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 a variety of options available and this guide will lay them out 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. It is still possible to get a mortgage with a CCJ on your credit file, although it is an added complication which 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, so 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 with a CCJ and how much you owed, do affect your chances of getting a mortgage.

There are a rising number of lenders who specialise in offering mortgages to applicants with CCJs and a bad credit mortgage broker would be able to help you in finding the best deal.

Will it help if your CCJ is satisfied?

Yes. It will certainly increase your number of approachable mortgage lenders. To put it 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 it having been paid off prior to applying, will all increase your chances of being accepted for a mortgage.

In addition, there’s a number of other steps you can take, such as:

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

Mortgage lenders who consider applicants with CCJs

At the time of writing (September 2021), there are 27 lenders who would offer a mortgage to an applicant with a CCJ. The maximum loan-to-value (LTV) available was 95% with interest rates at this LTV tier averaging around 3-3.5%.

At the 75% LTV tier rates did fall below 1.5%, however all the mortgages are subject to approval by the lender and depend on various criteria, which is harder to achieve for the higher LTV and lower rate products.

The best rates are usually exclusively available through bad credit mortgage lenders, as they have the flexibility to take the age, amount and reason for the CCJ on board before making a final lending decision. They also offer bespoke deals for customers with this type of bad credit.

To access these products it is wise to use the services of a specialist bad credit mortgage broker, as they will improve your chances of gaining access to the best deals available.

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 amount of 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.

As well as this, the amount of deposit that you are able to 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 all in addition to the standard eligibility requirements that you will need to meet such as age, credit rating, income and the property type.

All lenders will have specific eligibility requirements for their CCJ products, however a mortgage broker will be able to pair 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 have been turned down in order to avoid making the same mistake the second time round with a different lender.

If there are grounds to appeal against the lender’s decision, your broker will take the lead on that, but 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 bear in mind 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 on that basis.

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

Speak to an expert about CCJ mortgages today!

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

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

Call 0808 189 0463 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 there’s absolutely no further obligation or marks to your credit rating.