Can I get a mortgage with a CCJ?

We are an independantly owned brokerage offering first charge mortgages to the whole of the market.
1 Step 1
FormCraft - WordPress form builder

Article created by Christian Duncan, Director – Mortgage and Protection Adviser
Last updated 21st December 2023

Table of Contents

How to Secure a Mortgage with a County Court Judgement (CCJ)

Navigating the complexities of mortgages with a CCJ

Securing a mortgage can be a daunting process for any potential homebuyer, but for those dealing with a County Court Judgement (CCJ), the journey might seem even more challenging. A CCJ on your credit file can raise doubts about your financial reliability, and yet, it isn’t a definitive barrier to homeownership.

In this comprehensive guide, I’ll delve into the possibilities of obtaining a mortgage with a CCJ, outline practical steps to improve your chances, and offer insights into navigating the mortgage market with a CCJ. With the right approach and guidance, a dream home isn’t out of reach, even when your credit history isn’t flawless.

Understanding a CCJ and its Effect on Mortgages

A County Court Judgement, commonly known as a CCJ, is a type of court order in England, Wales, and Northern Ireland that can be registered against you if you fail to repay money you owe. This judgement stands as a significant mark on your credit file, signalling to lenders that you’ve had past difficulties repaying debts, which inevitably affects how they view your mortgage application.

How long does a CCJ last?

A CCJ will sit on your credit report for a period of 6 years.  This is from the date registered not the date satisfied.  While it’s on your report it will impact your chances of securing any type of finance. It can also prevent you being a guarantor and even starting certain types of jobs.  


Is it Possible to Secure a Mortgage with a CCJ?

Yes, attaining a mortgage with a CCJ on your record is possible. Though your options might be narrower, and you could confront higher interest rates, certain lenders specialise in poor credit situations and are willing to work with those who’ve encountered financial missteps.

Steps to Enhance Mortgage Approval Chances with a CCJ

  1. Seek Expertise from a Mortgage Broker Specialising in Bad Credit: Engage with a broker experienced in securing finance for customers with CCJs. They can offer tailored advice, identify lenders receptive to your situation, and assist with the complexities of your application.
  2. Review and Optimise Credit Reports: Access your credit report, check for inaccuracies, and take steps to improve your score. Paying off existing debts and ensuring you’re registered on the electoral roll are moves you can make toward building healthier credit.
  3. Understand Lender Criteria: Each lender has unique eligibility requirements. Some may accept recent CCJs with a lower value, while others might only consider older, satisfied judgements. A well-informed broker can match you with a lender suited to your specific circumstances.
  4. Save Towards a Larger Deposit: The bigger your deposit, the better your chances of mortgage approval. A substantial down payment can offset the risk lenders take when dealing with applicants who have a CCJ.
  5. Explore Niche Mortgage Lenders: Mainstream / High street lenders might shy away from a CCJ-laden application, but numerous building societies and specialist lenders are more accommodating of complex credit histories.

Potential Interest Rates and Eligibility Factors

Interest rates for mortgages tied to CCJs reflect the perceived risk by the lender. It’s crucial to maintain realistic expectations—rates may be higher than those offered to individuals with stellar credit.

Eligibility will vary, but lenders may examine:

  • The Age of the CCJ: The more time that has elapsed since the registration of the CCJ, the more lenient lenders tend to be.
  • The Size and Satisfaction of the CCJ: Smaller, satisfied CCJs are less of a concern to lenders. Some might require that the CCJ be settled for a set period before considering an application.

Getting a Shared Ownership Mortgage with a CCJ?

Having a CCJ and buying or remortgaging a property under a shared ownership scheme is possible.  If you’ve done any kind of research into shared ownership mortgages you’ll already know that not all lenders are comfortable with the shared ownership.  When you add two sets of unique circumstances into the mix (bad credit / CCJ and shared ownership) this will make your case a little more difficult to place but not impossible.  It will also reduce the amount of lenders available to you.  This doesn’t mean your rate wont be competitve.   

Can I get a Mortgage with a CCJ whilst being self employed?

Being self employed and having a CCJ wont stop you getting a mortgage.  There are plenty of adverse credit lenders out there that will work with self employed applicants.  Some will average your latest two years SA302s and Tax Year Overviews and some will calculate your affordability based on your latest years figures.  This is great for anybody who’s self employed with a business thats profits are increasing.  Having a CCJ and being self employed doesn’t need to stop you securing a mortgage.  Regardless of whether the CCJ is satisfied or not.  

The Role of a Bad Credit Mortgage Broker

Navigating a mortgage application with a CCJ is not a journey you have to undertake alone. Specialist mortgage brokers bring expertise and insider knowledge, positioning themselves as invaluable allies in finding a product that aligns with your situation. They work with clients to surmount bad credit hurdles and access suitable mortgage deals.

Final Takeaways

A CCJ may be a hiccup in your financial history, but it doesn’t have to obstruct your path to homeownership. By taking proactive steps to improve your credit, partnering with a specialised mortgage broker, and adequately preparing for the application process, you can enhance your odds of receiving a mortgage offer.

As you consider the potential to secure a mortgage with a CCJ, it’s essential to reflect on the given information, consult with a mortgage broker who possess a clear understanding of your financial goals. With dedication and due diligence, achieving your goal of purchasing a home, despite the challenges of a CCJ, is well within reach.

For further guidance and tailored advice, it’s advisable to consult with a mortgage broker experienced in handling CCJ-related mortgage applications. With professional support, you can navigate the mortgage market more confidently and work towards securing the keys to your future home.

Why Manchester Mortgage Centre