound obvious but it has a huge impact on whether people will lend to you. The bigger the better! If you have 15% or more you are much more likely to get a mortgage with a CCJ at the moment.

How many CCJs can I have to get a mortgage with a ccj?

This varies from lender to lender. It also depends on how big your CCJ’s are, how long ago they were, and how much deposit you have. The more deposit you have, the more CCJ’s they’ll consider.

What can I do to increase my chances of getting a mortgage with a ccj?

  • Get on the electoral roll if you aren’t already.
  • This shows lenders that you have a fixed address.
  • Make your payments on time
  • If you have existing credit agreements make sure the payments are made on time, every time. Lender’s don’t like late or missed payments.
  • Take out a credit builder credit card
  • This may have a negative impact to start with, but over time should improve your credit score. Make small purchases and either clear the balance or make the minimum payments each month. Remember though, applying for this will leave a hard search on your credit report, so lenders will see it, and it may lower your rating initially.
  • Stop applying for credit, whether that’s loans, mortgages or credit cards
  • Counter to the point above, each time you take out one of these types of credit it will perform a hard search on your credit file and this lowers your rating, so if you do apply for a credit builder card, make sure you don’t plan on applying for a mortgage in the near future.

When do CCJs expire?

A CCJ will stay on your credit report for six years, even if you have paid it off. You can still apply for a mortgage in this time though, you just need to go with the right lender usually.

How bad are ccjs for my credit file?

Having a CCJ may take a few hundred points off your credit report, but how bad are they?


A lot of high street lenders may not be keen on a CCJ, but that said depending on its size, and how long ago it was you may be able to get a high street rate. This is similar to a default, you can find more info on that here.

How do I know if I have got a CCJ?

You should know if you have a CCJ, as you would have got letters from the creditor and the court. Should you think you might have one, but you’re not sure then you can check your credit file on a website like Checkmyfile.


Can I get a mortgage with a CCJ?

Yes! There are specialist lenders who will consider you with CCJ’s, even if it’s more than one! They may not be on the high street though, so worth speaking to a broker.


Can you have a good credit score with a CCJ?

Yes, you can. It will have an impact for the six years it remains on your credit file, but if you keep other aspects of your credit file in good standing you may be able to get a good credit score.

We’ve tried to cover everything that our clients tend to ask us here, but if your question hasn’t been answered, get in touch! We’d love to add your question to this list.

 

You can find more information on Bad credit mortgages here.

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