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How much deposit do I need to save to get a mortgage with a CCJ?

Updated: February 23, 2021

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Pete Mugleston
Author: Pete Mugleston Mortgage Advisor, MD
How much deposit do I need to save to get a mortgage with a CCJ?

I wanted to share a question we received from Imran about the deposit size needed if you have a county court judgement (CCJ). It’s a great question and something people often discuss. You can read my detailed response to Imran below

Hi Pete,

I’m looking to get a mortgage but have a county court judgement (CCJ) against my name that was registered in the last 12 months.

I’ve been told that there are lenders who consider customers with CCJs, even relatively recent ones like mine, but I understand that I might be expected to put down a higher deposit to qualify for a mortgage.

The property I’ve got my eye on is going for £120,000. How much deposit will I likely need to save up if I’m applying with a CCJ on my file?

Thanks, 

Imran, Newcastle

Hi Imran,

Thanks for reaching out. I’d be delighted to offer you some guidance about this.

You’re absolutely right about deposit requirements typically being higher for customers with unsatisfied CCJs. This is because borrowers with credit issues are generally higher risk than those without, and putting down extra deposit offsets some of that risk.

If you only have the minimum deposit amount (usually 5-10%) to put down, most mortgage lenders will insist that you wait until your CCJ is at least three years old. Since your credit issue isn’t that old, it’s recommended that you save up at least 25% of the property’s value to give yourself the best chance of mortgage approval and favourable rates.

Let’s say you’re able to save up £30,000, your next port of call should be to speak with a whole-of-market broker. While a higher deposit amount will lower the overall risk, you’re still likely to need a specialist lender to offer you a mortgage with an unsettled CCJ, and through a mortgage broker is the easiest way to find one.

Thanks,

Pete

Make an enquiry for a free, no-obligation chat and we’ll match you with a broker experienced in helping other customers in similar circumstances.

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FCA disclaimer

*Based on our research, the content contained in this article is accurate as of the 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.

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