Can You Remortgage with a County Court Judgement (CCJ)?

A CCJ (County Court Judgment) is issued against you by a creditor in an attempt to reclaim funds you have failed to pay. Depending on the judgment from the court, you may be offered the chance to settle the debt within 30 days. If you repay the debt, you can apply to the Register of Judgments and Fines, where the CCJ will be removed from the public register and your credit file.

If you’re unable to repay the debt within the given timeframe, the CCJ will remain on your record for 6 years. This will impact your ability to apply for credit, including getting a remortgage on your property.

The short answer is yes, you can remortgage your house with a CCJ, but it’s going to be more challenging. Recently, more lenders have been prepared to offer mortgage products to applicants with CCJs on their credit file. There are also some lenders who specialise in securing remortgages for those with adverse credit, but you will need to do your research to find out which lenders are more open to these types of applications. Our Bad Credit and Your Mortgage Options Guide may be helpful.

If you’re able to pay off the debt before the 30 day deadline, the CCJ might not even appear on your record anymore, leaving you free to apply for a remortgage without facing any issues. If it still appears, and you have repaid the debt, you can pay £15 to the credit agencies to add a “notice of correction” to your report. This can maximise your chances of remortgaging, as the potential impact of the CCJ will be mitigated.

If you’re applying for a remortgage once the 6 year expiration date for the CCJ has passed, it should automatically be removed from your credit file, leaving you free to apply for a remortgage without any issues.

If you’re attempting to remortgage while the CCJ is still on your credit file, you’ll need to work harder to secure a new mortgage product. While more lenders are willing to offer remortgages to borrowers with CCJs, they’ll still want to investigate it. Some will only be concerned with when the CCJ was applied, and others will want to know why it occurred. A lender might want to know whether your CCJ was linked to a previous mortgage or your property. They may also be interested in whether you have a history of poor credit management or whether you’ve taken steps to improve this over time.

Yes, CCJ mortgage interest rates are typically higher than standard mortgage rates. Lenders perceive applicants with CCJs as higher risk, leading to increased interest rates to offset potential financial uncertainty. However, the exact rate depends on factors such as the size and age of the CCJ, credit history and deposit amount.

A judgement in default is a CCJ that has been applied to your credit report without you being in attendance at court. 

If you do have an existing ‘judgement in default’ CCJ, you’re going to find yourself paying higher interest rates on your home loan.

To give lenders an opportunity to see that you’re managing your credit more successfully, ensure that you’re not regularly applying for credit and that you’re in receipt of a steady regular income.

If you find yourself in a position where you want to remortgage your property, you might want to acquaint yourself with a mortgage advisor. Here at John Charcol, we can help you search the market for a product that will suit your economic circumstances. An advisor can help you assess your finances and ensure you understand the implications of and terms of the mortgage before you proceed. We understand the complexities of remortgaging and can navigate you through the intricacies of remortgaging with a CCJ.

Making an application for a mortgage loan is not always going to be as easy if you have a CCJ, but it’s manageable. In circumstances such as these, you may find securing the services of a mortgage broker can help navigate you through the choppy waters. 

Call us today on 0808 239 9021 or request a call back, and an adviser will talk through all your options with you.