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By Pete Mugleston | Mortgage Advisor

Pete has been a mortgage advisor for over 10 years, and is regularly cited in both trade and national press.

Updated: 11th January 2021*

Sometimes people receive more than one County Court Judgement (CCJ) and this is what the question Joan is asking about below. It’s fairly common and as you can see from my response, this isn’t necessarily a problem.


Question

Hi Pete,

I’m worried that I will be declined for a mortgage because I have two county court judgements (CCJs) against my name. The first one will be settled in just under a year and the other has six months left to run. 

I know there are specialist lenders who consider applicants with unsettled CCJs, but what are my chances of getting a mortgage with two judgements on my file? 

Should I postpone my application until both CCJs have been paid off, or is there a chance I could get a mortgage in my current circumstances?

Advice appreciated, 

Joan, Nottingham 

Answer

Hi Joan,

Thanks for your enquiry. There could well be options available to you and I’d be happy to run through some of them with you.

The good news is that there’s no need to delay your application. The specialist lenders who consider customers with CCJs against their name usually limit the number of issues to two, as long as they were registered in the last 24 months.

With two CCJs on your file that were registered within the last two years, it’s possible to get a mortgage with just 5-10% deposit. That said, if you’re able to put down more than the bare minimum, I would recommend doing so. Having a higher deposit amount will reduce the overall risk involved in the deal, and this could mean you end up with a superior interest rate.

Although delaying your application isn’t absolutely necessary, it’s worth keeping in mind that waiting until both of your CCJs have been settled will mean that you’ll have a wider choice of approachable lenders, and therefore access to a broader range of deals, and potentially more favourable interest rates.

That isn’t to say landing a good deal with two unsettled CCJs is impossible. With the help of a whole-of-market broker, you can significantly increase your chances of finding a lender who’s willing to offer decent rates under these circumstances, subject to other criteria.

Hope this helps,

Pete


I answer more questions about CCJ’s and mortgages here:

Updated: 11th January 2021
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*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 information 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.