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Getting a mortgage with a CCJ

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By Pete Mugleston  | Mortgage Advisor Pete has been advising on mortgages with CCJ's for over 10 years and is regularly quoted in both trade and national press

Updated: 26th February 2020 *

Finding a mortgage can be tough at the best of times. For anyone with a satisfied County Court Judgement (CCJ) – whether recent or more historic – things can seem impossible. The good news is that you do have options when it comes to getting a mortgage with a CCJ – you just need to know where to go for the right advice.

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Can I get a mortgage with a CCJ?

Yes, it's definitely possible. Mortgage lenders catering for those with satisfied CCJs - i.e. ones that have been paid in full - can vary widely in what they deem acceptable specific to your credit file and several other key factors.

You should also keep in mind that, while some lenders will reject customers due to CCJ issues, others might offer less favourable mortgage rates due to the increased risk involved.

For instance, your CCJ may be settled, but there is other criteria you will need to meet to get approved for a mortgage.

Any other credit issues you have will be taken into consideration, as will the amount of deposit you have, the property type and other variables.

If the CCJs are older than two years you may be able to get a mortgage based on 5x your income, but this is subject to passing with the appropriate credit checks.

Your income is also a factor here – if you are employed you may be restricted if you have not been in your job for 12 months or perhaps on maternity leave; if you are self-employed you may be restricted if you don’t have two years worth of accounts (some CCJ lenders are willing to lend based on 12 months trading history).

What criteria will I need to meet?

You will need to meet the mortgage lender's standard eligibility and affordability criteria to be considered for approval. In addition to this, your CCJ will also need to meet certain conditions as far as some mortgage provider will be concerned.

We have outlined all of the requirements below...

Date of the CCJ

How recently the CCJ was registered is probably the most important factor when it comes to getting a mortgage approved. It’s far simpler to get a mortgage with a CCJ that is over three years old than one which was registered in the last 12 months (although still possible with enough deposit).

The date it has been satisfied is also important, as where some lenders don’t require settlement at all; others require it to have been settled for at least 12 months.

Amount/size of the CCJ

The size of the CCJ is also an important factor as most specialist lenders who are experienced in dealing with bad credit customers limit it to a certain level, if it was registered recently.

If over two-to-three years old then it can be pretty much any value, but within 2 years the CCJ size would be limited to approximately £2,500 if you are borrowing up to 85% loan to value.

If it was within the last 12 months then the maximum size the CCJ can be is just £1,000. There are lenders that consider larger CCJs but they will usually require a minimum deposit of 25-35%.

Deposit

The higher your deposit, the better your chances of getting a mortgage. If you have 5% deposit then your CCJs will need to be at least three years old minimum. If you have 25% deposit or more you may still pass the lender's eligible assessment with judgements registered in the last 12 months.

You can find more information in our guide to bad credit mortgage deposits.

Number of CCJs

If you only have a small deposit (5-10%) to put down, specialist CCJ mortgage lenders will limit the number of issues registered in the last 24 months to two, with fewer or no restrictions if the judgement was registered over two years ago.

If you have 25-35% deposit then lenders can consider a larger number of judgements on your credit file as long as they are over 12 months old, so you will likely stand a better chance of getting a favourable mortgage loan.

Satisfied vs. unsatisfied CCJ

Many borrowers don’t realise you can get a mortgage loan with a satisfied CCJ, let alone an unsatisfied CCJ. Every mortgage lender is different depending on whether you have satisfied it or not, paying it off giving you a wider range of lenders to choose from, but is not always necessary if you don’t want to go to the trouble of repaying it prior to application.

Unsatisfied CCJ

If the judgement was registered over two years ago, most specialist lenders won't insist that the CCJ need to have been repaid before they will consider your application. Mainstream lender, however, might want the CCJ to be settled in full.

Satisfied CCJs

Most lenders that approve mortgages for customers who have a satisfied CCJ on their file will want it to have been paid off at any point before the application. Others will insist that it was satisfied at least 12 months prior.

Mortgage type

The type of mortgage product you are looking for can limit which lenders you’ll be eligible with when it comes to CCJ mortgages. Standard purchases and remortgages tend to offer the most flexible criteria and likelihood for acceptance.

If you are purchasing a new property as a first-time buyer there can be additional restrictions and criteria for you to meet, with some banks and building societies not accepting CCJs over £1,000, and others requesting 6 months of satisfactory rental references.

If you are purchasing a buy to let property then these lenders are much more restrictive when it comes to CCJs and defaults and you may either be required to provide more deposit or wait until they are of a certain age (longer than for residential) before you can apply.

Secured loans for people with CCJs are actually the most flexible and if the borrower has sufficient equity they may be able to obtain further borrowing on their property even if they are declined for a straightforward CCJ remortgage.

Other credit issues

If you have any other credit history issues then these may well impact the likelihood of approval.

Less severe such as late monthly payments or missed payments are generally acceptable within the last 12-24 months up to 85% loan to value, so long as they don’t extend to more than three months late at any one time – if they have, then you’ll likely need more deposit. Other more severe issues such as debt management plansIVAs, repossessions and bankruptcy can cause further issues.

Affordability

These specialist lenders may offer a lesser amount on their affordability models than the high street, and some restrict lending to 4-4.5x income on a mortgage if you have had CCJs.

Eligibility chart

Many of the specialists considering mortgage applications for customers with CCJs are stricter when it comes to CCJs, and many of them (not all) only accept a lesser number and size, also stipulating they are repaid and satisfied prior to application.

As the chart below illustrates, the more deposit mortgage applicants have, the better.

Lender Maximum Loan to value (LTV) Date CCJ was registered Date CCJ was paid off Other adverse credit conditions
A 95% All CCJs registered over 3 years ago are ignored. Declined if registered in the last 3 years. Do not need to be repaid No other adverse credit in the last 3 years – some late payments allowed.
B 85% Allowed 2 inside the last 2 years – must be no more than £1,000 in the last 12 months, £2,500 in months 13-24. Ignored if older than 2 years. Do not need to be repaid Any late payments (max 2 months late each) and 2 defaults allowed in addition to CCJs, no other adverse if in the last 2 years (no bankruptcy etc).
C 80% All CCJs registered over 2 years ago ignored. Do not need to be repaid N/A
D 75% Borrowers who have defaulted in the last 3 months not. Do not need to be repaid Most other adverse considered if over 12 months old.

Speak to an expert

Since lenders who offer mortgages to customers with CCJs can vary dramatically in terms of what they will and won't accept, your best bet is to speak with an expert broker who has access to the entire market before you apply.

Call 0808 189 2301 or make an enquiry and we'll match you with a broker who knows exactly which lenders to approach for CCJ mortgages. We won't charge a fee for introducing you and there's no obligation to act on the advice you receive.

Updated: 26th February 2020
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FCA disclaimer

*Based on our research, the content contained in this article is accurate as of most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The info on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs. Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.