Getting a Mortgage With a CCJ

Getting a mortgage with a County Court Judgement (CCJ) against your name does make the process a little more tricky, but it’s still very much possible.

There are various options available, and this guide will outline them for you, including the criteria you’ll need to meet, where to get professional advice, and more.

Can you get a mortgage with a CCJ?

Yes. Getting a mortgage with a CCJ on your credit file is still possible, although it is an added complication that usually results in higher interest rates.

This is due to the increased risk on the mortgage lender’s part that you may miss some monthly repayments. As a result, they might up your interest rate to help offset the risk they’d be taking on.

Factors such as how recently you were issued a CCJ and how much you owe affect your chances of getting a mortgage.

There is a rising number of lenders who specialise in offering mortgages to applicants with CCJs, and a bad credit mortgage broker can help you find the best deal.

Will it help if your CCJ is satisfied?

Yes. It will undoubtedly increase your number of approachable mortgage lenders. Put another way, once you’ve proved you have paid off your CCJ in full, you will improve your chances of being accepted for a mortgage.

You will also stand a better chance of securing a favourable interest rate than you would with an unsatisfied CCJ hanging over your head.

How can you improve your chances of success?

Having a regular, stable income, a clear credit history since the CCJ, and having paid it off prior to applying will all increase your chances of being accepted for a mortgage.

In addition, there are several other steps you can take, such as:

The majority of the mortgages available to those with a CCJ tend to be residential; however, buy-to-let and remortgage options are also accessible.

Lending criteria

Where lending criteria is concerned, the majority of mortgage providers have a limit on the amount of CCJ debt you can have and still qualify for a mortgage.

The debt owed that a lender will accept usually ranges from between £300 and £10,000, with the rate offered varying based on the total sum.

In addition, the amount of deposit you can put down will impact whether a lender is likely to offer you a mortgage. The more you can part with, the better your chances of approval and most lenders will insist on more than the minimum for this type of bad credit.

This is in addition to the standard eligibility requirements, such as age, credit rating, income, and property type.

All lenders have specific eligibility requirements for their CCJ products; however, a mortgage broker can match you with the best one based on your individual circumstances.

What to do if you’ve been declined for a mortgage because of a CCJ

The most important thing to do after being declined for a mortgage because of a CCJ is to avoid rushing into applying for another and risking being rejected for that as well by another lender.

If you have two rejections in quick succession you will further decrease your chances of being accepted and could damage your credit report.

Your best course of action after your first rejection would be to contact a mortgage broker and ask them to identify exactly why you were turned down. This will help you avoid making the same mistake the second time around with a different lender.

Your broker will take the lead if there are grounds to appeal against the lender’s decision. Still, they will also explore whether moving to another lender – such as a specialist bad credit mortgage provider – is in your best interest.

It is also important to remember that after six years, your CCJ will be removed from your credit report, which means lenders will no longer be able to see it and reject you based on that.

Once your CCJ has been removed, your credit score will increase, which will improve your overall application from a mortgage lender’s perspective.

Speak to an expert about CCJ mortgages today!

Simply put, you’ll need a broker to get a mortgage if you have a CCJ on your file, whether satisfied or otherwise.

Ideally, you’ll want to find a mortgage advisor who specialises in helping people with CCJs get onto the property ladder. Through our broker-matching service, we’ll match you with an expert who fits the bill. It’s free to use and could save you time, money, and potential disappointment in the long run.

Call 0330 822 0505 or make an enquiry, and we’ll set up a free, no-obligation chat between you and your ideal mortgage broker today. We don’t charge a fee, and your credit rating has no further obligation or marks.