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Mortgage With A CCJ

Do you have a CCJ on your credit report and are wondering how it can impact your mortgage approval? We’ve covered everything you must know before applying.
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Mortgage approval can be difficult, especially with a CCJ on your credit report.

A CCJ (County Court Judgement) is a court-mandated repayment order for borrowers who have failed to repay money to their lenders. It’s filed by lenders, who generally use it as a last resort to recover their money.

A CCJ is recorded on your credit history, which can lead to poor credit scores, which can, in turn, affect the chances of your mortgage approval. But what are the implications? Read on to find out how to get mortgage with a CCJ.

What is a Court County Judgement

How Can A CCJ Affect Your Mortgage Application?

A valid CCJ will be recorded on your credit file, which will, of course, be checked every time you apply for a loan or mortgage.

And aside from reducing the mortgage chances, it could even prevent you from getting a credit card or opening a bank account!

Now, a CCJ will generally appear on your credit file and will stay on there for 6 years (starting from the date of the judgement), irrespective of whether or not it has been settled.

But that said, resolving it within a shorter time frame can have a less severe impact on your credit history and your chances of mortgage approval.

For example, if you repay the debt relating to the CCJ or prove in court that it was false within 30 days from the date of the judgement, it may not even be recorded in the first place. 

On the other hand, failure to settle the CCJ within the 30-day deadline can reduce your chances of mortgage approval as well as the number of lenders that may be able to consider your application.

Is It Still Possible To Get A Mortgage With A CCJ?

Securing a mortgage with CCJ is possible. In fact, there are a growing number of lenders who are now dealing with mortgage applications for applicants with CCJ’s registered on their credit file subject to meeting certain ‘qualification’ criteria.

It’s typically easier to secure a mortgage with CCJs older than 3 years or more, especially compared to one in the past few years.

However, some lenders may take into consideration only the date when the CCJ was issued, while others may look into the details of the settlement and the settlement date. And in such cases, proactive settlement can counter some of its negative effects on your credit history

Likewise, some lenders specialising in bad credit mortgages may require you to settle the case in court before applying for the mortgage.

And the time frame for the settlement can vary between 1 year and right before the application is filed, depending on the lender you approach. But others may be willing to consider your application even when the CCJ is still in court.

Criteria for CCJ

Overall, here are some of the basic criteria considered by most lenders:

  • Date of CCJ
  • If the CCJ is resolved or ‘partially satisfied’ (paid)
  • Number of CCJs against your name
  • The amount of the most recent CCJs
  • The type of mortgage you’re aiming for
  • Your credit score and report

How Can The Size Of The CCJ Affect Your Mortgage Application?

The size of the CCJ, in simple terms, is the amount of money due for payment to the lender, and it can have a significant impact on your mortgage application.

But it’s not the only factor to consider and some lenders may be willing to consider your application even with large CCJ’s as long as you meet their criteria.

How To Increase Your Chances Of Getting A Mortgage With A CCJ?

As you may have already figured out by now, quicker CCJ repayments and settlements can be effective ways to successfully secure a mortgage.

However, some people may take longer to resolve the CCJ, resulting in lower credit scores than people who take quick actions.

As such, if you’re waiting for the CCJ to disappear from your credit history before applying for another mortgage, make sure you make consistent repayments. 

Here, we should also mention that ideally, the best time to apply for a mortgage after a CCJ has been resolved is when you have a stable and consistent source of income. This way, your potential lender would have better assurance of mortgage repayment, no matter the type. 

A larger deposit can work in your favour as well as help reduce the interest rate, giving you a better chance at managing your finances for repayment.

In this regard, you will find many lenders have qualification criteria for deposits, too, with some lenders requiring at least 30% deposit for applicants with CCJ’s.

This is not always the case and you should contact a mortgage broker who can find the most sutiable lender for you.  

But perhaps, the most important thing is to be honest with your potential lender and have concrete justification for the reasons that led to the CCJ.

While some reasons may be unforeseen, others may result from your ignorance or mismanagement of finances.

In either case, come clean to your potential lender, as they will find out everything sooner or later. 

How To Find Out If You Have A CCJ Against Your Name?

A lender can register a CCJ  against your name but only after sending a letter of claim and a default notice for non-payment of the commitment.

If you don’t respond to these notifications or can’t resolve the matter, this is when a lender can register a CCJ against your name, and the court will send you a claim pack.

However, if you don’t receive any correspondence but still observe a drop in credit score (especially with no misuse of credit), it’s likely a result of a CCJ issuance. In this case, you can:

  • Search the online database of the Register of Judgements, Orders and Fines for a fee
  • Secure a copy of your credit report for more details

Frequently Asked Questions

1. Can You Get A CCJ Removed from Your Credit History Before The 6-Year Period?

A 6-year-old CCJ will automatically get removed from your credit history, even if it hasn’t been settled. 

If you believe the CCJ has been registered by error and you can prove this, then you may be able to get this removed from your file. 

2. What Will Happen To The CCJ Record If You Pay It Off After The 1-Month Period?

If you pay off the CCJ after the initial 30 days (but before 6 years), you can get its status changed in your credit history through the same process mentioned above.

In this case, the CCJ will still be visible in your credit report for 6 years, but its status will be changed to ‘paid’ or ‘satisfied.’ And both these scenarios can improve your credit score.

3. Can You Pay A CCJ Partially?

Yes, it’s possible to pay your CCJ in instalments or partially, depending on the final judgement passed by the court.

But it’s always advisable to repay the whole amount upfront as soon as possible to improve your credit score.

4. What Happens If The CCJ Claim Is Invalid?

If you can legally prove to the court that you don’t owe any debt to your lender, then you can ask the court to re-open the CCJ against your name for ‘setting it aside.’

This will require submitting a specific form (N244) and paying a fee for the reconsideration, after which the CCJ will be removed from your credit history, typically within 4 weeks.

5. Do Lenders Consider The Number Of CCJs For Approval?

Yes, the number of CCJs against your name can also affect the chances of mortgage approval and the deposit amount.

From what we have seen, many lenders will require a minimum deposit of 25% if you have two or more CCJs in your credit report.

And this is especially true if all or most of the CCJs have been registered in the last 12 months.

Your home may be repossessed if you do not keep up repayments on your mortgage.

All content is written by qualified mortgage advisors to provide current, reliable and accurate mortgage information. The information on this website is not specific for each individual reader and therefore does not constitute financial advice.

Mortgage & Protection Advisor | 03337892035

I am CeMAP (Certificate in Mortgage Advice and Practice) qualified mortgage adviser with a strong background in Finance. I specialise in providing expert advice on a range of mortgage products, including first-time buyers, remortgages, buy-to-let mortgages and bad credit mortgages.

CeMAP & CERER Qualified Mortgage Adviser

I am CeMAP & CERER qualified mortgage adviser and have helped a number of clients realise their dreams when they thought it would not be possible. I’m skilled at getting mortgages sorted for people with a history of missed payments, CCJs, defaults, debt management programmes, IVAs and bankruptcies.

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