Having a County Court Judgement (CCJ) can make getting a mortgage much more difficult CCJs show up on your credit report and signal to lenders that you have failed to repay a debt in the past This understandably makes lenders more hesitant to offer you a mortgage.
However, it is still possible to get a mortgage if you have a CCJ. While your options will be more limited, and you may need to meet certain requirements, specialist lenders exist who are willing to work with borrowers who have CCJs.
In this complete guide, we will cover everything you need to know about getting a mortgage with a CCJ, including:
What is a CCJ and How Does it Impact Your Mortgage Chances?
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A CCJ is a court order issued when you fail to repay money you owe. It damages your credit score.
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Most mainstream lenders will reject mortgage applicants with a recent CCJ.
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Specialist lenders are more open to borrowers with CCJs.
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Satisfied CCJs (paid in full) are viewed more favorably than unsatisfied CCJs.
Factors That Help Your Mortgage Chances with a CCJ
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Time The longer ago the CCJ was issued the better. After 6 years it disappears from your credit report.
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Size Smaller CCJs are viewed as less concerning than larger CCJs by lenders
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Number: Having multiple CCJs makes getting a mortgage even harder.
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Resolution: Settling the CCJ by paying it off can help.
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Other factors: Stable income, larger deposit, clean recent credit history all help.
Finding Lenders Willing to Work with CCJs
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Specialist lenders and mortgage brokers are key. Mainstream lenders likely won’t approve you.
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Be prepared to provide evidence you can afford repayments.
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Shop around and compare options as rates may be higher.
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Consider alternative options like a guarantor mortgage or secured loan if you struggle.
Steps to Improve Your Chances
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Pay off any outstanding CCJs if possible.
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Avoid missed payments or new credit applications.
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Check your credit report and fix any errors.
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Build your credit score back up over time.
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Increase your deposit amount if feasible.
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Consider applying with a borrower who has good credit.
FAQs About Getting a Mortgage with a CCJ:
How long after a CCJ can I get a mortgage?
- If the CCJ is satisfied, most lenders require you to wait 12 months. If it’s unsatisfied, you may need to wait up to 3 years.
What mortgage deposit do I need with a CCJ?
- Expect to provide a larger deposit of 20% or more compared to the typical 5-10% required.
Does a satisfied CCJ affect mortgage eligibility?
- A satisfied CCJ affects your chances less than an unsatisfied CCJ, but can still impact eligibility with many lenders.
Are there lenders that will give me a mortgage with multiple CCJs?
- There are specialist lenders that may work with you, but your options will be more limited compared to 1 CCJ.
How much equity do I need to remortgage with a CCJ?
- You may need up to 50% equity in your home to remortgage with a CCJ, compared to 15-20% typically required.
The bottom line is that while having a CCJ does negatively impact your mortgage chances, it should not make you lose hope. As long as you understand the factors lenders look for, take steps to improve your credit, and work with brokers and specialist lenders, you can likely still get a mortgage with a CCJ. It will require some patience and diligence, but homeowners should not assume CCJs make a mortgage impossible.
#2 Getting a mortgage with a CCJ
So, can I get a mortgage with a CCJ? Yes, it is possible to still secure a mortgage, even if you have a CCJ on your credit file. However, it does depend on a number of factors, of course.
- One of the key factors is how recent the CCJ was registred. Usually, the older it is, the more chance you have of success.
- If the CCJ has been marked as ‘satisfied’, you will stand an even better chance. This means that you have settled the outstanding charges and the CCJ has been resolved. Some lenders prefer 12 months to have passed on a settlement, but others may be more lenient.
- The financial amount of the CCJ can be a major factor. If it’s considered to be too high or too much, it can affect the loan-to-value (LTV) ratio, therefore lenders are less likely to take the risk.
- If you have more than one CCJ, this can cause more issues. A history of late or missed payments will limit your mortgage options.
- The size of expected deposit may vary due to the type of CCJ you have or the age of it. Again, the older the CCJ, the more familiar your deposit percentage should be.
#3 How do I know if I have a CCJ?
If you’ve been experiencing credit issues, it might be because you have a CCJ against your name. If you’re unaware of such a case, it may be that you’ve moved address and missed the notice, for example. To be certain, you can check the Register of Judgements, Orders and Fines and perform a CCJ check against your name for £4.