Before we start, the good news is that it’s absolutely possible to get a mortgage with a county court judgement (CCJ). Whilst a CCJ can feel very heavy on your credit file (whether new or historic) and you may feel as if securing a mortgage is impossible, with the right help from our specialist superheroes there’s often numerous options available.
There are lenders happy to offer mortgages to those with CCJs, but the type of mortgage you get and the rates you are offered could vary depending on multiple factors. If you have settled/repaid your CCJ in full, you may have more choice, but do not worry if you haven’t, there are still options out there for you too.
No impact on credit scores
As with all mortgage applications you will still need to meet the mortgage providers lending guidelines and affordability assessments. The lenders will also expect you to meet certain conditions on your CCJ. We have highlighted what these may be below:
How much time has passed since the CCJ was registered
It is much easier to get a mortgage with a CCJ that is over 3 years old versus a CCJ that is registered within the last 12 months. Thankfully there are lenders considering CCJs registered as recently as yesterday, in the right circumstances.
The size of the CCJ
Once the date of your CCJ has been considered, the lender will assess its total value. If your CCJ is over 3 years old the amount it is worth may not hold any relevance. But if the CCJ was less than 3 years old some lenders may only approve your application if it is less than £3000. For more recent CCJs the same lenders may need the amount to be under £1000.
The size of the CCJ will also impact the size of the deposit you will need. A very large CCJ may require a deposit of 30% or more. A deposit amount smaller than this may only be accepted if your CCJ is less than £1000.
Deposit amount
When it comes to bad credit, in general, the higher your deposit is the more risk can be offset which gives your chances of approval for a mortgage an increase. A deposit over 30% will give you the most flexibility with lenders when you have a CCJ. If your deposit is less than this the focus will be on how old the CCJ is and how much it is worth.
Number of CCJs
If your deposit is on the larger side of 25-35% then you will be able to secure a mortgage with a bad credit specialist even if you currently have multiple CCJs on your file, providing they are over 12 months old.
However, if you have a smaller deposit of around 5-10% lenders will only permit a maximum of two CCJs in the last 2 years. But if they were registered over 2 years ago then the mortgage process will be much less restrictive.
Unsatisfied vs. satisfied CCJ
Most bad credit mortgage specialists will not need the CCJ to be repaid if it has been over 2 years since it was registered, so you do not always have to rush to pay it off. But, high street lenders will want the CCJ to be repaid in full before they even look at an application from you.
If you have a satisfied CCJ it will be easier to obtain a mortgage but most lenders will want the CCJ to be paid in full before an application is prepared. Others may insist that the CCJ has been satisfied at least 1 year prior to the application stage.
Lenders really do fluctuate a lot when it comes to CCJs so the best thing to do would be to get in touch with one of our mortgage superheroes to show you what would fit best with your circumstances. We have included a chart below which shows some of the conditions you may need to meet before your application is submitted.
| Lender | Max LTV | When was the CCJ registered? | When was the CCJ paid off? | Adverse credit history conditions |
|---|---|---|---|---|
| A | 80% | CCJs from over 2 years prior ignored | Does not need to be repaid | N/A |
| B | 85% | Will allow 2 within the last 2 years but cannot be more than £1k in the last year or more than £2.5K in the last 1-2 years. CCJs are ignored over 2 years. | Does not need to be repaid | 2 defaults and late payments allowed (no more than 2 months late) |
| C | 95% | CCJs from over 3 years ago ignored. Straight decline if within last 3 years. | Does not need to be repaid | No adverse credit history in last 3 years allowed apart from some late payments |
As you can see, the bigger your deposit the higher chance you have of getting a mortgage with a CCJ.
We love assisting clients, especially those who have had difficulty finding the best deals elsewhere.
I applied for a mortgage from another organization after seeing an excellent offer online, but my application was declined due to my credit history. I am grateful to MoneyNest for connecting me with their broker, who discovered out what the problem was and now I am a client of theirs 🙂
I had a bad credit history and didn’t know how to apply for a mortgage. The superhero advisors from MoneyNest came into my life when they matched me with an agent who found the perfect lender willing to take on such risk, giving us both hope that there are still opportunities out here!
The rate that you will be offered will be down to multiple factors surrounding the CCJ. The table below indicates rates based on a mortgage amount of £150,000 over 30 years as of November 2021. It is best to seek advice from the superheroes we have on standby to find a deal for your circumstances. Follow the links to contact us and let us help you today.
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