Mortgages with a CCJ

A CCJ, also known as a County Court Judgement, is a court order that is served against you when you fail to repay money that you owe, usually after other attempts to recover debts have failed. You’ll be required to pay off your debt either in installments or in a single lump-sum.

After your CCJ has been satisfied (where no money is owed), it will still show on your credit file for six years. Which can make applying for any type of credit, including a mortgage, and other financial products more difficult because you are seen as a higher risk than someone without.

A CCJ is not the same as an IVA (Individual Voluntary Arrangement), however, it is not uncommon for both to show on your credit file, given that CCJ debt is often included in this.

A CCJ will stay on your credit file for six years from the date that it was served, and will be removed automatically after this period. It’ll be there even if you pay off the CCJ in full within six months, meaning that lenders will see this when running a credit check on your name.

In some rare instances, it may be possible to get a CCJ removed from your credit file if you meet strict criteria.

A CCJ makes you look ‘high-risk’ to a lender. That’s because it signals to them that in the past you haven’t been able to keep up with another payment. A CCJ may mean that the rates on offer to you aren’t as competitive, or that you’re not allowed to borrow as much which means you might need to put a bigger deposit on your home. 

Working with a specialist broker in this situation is important because they’ll help you understand what options are open to you.

In some circumstances, yes, you can. If you think a CCJ has been registered on your account by mistake, or unfairly, contact the three credit reference agencies; Experian, Equifax and TransUnion to remove a CCJ from your credit profile. 

You need to be able to prove that:

• You paid the full amount within one month of the CCJ being issued

• It’s been six years since you received the CCJ

• An insurance company was responsible for the debt

• You disputed the CCJ and it was cancelled or ‘set aside’ by the court

How much deposit you’ll need to put down will depend on your individual situation, and will vary between lenders. Lenders have their own criteria to work out how much of a risk it would be to lend money to you with a CCJ. 

Generally, the more money you can put down up front, the less of a risk you pose. This is especially the case if you have a CCJ. The bigger your deposit, the less money you’ll need to borrow (LTV), and the better your interest rate will be. Having a bigger deposit shows the lender that you’ve been savvy with your savings, and have got a good grip on your finances.

However, if you can’t save a lot of money for a deposit, there are schemes available such as Help to Buy and Shared Ownership which only require a smaller amount up front. You can read more in our guide: Help Schemes for First Time Buyers.

Yes, you can remortgage with a CCJ! But you just might need a bit more help getting the right mortgage compared to someone with a better credit score. 

Most mortgage lenders and banks will look at your remortgage application in the same way they would if you were applying for the first time. Many high street lenders will look at a CCJ as an indicator that you’re not great with credit and might decide they don’t want to take the risk. But it’s a big misconception that if you try to remortgage with a CCJ then it’s an automatic ‘no’. 

There are plenty of specialist lenders who’ll look at your mortgage application in detail, rather than automatically reject you based on your credit score. The specialist mortgage market isn’t well known because often specialist lenders aren’t available directly to borrowers. They don’t advertise because they’re only available through specialist mortgage brokers who can help people that have a complex situation. 

If you’re looking to remortgage with a CCJ, it’s a good idea to work with a specialist mortgage broker because they have access to specialist mortgage lenders - the ones with the better deals for people like you.