Can I get a mortgage with a CCJ?

If your mortgage application has been declined because you have a County Court Judgement (CCJ) against you, it’s still possible to get a mortgage with a CCJ. While many traditional lenders refuse to offer mortgages to people with an open or recent CCJ, there are some specialist lenders which have a greater appetite for risk than those on the high street and may be more willing to lend.

Because there is more risk involved for the lender, you’ll probably have to pay higher interest rates or a larger deposit if you have a CCJ. So, it’s crucial to remember that you should get a mortgage only if you can afford the monthly repayments. If you can’t, your home may be at risk.

What is a CCJ?

A CCJ is an order is issued against you by a court if you have failed to repay any money you owe. This can be for a range of issues, from simple debts, missed bills or repayments to not being able to keep up with an agreed credit plan.

If you owe money, the creditor can apply for a CCJ against you if they think you won’t repay what you owe them. If the court finds in favour of the creditor, it will issue a CCJ against you to order you to pay what you owe.

Once you receive a CCJ notice against you, you can either pay back the money you owe in full or apply to the court to pay it back in instalments. If you don’t think the claim is correct, you can either dispute the amount in court or issue a counterclaim against the creditor (if, for example, you believe they have broken the terms of a contract or even owe you money).

If you fail to respond to a CCJ or don’t meet its terms, the court can take enforcement action to recover the money on behalf of the creditor, which may include repossessing your belongings.
Unfortunately, a CCJ that’s less than six years old will appear on your credit record and affect your credit score, which could impact your chances of getting a mortgage.

But don’t worry. My Mortgage Pro can help you access what’s known as a bad credit mortgage, (link to bad credit mortgages page once built) even if you have a CCJ.

How do bad credit mortgages work?

Bad credit mortgages are just like regular mortgages, but because there is more risk involved for the lender, they tend to come with higher interest rates and stricter limits on how much you can borrow.

That’s because the risk is mitigated by the higher interest rates and larger deposit you pay. If your credit score is high, lenders will view you as less of a risk and so your chances of getting a regular mortgage, with lower interest rates, approved are higher.
If you have a low credit score – because you have a recent CCJ against you, for example –
lenders will view you as riskier, meaning your options narrow.
There are many types of bad credit mortgages available, including fixed, variable, and discounted rates.

The interest rate you’ll pay, and the amount you’ll be able to borrow will vary from lender to lender and will depend on your credit score. My Mortgage Pro can connect you with an expert mortgage broker who specialises in helping borrowers with CCJs. They’ll work with you to gain an understanding of your circumstances and credit history, give you the right advice and guide you through the process, to help you find the best mortgage deal.

How do I get a mortgage with a CCJ?

If you repay the full amount requested by the CCJ within one calendar month of it being issued, it won’t appear on your credit record.

Likewise, if you dispute it and persuade the Court it was issued in error, the CCJ could be set aside and not appear on your record.
So, responding quickly to a CCJ is always the best option. However, if you have a CCJ against you, the best rates and the number of mortgages available to you will be more limited. But, with the right support, you should still be able to find one that’s right for you.
So, it is possible to get a mortgage with a CCJ, but you’ll need to demonstrate to the lender that you can afford the repayments and can manage your finances sensibly.

To get a mortgage with a CCJ, you’ll need to show the lender that you are a responsible borrower. Aside from the CCJ, if you have a good record for meeting all your regular payments on time, reducing your monthly outgoings, and not taking on any new debt, it will help. The more you can save for a deposit the better, too.

Contact us for more information about getting a mortgage with a CCJ

My Mortgage Pro is a professional mortgage information service. While we don’t give advice, we aim to provide you with simple, jargon-free, no-nonsense information about successfully applying for a mortgage with a CCJ to help you make the right choice. We can also connect you with a specially selected panel of leading mortgage advisers, who are authorised and regulated by the Financial Conduct Authority, who will provide advice tailored to your specific circumstances and help you find the right mortgage, fast.

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