Can You Get a Mortgage with a CCJ?

Each CCJ stays on your credit file for about 6 years - even if you repay them faster. But, you can get your CCJ removed sooner if:

• The CCJs on your record are an error: you can appeal to the credit referencing agency and get a notice of correction added to your credit report if you think a CCJ is wrong. If you never received the CCJ but one suddenly appears on your file, you need to reach out to the court where the CCJ was originally filed
• You paid the CCJ within 30 days: if you pay the full amount of the CCJ within 30 days, you can apply to have it removed from your credit file immediately
• The CCJs are over 6 years old: as long as they’re settled, they should automatically fall off your credit file 6 years after the date of the CCJ. But if you see them on your file after 6 years, ask the credit referencing agency to remove them
• You successfully disputed the CCJ: if you dispute a CCJ and the court agrees, it should be removed from your credit file

You might have a CCJ if:

• You've been taken to court by someone you owe money to and the court ruled in their favour
• You didn't go to the court hearings because you couldn't afford to, or you didn't think you owed the money
• The court sent you a notice saying you had a CCJ, but you didn't respond to it
• The court issued a default judgment against you because you didn't respond to the claim

If any of these things have happened, then you may have a CCJ. To find out for sure, you can check your credit report via credit reference agencies like Experian, Equifax or TransUnion. It will show any CCJs against you, alongside other information about your credit history.

You can also check if you have a CCJ by accessing the Register of Judgements, Orders and Fines, but there is a small fee to do this.

Lenders will consider a number of factors when assessing your CCJ(s), including:

• The date of your CCJ(s): one of the most important elements related to a CCJ is the date of registration. The greater amount of time that has passed since the CCJ was issued, the better the likelihood of being approved for a mortgage. Many lenders also require that it be settled for 12 months or longer, but there are some that will still lend with a CCJ that has been resolved less than 12 months ago
• How many CCJs you have: in most cases, when you apply for a bad credit mortgage, the lender will not consider applications with more than 2 CCJs registered in the last 2 years. There are some lenders that will accept more CCJs if you’re able to provide a larger deposit
• The amount of the CCJ(s): the size of your CCJ can play a role in how much of a deposit you’ll need to put down, with larger amounts sometimes resulting in higher deposit requirements
• Whether the CCJ has been satisfied: lenders' requirements for those with CCJs will differ, though getting a mortgage with a satisfied CCJ will be much easier. If it's unsatisfied, some lenders may require payoff before considering your mortgage application. Others only require that the CCJ be at least 2 years old

There are things you can do to improve your chances of being approved for a mortgage, even if you have CCJs.

• Save up for a larger deposit: you'll typically need a larger deposit for bad credit, to offset the risk associated with having CCJs. It can also help you qualify for a lower mortgage rate
• Improve your credit score: if you have CCJs, there's a good chance your credit score has been negatively impacted. Improve your credit score to buy a house by paying all your bills on time, being mindful of credit card limits and signing up for the electoral roll
• Look for a bad credit mortgage specialist: there are adverse credit lenders who specialise in helping people with CCJs get mortgages. These lenders are more likely to look at your application favourably. It’s best to use a bad credit mortgage broker like John Charcol to make sure you find the right lender for your situation
• Work on your financial situation: most lenders will also take into account your current financial situation when reviewing your mortgage application. This includes your income, employment history and other debts you may have. While having a CCJ can impact your ability to get a mortgage, showing that you haven't had any other financial difficulties and that you have a steady income can help offset this

The amount you can borrow with a CCJ depends largely on the details of your CCJs as well as your income and deposit amount. Your broker will be able to review your situation and confirm your maximum borrowing amount with the lender.

While it may be difficult to get a mortgage with a CCJ from a traditional high street lender, there are still options. You could quickly be declined for a mortgage from a bank like HSBC, but be approved by a specialist bad credit lender. So, it's important to compare your options and find a bad credit mortgage that best suits you.

John Charcol has access to a whole market of these specialist lenders. We understand that having a CCJ can make it difficult to get a mortgage, so we'll do everything we can to help you find the right solution for your needs. We work with bad credit mortgage lenders to help you find the best deal possible and we'll support you through the application process from start to finish. If you're looking for a mortgage with a CCJ, get in touch with us today on 0330 433 2927.