CCJ mortgages: Can you get a mortgage with a CCJ?

If you’ve struggled with debt in the past but are now hoping to buy a new property, you might be wondering “can I get a mortgage with a CCJ?”.

You may have received a CCJ, or county court judgment, if someone has taken court action against you as they believe you owe them money. Receiving the judgment means that the court has decided that you do indeed owe the money requested. If you then don’t pay the full amount owed within a month, records of the judgment will be kept for six years, which can then make it harder to get credit. This is why a CCJ can be a big concern when you’re planning to apply for a mortgage.

At The Mortgage Genie, we can help you to secure a mortgage even if you have a CCJ. This is because we have access to more than 90 lenders, many of which specialise in handling cases just like yours. We’re also experts in considering all of the relevant factors so we can help you find a bad credit mortgage that suits your needs and budget. So, get in touch with our team to discuss your situation and requirements today.

We know you’ll still have some questions about CCJ mortgages and how your history can have an impact on your application, though, so we’ve also put this guide together to address them. Here, we’ll cover:

Read on to learn everything you’ll need to know ahead of applying for a mortgage with a CCJ.

Can you get a mortgage with a CCJ?

Yes, it is possible to get a mortgage with a CCJ, but it can be more difficult than with a pristine credit report. A specialist mortgage broker like those we have at The Mortgage Genie will be able to help you understand your options and find the lender that’s going to provide you with the best deal.

There are also a number of factors that can affect whether a lender will be willing to accept your application, or which mortgage products will be available to you. Let’s take a look at some of the main details a lender will consider when you apply for a mortgage with a CCJ so you’re prepared.

How recent is your CCJ?

As you might expect, the more recent your CCJ is, the more it will affect your chances of getting a mortgage. For instance, if it happened a number of years ago and you haven’t had any financial trouble since, a lender will typically be more forgiving than if you’ve had a CCJ in the last 12 months.

Are there multiple CCJs on your credit file?

If you only have one CCJ on your credit report, lenders may be more inclined to see it as a blip on your otherwise acceptable credit history. However, having multiple CCJs will indicate a pattern of financial mismanagement. Most lenders won’t allow you to take out a loan if you’ve faced more than two CCJs in the last couple of years.

Has your CCJ been satisfied?

Whether or not you’ve repaid your CCJ in full, and when this happened, can also have an impact on whether a mortgage provider will lend to you.

If you paid the debt relating to your CCJ within 30 days, it might not appear on your credit history at all. Although, the relevant defaults or actions that led to the CCJ might unless the claim was successfully disputed. If you didn’t pay back your debt within 30 days, it’s still possible to get a mortgage, but there will usually be a smaller pool of lenders willing to accept your application.

It’s also worth noting that CCJs don’t usually occur in isolation, so you need to consider whether you have any other credit problems that could affect your ability to get a mortgage. A lender may be happy to overlook a satisfied CCJ, but they could still be deterred from doing business with you if you’ve struggled to make repayments on other forms of credit.

Essentially, if your CCJ has been satisfied, you have a regular income that means you can afford your mortgage repayments, and there are no other serious issues with your credit history, you should be able to get a mortgage.

How much have you saved for your deposit?

The main reason mortgage lenders may be hesitant to accept your application if you have a CCJ is that they see it as a risk. This is because you’ll typically be asking them to lend you a large amount of money, and they may be concerned about your ability to pay it back. This means, if you’re able to lower the amount you need to borrow by saving a larger house deposit, you can increase the chances of securing the loan you need.

Have you had other credit issues?

As we’ve previously mentioned, while a lender may be willing to overlook a CCJ — especially if it has been satisfied — they might still be put off by other credit issues on your file. These could include late or missed payments, as well as more serious problems such as bankruptcy. If you’ve had some additional financial struggles that have had an impact on your credit rating, it’s worth speaking to a CCJ mortgage broker about how you can get an adverse credit mortgage to suit your circumstances.

In the lead-up to applying for a mortgage, it’s a good idea to keep an eye on your credit rating so you can spot any potential issues and take steps to improve your score if necessary. A free credit check will help you understand your position so you can determine whether there’s any work you need to do in this area.

Depending on factors such as how long it’s been since you received your CCJ, how many you’ve had, and whether you have any other credit problems, you may be in a better position than you previously thought. It’s certainly not impossible to get a mortgage with a CCJ — as long as you’ve kept your record clean since then and you consult a broker who specialises in cases like yours, you should be able to find a loan that fits your requirements.

Will a CCJ affect my mortgage application?

As with most adverse credit mortgages, having a CCJ may affect your application in the sense that your chosen lender is likely to be more thorough when assessing whether they think you can afford the repayments. For instance, they may ask for more bank statements than usual to get an idea of your income, or they may even require you to put down a larger deposit to lower the risk of lending to you.

Applying for a mortgage with a CCJ tends to be slightly more complicated, but it’s definitely doable, and your mortgage broker will hold your hand through the entire process to give you the best chance of being accepted.

How to get a mortgage with a CCJ

If you know you have a CCJ on your credit file but are otherwise in a position to buy a property, you can still achieve your goal with some forward planning and expert help.

Firstly, it’s important that you do everything you can to keep your credit report clean following your CCJ. Make sure all of your payments are being made on time, and avoid applying for other forms of credit ahead of your mortgage application if possible. Lenders will see if other credit providers have checked your credit report recently, which may indicate that you’re planning to take out more loans or credit cards. This can then set alarm bells ringing and might cause them to turn you down.

It’s also vital that you speak to an expert mortgage broker, and preferably one that understands the adverse credit mortgage market. They will help you to assess your situation, identify the products that are going to work for you, and help you with the whole application process. As a result, you’ll have the best chance of finding an affordable deal and having your application accepted.

How long does a CCJ stay on your credit file?

Like most credit problems, a CCJ will stay on your credit file for six years from the date it was served. It will then be removed automatically.

It’s important to note that, even if you pay off your CCJ in full within six months, it will remain on your credit report, and mortgage lenders will see it.

Can you remove a CCJ from your credit file?

Under very specific circumstances, you may be able to remove a CCJ from your credit file. This will then prevent it from being a problem when you apply for a mortgage.

For instance, if you pay your CCJ in full within 30 days of it being served, you can apply for it to be removed from the public register and your credit file. This will involve applying for a certificate of cancellation from the county court hearing centre that issued the original judgment. You’ll need to fill out a court form N443 application [PDF] and provide proof of your payments.

If you pay off your CCJ more than 30 days after the judgment, it can’t be removed from your record and it will stay on there for six years. However, if you do pay it off, you can apply for a certificate of satisfaction using the same process as we’ve outlined above. This will mean that, when mortgage lenders check your credit background, they will see that, although you were previously served with a CCJ, it has been satisfied. As long as the rest of your credit report looks good, this can make it easier for you to get a mortgage.

How long after a CCJ can I get a mortgage?

How long you’ll have to wait to get a mortgage after a CCJ will depend on a number of factors, including how the rest of your credit file looks and how much you’ve saved for your deposit. This means there’s no one-size-fits-all answer, and it’s important you speak to a mortgage broker about your individual situation and what the best approach is going to be.

Broadly speaking, if your credit report is otherwise pristine and you have saved a deposit of 5%, it’s likely your CCJ will need to be at least three years old for your mortgage application to be accepted. On the other hand, if you’ve saved a 25% deposit, most lenders will be more forgiving and you may even be accepted for a mortgage if you’ve been served with a CCJ in the last 12 months. And, of course, saving more than this will provide you with even more flexibility.

Different lenders will have different policies and approaches to risk, though, so it’s vital that you speak to an expert mortgage advisor to get a better idea of the position you’re in.

Can you remortgage with a CCJ?

If you already have a mortgage and have come to the end of your initial deal, or you’re looking to take some equity out of your property, you may be looking to remortgage. But, if you’ve had a CCJ since first taking out your home loan, you might be wondering whether doing so will cause more harm than it’s worth.

It is possible to remortgage your home following a CCJ. However, it may not always be the best option. When you apply for your new mortgage, you will be judged based on your current credit report and, if your rating has dropped since you were first approved, this could mean that you’ll only have access to deals that are actually less affordable than the one you have now.

If you’re thinking about remortgaging after being served a CCJ, it’s wise to speak to a mortgage advisor who can help you weigh up your options and choose the route that’s going to provide you with the best outcome. Depending on what kinds of products are available to you, it may be worth waiting a couple of years until your CCJ is further behind you, or possibly even the whole six years until it’s wiped from your record.

Can you get a buy-to-let mortgage with a CCJ?

If you’re hoping to purchase a property to rent out, you’ll need a buy-to-let mortgage. And, having a CCJ can affect your application in much the same way as if you were looking to buy a home for yourself.

Whether your application is going to be accepted will depend on a wide range of factors, including how recent your CCJ was, the value of it, and what your credit file has looked like since. Plus, you’ll need to provide plenty of evidence that shows you earn enough to cover all of your current outgoings, as well as the repayments for the new buy-to-let mortgage you’re hoping to take out.

But, the short answer is yes — you can get a buy-to-let mortgage, even if you have a CCJ. It can take more work, but having an expert mortgage broker to help you find the best product for your situation will ensure you cover all your bases and the application process goes as smoothly as possible

Being served with a CCJ can be particularly stressful if you have plans to buy a property, but you can still achieve your goal. Here at The Mortgage Genie, we have a team of expert brokers who have a lot of experience with helping both first-time buyers and seasoned house owners buy properties when their credit ratings aren’t the best.

So, if you would like our help with finding the best mortgage deals to suit your situation and budget, get in touch with us today. We would love to help you on your journey towards purchasing the property of your dreams.