Mortgage With a CCJ

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Author: Elliott Culley - Director & Mortgage Adviser of Switch Mortgage Finance

Can you get a mortgage with a CCJ?

Yes it is possible to obtain a mortgage with a CCJ. There are many mortgage lenders that will consider you even if you do have a CCJ. You are unlikely to be able to get a mortgage from a high street bank, but there are specialist mortgage lenders available to you, that specialise in adverse credit, offering good rates albeit higher than the best on the market. Getting a mortgage with a default will depend on:
  • the size of the default
  • If it is satisfied or unsatisfied
  • When it occurred and;
  • How many you have
Securing a mortgage may seem quite daunting, but there are lenders that are looking to support you. Just because you have had a CCJ does not mean you cannot get a mortgage. It can be more tricky and being prepared is the best piece of of advice I can give you.

How long does a CCJ last?

Normally a CCJ will remain on your credit profile for 6 years. Even if you have satisfied it. Some mortgage lenders will take it into effect until it drops off your credit profile, whilst other lenders disregard it once 3 years has passed.

Does 1 CCJ affect my credit score?

Yes, having a CCJ on your credit profile will affect your credit score. Not all mortgage lenders will look at your credit score when applying for a mortgage, so if your credit score is low as a result of a CCJ, there are many lenders that will still look at this. Do not think just because my credit score is low I can’t get a mortgage, nothing can be further from the truth.

Will my credit score go up if I pay off a CCJ?

Yes, it is likely your credit score will start to improve if you pay off your CCJ. It will not be instant, and time will play a factor, as well continuing to show good signs of debt management, such as paying any other debts back on time and reducing your overall level of debt if this is applicable to you.

How to increase chances of getting a mortgage with a CCJ?

There are a few actions you can take to increase your chance of obtaining a mortgage with a CCJ, which include:

  • Satisfy the CCJ – This will give you access to more mortgage lenders.
  • Ensure you keep up with other repayments – This will show mortgage lenders the CCJ was a blip.
  • Reduce the level of debt you have if this is applicable – This shows a mortgage lender you are not over indebted and improves your credit profile.
  • Avoid multiple mortgage credit applications – You don’t want more than one application as multiple can damage your credit score.
  • Save a larger deposit – This can give you access to more mortgage lenders and a lower credit score is sometimes needed to pass with a higher deposit. 

Speak to an Expert!

elliott-culley-mortgage-adviser- director-of-switch-mortgage

Contact us today for expert advice and guidance on your unique mortgage and property needs. We will work with you on a one-on-one to basis to help you find the right solution for your needs.  

With our experience you can rest assured that you are in good hands when it comes to securing the financing you need for your property.

How much deposit do I need for a mortgage with a CCJ?

Depending on the severity of your CCJ some lenders may restrict you to needing at least 15% deposit if not more. However there are lenders that can consider from as little as 5% deposit if you fit the correct criteria. It will depend on your circumstances and speaking with a mortgage broker is advised to make sure you are fully aware of your options.

Will a CCJ stop me getting a mortgage?

No a CCJ won’t stop you from getting a mortgage, although it can restrict which mortgage lenders you can approach. The reason for the CCJ and the monetary value will determine which mortgage lenders will be available. The lender could ask you to put down more deposit as a result.

Should I wait until the CCJ has dropped of my credit profile before applying for a mortgage?

You do not need to wait for a CCJ to drop off your credit profile before applying for a mortgage. It takes six years for a County Court Judgement to disappear from your credit report, but there are mortgage lenders that can consider you now. You will have more options if your CCJ was longer than 3 years ago, however there are still options available to you if it was more recent.

Will a CCJ stop me remortgaging?

No, a CCJ will not stop you from remortgaging. Depending on your current situation it may be best to remortgage with your existing lender that in most cases won’t perform a credit search. However in some scenarios, you may need to remortgage to another lender and it is very likely this will be possible for you. For example you might want to raise more funds, or lengthen to term of your mortgage. You wouldn’t be able to do this without a credit search, so remortgaging in this scenario can be more difficult. However there are many lenders that can consider you depending on the circumstances of the CCJ.
mortgage with a ccj. Switch mortgage finance. Specialist mortgage broker.

To keep on top of your credit report we would suggest using Check My File, as it covers the three main credit providers, mortgage lenders will use.

It is free for the first month before a monthly subscription of £14.99 is taken, however you can cancel at any time.

Once received, ensure your credit report is accurate and investigate anything you think is not correct.

Budget and stay on top of current debt and don’t obtain new debt, before or during a mortgage application

First time buyer CCJ mortgage

If you are a first time buyer with a CCJ it is possible to obtain a mortgage for your first home. There are many mortgage lenders that will consider you even if you do have a CCJ. To increases your chances you need to make sure you get your credit report and approach the right mortgage lender that will suit your circumstances. You are unlikely to be able to get a mortgage from a high street bank, but there are mortgage lenders available to you with good rates albeit higher than the best on the market.

Does the size of the CCJ affect my mortgage application?

The size of your CCJ can affect your mortgage application. If your CCJ is over £500 or you have more than 1 that accumulate over £500, then some mortgage lenders will not offer you a mortgage. If your CCJ is over £1,500 you may find it harder to obtain a mortgage.

However some mortgage lenders do not set a limit on the size of the CCJ, provided there is no more than 3 in total. All mortgage lenders are different and some set higher limits and some set lower limits. Just because a lender has a higher limit doesn’t mean the rate will be higher than a lender with a lower limit. So, it really pays to do your research to find the right lender for your circumstances.

Do I need to clear a CCJ before applying for a mortgage?

No, you don’t need to clear a CCJ before applying for a mortgage, however it will give you more options and can potentially secure you a better mortgage rate. However there are plenty of lenders that can consider you even if the CCJ remains unsatisfied.

Getting a mortgage with a satisfied CCJ

If you have satisfied your CCJ you will find obtaining a mortgage easier. You credit score will naturally start to increase as well.

We always recommend satisfying a CCJ if you have the funds to do so, because it will improve your credit score and you will have access to more mortgage lenders as a result. You could also get access to products with higher LTV’s and cheaper rates. Some mortgage lenders require a CCJ to be satisified for at least 12 months, but others are more lenient and have less restrictions.

You can still obtain a mortgage with an unsatisfied CCJ, so if you do not have the funds to clear it, its still worth enquiring to see what your options are.

What mortgage deposit do I need with satisfied CCJ?

Most mortgage lenders will need a 15% deposit, however some lenders will only require a 10% or even 5% deposit provided you match their criteria.

To qualify for a lower deposit you will need to have satisfied the CCJ for at least a year or the value of the CCJ needs to be lower than £500. There are some lenders that may fall slightly outside of these rules so it is always worth enquiring.

Can I get a mortgage with 2 CCJs?

Yes you can get a mortgage with 2 CCJs. A significant amount of lenders will accept up to 3 CCJ’s in the last 3 years. You do need to consider the size of the CCJ’s as well as how recent they were.

Having 2 CCJs can seem to complicate your mortgage application but using an expert in this scenario can make the process more smooth. There are lenders that can consider 2 CCJs showing on file.

Can I get a mortgage with a 4 year old CCJ?

Yes you can get a mortgage with a CCJ that is 4 or more years old. You would have access to a quite a few mortgage lenders provided this is the only blip on your credit profile.

What mortgage lenders accept CCJ’s?

There are many lenders that accept CCJ’s, but the criteria and rates are different for all of the lenders. Just because you have a CCJ, it doesn’t mean any of the lenders below will 100% be suitable for your circumstances.

  • Why Switch Mortgage Finance

    When you have adverse credit its important you seek help from a mortgage broker. The last thing you want to do is apply with the wrong mortgage lender. This can cost you time, money in application fees and damage your credit score. A mortgage broker will know which lender your particular circumstances will suit, ensure a smooth application and get the result you wanted at the end of the process. 

Why Switch Mortgage Finance