Mortgage with a CCJ

Can I get a mortgage with a CCJ?

Yes you can. A CCJ (County Court Judgment) is one of the most serious credit issues and as such will naturally have an impact on a mortgage application. Getting a mortgage from a high street lender with a CCJ would be incredibly difficult. 

However there are several specialist lenders who are willing to lend to those with a CCJ. The details of the CCJ, such as when it was registered, the reasons for it, and whether it is cleared, will determine your chances of success when applying for a mortgage. In general, the longer ago the CCJ was registered, the better. You’re also more likely to be accepted if your CCJ has been cleared before applying, or is due to be cleared before the completion date, however this is not necessary with the majority of lenders.

How will a CCJ affect my mortgage application?

As with most bad credit issues, having a CCJ registered on your credit file will have a negative impact on your mortgage application, and for most mainstream lenders will result in an automatic decline.

This is why having prior knowledge of which lenders are likely to approve your application with a CCJ, and exactly what their lending criteria is – both around CCJs and in general – is incredibly important. Otherwise you may be applying with lenders who would not accept applications with a CCJ, and make the mistake of registering a series of application rejections, which would also harm your credit rating.

I know exactly which lenders will provide mortgages with CCJs, as well as each of their lending criteria. This means you will only ever apply with lenders where you fit the criteria and are likely to be accepted first time.

Do you have to declare a CCJ on your mortgage application?

Yes. Any debts must be declared when applying for a mortgage. It is a legal requirement to be completely truthful when applying for a mortgage. In addition, the lender’s credit checks will almost certainly identify any debts registered to you, including the CCJ, if one is in place.

How long after a CCJ can you get a mortgage?

Like most credit issues, the longer ago the CCJ was registered, the better chance of success you’ll have with your mortgage application. Whether the CCJ is cleared or not will also be a key factor. If you can pay your CCJ within one month of it being registered, you can request that the CCJ is removed from your credit file completely.

If you have a more recent CCJ and need to apply for a mortgage, there are a small handful of lenders who will consider your application, with some even willing to lend to those who have a CCJ registered within the last 12 months.

The timing of your CCJ will not only impact your chances of success, it will also be a key factor in the type of mortgage you are offered in terms of the required deposit and interest rate. I can talk you through your options and help you decide when might be the best time to apply for a mortgage with a CCJ.

Does your CCJ need to be cleared before you can apply for a mortgage?

No. If your CCJ can be cleared before applying for your mortgage, or on track to be cleared before completion, this will improve your chances of success. Some lenders won’t consider a mortgage until your CCJ has been cleared for a few years, but I work with many others who will.

The amount on the CCJ will also play a big part in your application. For example, a small CCJ of £500 which is not cleared may be seen as less of an issue compared to a larger CCJ of £10,000 which has been cleared.

What is the lending criteria for a mortgage with a CCJ?

Every mortgage lender will have their own unique lending criteria for mortgages where a CCJ is on the applicants credit file. Some lenders will only consider applications where the CCJ has been cleared for several years, while some are happy to lend to those with a more recent CCJ being registered. 

How much can you borrow with a CCJ?

The main things lenders will consider in terms of how much you can borrow with a CCJ will be your income and affordability. The CCJ itself doesn’t typically impact the overall amount you can borrow.

Having a CCJ when applying for a mortgage will impact the loan-to-value (LTV) which is the percentage of the property which you can mortgage against, with the deposit making up the rest of the amount.

What deposit will you need for a mortgage with a CCJ?

The offered LTV and deposit amount required will primarily come down to the specific circumstance of your CCJ, as well as other factors on your application. Generally, the longer ago the CCJ was registered on your credit file, the lower the required deposit will be. If your CCJ is cleared, this will improve your deposit options.

Different lenders will have their own rules around required deposits for mortgages with a CCJ, but the figures below is what you might typically expect to see:

Which lenders can provide a mortgage with a CCJ?

I work with a handful of specialist lenders who can provide a mortgage if you have a CCJ, each with their own criteria regarding the details of the CCJ, such as when it was started and whether it is cleared. 

Most lenders for CCJ mortgages will only consider applications which come via a broker, and each have their own lending criteria. This is why it’s best to get advice from a specialist broker before attempting to apply directly where a CCJ is considered, or any major credit issue in general.

Getting a Right to Buy mortgage with a CCJ

Buying your council house via the Government Right to Buy scheme is possible, even if you have a CCJ. Lenders will have their own criteria for Right to Buy mortgages where a CCJ is considered. I work with several lenders who will consider a Right to Buy mortgage where a CCJ is yet to be cleared.

Take a look at our dedicated Right to Buy mortgages with bad credit guide for further information, or get in touch and I can discuss your specific circumstances and let you know whether a lender is likely to accept your application.

Getting a Shared Ownership mortgage with an CCJ

Shared Ownership mortgages are a good option for getting on to the property for those with a smaller deposit. I work with several lenders who will consider applications for Shared Ownership mortgages with a CCJ. As with standard mortgages, the status of the CCJ will impact on the chance of acceptance and the deal offered.

If you have a CCJ and are considering a Shared Ownership mortgage, see our dedicated guide to Shared Ownership mortgages with bad credit, or get in touch to discuss your requirements.

How a mortgage advisor can help with CCJ

The role of a mortgage advisor, particularly for applications with a CCJ, is to match the buyer with the best lender depending on their circumstances and how that matches with lending criteria. This requires a full understanding of lending criteria, both around CCJ’s and in general.

I have decades of experience in helping those with CCJs to get a mortgage, and ensuring they get the application right first time, as well as getting the best deal available for them. 

For more information or to discuss your application, please call me on 01494 526 400 or complete my online enquiry form today.

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