Can you get a mortgage with a CCJ?

24 January 2023

Can you get a mortgage with a CCJ?
A question we receive regularly relates to the topic of applying for a mortgage with bad credit, can you apply for a mortgage with a CCJ? This guide will talk you through the process, helping you to understand what to expect when starting your mortgage journey if you have a CCJ on file.

What is a CCJ?

In this context, a CCJ refers to a County Court Judgement, which is issued by a court in England, Scotland, Wales or Northern Ireland if you fail to pay money that you owe. A CCJ is usually close to a last resort, and is normally only issued after attempts to collect the money via a formal letter, defaults or late payment notices have been unsuccessful. 
An open CCJ will affect your ability to apply for a mortgage, as many mainstream lenders will not consider any applicant with either an open or a recent CCJ. However, if you have successfully either paid off the CCJ or reached an alternative settlement, you will find more options available to you.

Does a CCJ stop you from getting a mortgage?

Not necessarily, however there are important stipulations. A CCJ is rarely issued in isolation. Other connected credit issues may stand in your way when applying for a mortgage. Additionally, not all CCJ’s are the same, and the effect that they will have on your application will differ from person to person.
If you successfully cleared your CCJ within 30 days, it might not even appear on your credit file at all. However, it is important to note that just because you pay your CCJ within 30 days, there might still be records of some of the previous actions taken before a CCJ was issued that might be visible on your credit report.
If you have experienced a CCJ, all is not lost with regard to a mortgage application. However, the more expensive and recent the CCJ, the fewer options you will have available to you. The older the CCJ, the better you will fare with regard to your mortgage application. There are specialist lenders who cater specifically for applicants with a CCJ, however you should anticipate higher costs such as a higher interest rate due to the increased risk to the lender. Similarly, a CCJ on your file could exclude you from certain high LTV mortgages, but with a large enough deposit this might satisfy certain lenders. Each lender will have their own LTV ratios that they are willing to offer applicants with a CCJ, so a broker can help you to explore the different options available to you. 

FAQs about CCJ Mortgages

Q: How long does a paid off CCJ last on a credit file?

A: Once settled, the CCJ will stay on your credit record for six years before disappearing. This is because a CCJ remains on the Register of Judgements, Orders and Fines for six years. If you pay your CCJ more than a month after it was issued, the CCJ will be marked as ‘satisfied’, so that lenders know that you have paid your dues.

Q: Does it make a difference when the CCJ occurred?

A: Yes, the more recent the CCJ, the fewer options you will have. If your CCJ was over six years ago, it will not appear on your credit report. 

Q: Does the six years start from when the CCJ was issued, or when it was settled?

A: Every lender is different, so your broker will help you to understand the different options available to you relevant to your specific situation.

Q: Does the size of the CCJ matter?

A: Every lender has their own criteria. On the whole, the time since the CCJ is more important, but the value of the judgement is still often important. 

Q: How soon after paying off a CCJ does it appear as satisfied?

A: Once you have repaid the debt, you should receive a formal notification that the debt has been cleared. The creditor will notify the court, who will update the public record accordingly. This process can take multiple weeks.

5 Tips to Improve your Credit Score after a CCJ:

  1. Ensure all payments are made on time for your CCJ and any other credit agreements such as your credit card
  2. If you are going to miss a payment, contact the lender as soon as possible to discuss all available options
  3. Do not make too many new credit applications in a short period of time, ideally no more than once every four months
  4. Ensure all of the details on your credit record are up to date
  5. Make sure you are registered to vote at your current address

How to apply for a mortgage with a CCJ

As not every lender will offer a mortgage to applicants with a CCJ, you may benefit from
using a broker who can access all of the available options on the market for you. We are not
tied to any specific lender, so can help you to receive a comprehensive selection of relevant
offers. To start your mortgage application with About Mortgages, book an appointment with
our friendly team with the link below.

Book an Appointment

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