/ Mortgages

Can you get a mortgage with a CCJ? (Guide)

Yes, it is possible to get a mortgage with a CCJ but this will depend on how old the CCJ is, what your credit score is and your recent credit behaviour. E.g have you had a default within the last 12 months? Did you settle the CCJ? You can certainly get a mortgage with a CCJ.

What is a country court judgement (CCJ)?

A county court judgement (CCJ) is a record out on your credit file registered the courts when requested by a creditor. The record will be put on after every reasonable effort has been made to get the debt paid back but to no avail.

When you get a CCJ your chances of getting a mortgage greatly diminish as most mortgage lenders see this as being extremely bad credit behaviour.

The CCJ will usually be removed from your credit file after 6 years and at this point, your credit file will not contain evidence of the CCJ and your mortgage affordability should be much higher.

You can also satisfy the CCJ by paying it off and settling the debt. You can notify the court that you have done this or your creditor may be able to notify the court that the CCJ has now been satisfied. It will then be marked as satisfied on your credit record and this gives it a better look to mortgage lenders than an unsatisfied CCJ.

You can satisfy the CCJ within 30 days and it will be removed from your credit file or if you are able to successfully dispute it even after 30 days then it may still be removed from your credit file.

Mortgage lenders will also typically not consider mortgage applicants with CCJs within three years regardless of it has been satisfied or not.

There are a handful of mortgage lenders who will look at mortgage applicants with satisfied CCJs which have been on their credit files for more than 3 years but you may need to seek the services of a bad credit mortgage broker to advise you on this specialist mortgage lenders.

Some mortgage lenders will look more at the size of the CCJ and make their judgement based on this.

Some mortgage lenders will require the county court judgement (CCJ) to be satisfied and others won't. This area of the mortgage market is very specialist and hence requires specialist mortgage knowledge.

What are the chances of getting a mortgage with a CCJ?

A Bad credit mortgage broker will be able to help you get a mortgage with a county court judgement (CCJ) by preparing your mortgage application and proposing it to mortgage lenders who may accept applicants with a CCJ.

Your chances will be incredibly higher if you satisfied the CCJ or you are in the process of satisfying the CCJ.

The length of time in which the CCJ has been on your credit file will also affect your chances of getting a mortgage with a CCJ.

The longer the CCJ has been on your credit file the better your chances of getting a mortgage are.

If the CCJ is recent then you may find that it is much harder to get a mortgage as your recent behaviour might indicate you aren't creditworthy.

It may still be possible to get a mortgage even through the CCJ is recent if you can provide further evidence to your bad credit mortgage broker to explain that the debt was incurred far before the CCJ was recorded on your credit file.

Does a CCJ affect mortgage?

If you already have a mortgage then your CCJ will not affect your current mortgage but if you want to apply for a mortgage then a CCJ will likely affect your mortgage affordability and you will likely need a specialist mortgage broker to help you secure a mortgage.

The amount of the CCJ will also affect if you can get a mortgage and how much you may need to put down for a mortgage deposit.

Most specialist mortgage lenders will look to accept any size of CCJ as long as it is been registered for over 3 years, some will still require that it has been satisfied while others won't.

If the CCJ is within 2 years then the specialist mortgage lenders who may accept this and offer you a mortgage will expect the size of the CCJ to be around £2500 or less and the Loan to value they will likely offer will be 85% or less. borrowing up to 85% Loan to value. If the CCJ is within the last 12 months then the specialist mortgage lenders who may accept this will expect the CCJ to be mo more than £1,000.

Different mortgage lenders able to restrict their lending criteria but this will largely depend on how much you put down as a mortgage deposit. 25% and up may be an ideal target based on the advice of your bad credit mortgage broker.

Can you get a mortgage with a CCJ and defaults?

Getting a mortgage with a CCJ will be hard enough but to get a mortgage with a CCJ and defaults on your credit file you may find it much harder to find a mortgage lender who is willing to lend to you. You should instead look to build credit and increase your mortgage affordability before applying for a mortgage.

Can you get a mortgage if you have a Judgement?

You may be able to get a mortgage if you have a judgement but this will require specialist mortgage advice from a bad credit mortgage broker who has experience in dealing with bad credit mortgages as this is.

If you do get a mortgage with a judgement you can expect to be paying a much higher APR than the typical person.

A judgement will refer to when you have been sent a warning letter in relation to a CCJ claim but didn't respond an now the judgement has been passed in default and you now have to abide by it or risk a possession order or an attachment of earnings order or any other order deemed necessary by the courts to recover the debt.

How many points is a CCJ on credit score?

A CCJ on your credit file may cost you up to 250 points on your credit score depending on the credit bureau.

In the UK we have TransUnion, Equifax and Experian as the credit bureaus. You should check with each to see how many points you have lost due to a CCJ.

Will paying off a CCJ improve my credit score?

Yes, paying off your will definitely see your credit score increase but this depends on when you pay it. If you pay your CCJ within 30 days of when the CCJ claim comes in it is very likely it will not even make its way to your credit file and if it does you can ask for it to be removed.

If you pay for the CCJ after 30 days from receiving the claim letter then whilst your score might improve the CCJ will still be on your credit score and it will likely pull it down for the next few years,

Can I get a CCJ removed from my credit file?

Yes, you get a CCJ removed from your credit file but you will need to do this within 30 days to guarantee it.

You can do this by successfully disputing the CCJ or paying the debt within 30 days from when you get the CCJ claim letter.

If you never received the CCJ claim letter (maybe because it was delivered to an old address or never delivered and you can prove this) and you find the CCJ on your credit score you may also be able to get it removed.

You may also be able to get a CCJ removed from your credit score if you are able to dispute its validity after the 30 days have passed.

Other things to consider when getting a mortgage with a CCJ

Remortgaging with a CCJ:

Remortgaging to a better mortgage lender may be much more difficult in the future and you may be stuck with your current mortgage lender and end up as a mortgage prisoner. This means after your fixed rate mortgage is up (if you are even offered one initially) you may be forced to pay the mortgage lenders variable rate which will likely be more expensive.

Types of mortgages with CCJs:

Depending on the type of mortgage you are trying to get, getting a mortgage with a CCJ may be possible or not. If you are trying to get an interest-only mortgage for example then a mortgage with a CCJ will be almost impossible, the same goes for buy to let mortgages. In truth, you are pretty much restricted to a standard repayment mortgage if you have a CCJ

Government schemes with CCJs:

A CCJ may make you ineligible for most of the first-time buyer and home move mortgage schemes such as the help to buy equity loan, the shared ownership scheme etc.

Maximum LTVs:

Most specialist mortgage lenders will have a maximum loan to value (LTV) they will lend to people with CCJs. This means you may need to put down a bigger mortgage deposit.

Other credit issues:

A CCJ may not be the only thing disqualifying you from a mortgage or reducing your mortgage affordability.

If you have been made bankrupt, had a recent credit default, had a debt management plan had an Individual voluntary agreement or you have too many registered addresses on your credit file then this may well make you ineligible for a mortgage as you fail the mortgage lenders affordability assessment. Your bad credit mortgage broker will assess these things prior to trying to get you a mortgage in principle.

The number of CCJs:

As you can imagine, someone with one CCJ versus someone with 3 CCJs. It is most likely that the person with one CCJ will look better to bad credit mortgage lenders but this may not always be the case and mortgage lenders will assess each case on its merits.

They will look at the total value of the CCJs, were they all accrued in the same time frame?

This could indicate that the person was suffering some financial hardship. Have the CCJs been satisfied? Most mortgage lenders will simply not lend to people with more than one CCJ as they may impose a maximum amount of CCjs a mortgage applicant could have. Mortgage lenders who lend to people with more than one CCJ will likely have a small loan to value such as 75%.

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Can you get a mortgage with a CCJ? (Guide)
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