Mortgages with a CCJ
Need a mortgage with a CCJ? You’re in the right place. We’re specialist mortgage brokers with a proven track record of making mortgages possible for people who have CCJs, like you.
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CAN I GET A MORTGAGE WITH A CCJ?
Yes, you can get a mortgage with a CCJ. It’ll be more difficult as you’ll have fewer options available to you, but it’s not impossible. It’s a case of finding the right specialist mortgage broker who can help you understand your options, and find you the right specialist lender.
If you’ve got a CCJ (County Court Judgement) on your credit file, applying for a mortgage can be daunting. But some lenders will consider and accept you. Usually, as long as your CCJ is satisfied – meaning that it’s been paid in full – lenders will offer you a mortgage, but there are some lenders who might consider you even if the repayment on a CCJ is partially outstanding.
Getting approved with a CCJ will depend on a few things:
How Recent the CCJ Is
The more recent a CCJ is, the bigger the impact that it will usually have on a mortgage application. For example, if the CCJ was served more than three years ago, the impact on a lender’s decision may be less than if it was served more recently.
The Number of CCJs on Your Credit File
Multiple CCJs will have a bigger impact on your ability to secure a mortgage than a single one, with the majority of lenders not wanting to see more than two in place within the last two years.
The Value of the CCJ
The lower the value of the CCJ, the less of an impact it is likely to have on your application, however, how much this affects the loan-to-value LTV ratio differs between lenders.
The CCJ Being Satisfied
Whether or not a CCJ has been satisfied (repaid in full), as well as when this happened, can impact a lender’s decision, and when this has happened, it typically means that deals will be available from a higher number of lenders.
The Value of Your Deposit
Having a higher deposit is likely to increase your chances of being approved for a mortgage with a CCJ, and open up your options, as you pose less of a risk.
Additional Bad Credit Issues
A CCJ is not the only bad credit issue that you may have, and having multiple marks on your credit file may impact a lender’s decision.
These may simply be late or missed payments or more severe issues such as bankruptcy, a debt management plan, an IVA, or a previous repossession.
Got questions?
What is a CCJ?
A CCJ, also known as a County Court Judgement, is a court order that is served against you when you fail to repay money that you owe, usually after other attempts to recover debts have failed. You’ll be required to pay off your debt either in installments or in a single lump-sum.
After your CCJ has been satisfied (where no money is owed), it will still show on your credit file for six years. Which can make applying for any type of credit, including a mortgage, and other financial products more difficult because you are seen as a higher risk than someone without.
A CCJ is not the same as an IVA (Individual Voluntary Arrangement), however, it is not uncommon for both to show on your credit file, given that CCJ debt is often included in this.
How long does a CCJ last on your credit file?
A CCJ will stay on your credit file for six years from the date that it was served, and will be removed automatically after this period. It’ll be there even if you pay off the CCJ in full within six months, meaning that lenders will see this when running a credit check on your name.
In some rare instances, it may be possible to get a CCJ removed from your credit file if you meet strict criteria.
How does a CCJ impact your mortgage application?
A CCJ makes you look ‘high-risk’ to a lender. That’s because it signals to them that in the past you haven’t been able to keep up with another payment. A CCJ may mean that the rates on offer to you aren’t as competitive, or that you’re not allowed to borrow as much which means you might need to put a bigger deposit on your home.
Our Mortgage Experts can help you understand what options are open to you.
Can I remove a CCJ from my credit history?
In some circumstances, yes. If you think a CCJ has been registered on your account by mistake, or unfairly, contact the three credit reference agencies; Experian, Equifax and TransUnion to remove a CCJ from your credit profile.
You need to be able to prove that:
You paid the full amount within one month of the CCJ being issued
It’s been six years since you received the CCJ
An insurance company was responsible for the debt
You disputed the CCJ and it was cancelled or ‘set aside’ by the court
What deposit do I need if I have a CCJ?
How much deposit you’ll need to put down will depend on your individual situation, and will vary between lenders. Lenders have their own criteria to work out how much of a risk it would be to lend money to you with a CCJ.
Generally, the more money you can put down up front, the less of a risk you pose. This is especially the case if you have a CCJ. The bigger your deposit, the less money you’ll need to borrow (LTV), and the better your interest rate will be. Having a bigger deposit shows the lender that you’ve been savvy with your savings, and have got a good grip on your finances.
However, if you can’t save a lot of money for a deposit, there are schemes available such as Help to Buy and Shared Ownership which only require a smaller amount up front. You can read more in our guide: Help Schemes for First Time Buyers.
Can I remortgage with a CCJ?
Yes, you can remortgage with a CCJ! But you just might need a bit more help getting the right mortgage compared to someone with a better credit score.
Most mortgage lenders and banks will look at your remortgage application in the same way they would if you were applying for the first time. Many high street lenders will look at a CCJ as an indicator that you’re not great with credit and might decide they don’t want to take the risk. But it’s a big misconception that if you try to remortgage with a CCJ then it’s an automatic ‘no’.
There are plenty of specialist lenders who’ll look at your mortgage application in detail, rather than automatically reject you based on your credit score. The specialist mortgage market isn’t well known because often specialist lenders aren’t available directly to borrowers. They don’t advertise because they’re only available through specialist mortgage brokers (like us!) who can help people that have a complex situation.
If you’re looking to remortgage with a CCJ, make an enquiry and we'll find out your options.
Why use Haysto?
We get how it feels when you’re refused a mortgage. We’ve been there. Haysto exists because the mortgage world is broken. If you don’t have a shiny credit rating, you’re self-employed with a complex income, or just don’t fit the mould, the odds are completely stacked against you. We just don’t think that’s fair.
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Unlike others, we only work on bad credit, self-employed and complex mortgages. That’s all we do. And we’re up for a challenge.
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