Will I Still Be Able to Have a Mortgage with CCJs on My Record?

Having County Court Judgments (CCJs) on your record can impact your ability to obtain a mortgage, but it doesn't necessarily mean you'll be ineligible for a mortgage altogether. 

Here's what you need to know: 

1. Impact of CCJs - CCJs are court orders issued against individuals who fail to repay debts, and they can have a negative impact on your credit history and credit score. Lenders consider CCJs as a sign of financial difficulty and may view you as a higher-risk borrower  
2. Lender criteria - each lender has its own lending criteria, including policies regarding CCJs. Some lenders may be more lenient and willing to consider applicants with CCJs, especially if the CCJs are small, old, or have been satisfied (paid off). However, others may have stricter criteria and may decline mortgage applications from individuals with recent or multiple CCJs  
3. Loan-to-Value (LTV) ratio - the loan-to-value ratio, which represents the percentage of the property's value that you're borrowing, can also impact your eligibility for a mortgage with CCJs. Lenders may be more willing to offer mortgages with higher LTV ratios to borrowers with clean credit histories, while those with CCJs may be limited to lower LTV ratios  
4. Interest rates - if you're approved for a mortgage with CCJs on your record, you may be offered higher interest rates compared to borrowers with clean credit histories. Lenders may view CCJs as indicative of increased risk and may mitigate this risk by charging higher interest rates  
5. Credit repair - if you have CCJs on your record, taking steps to improve your creditworthiness can increase your chances of being approved for a mortgage. This may include paying off outstanding debts, demonstrating responsible financial behaviour, and ensuring your credit report is accurate  
6. Specialist lenders - some specialist lenders cater specifically to individuals with adverse credit histories, including CCJs. These lenders may offer mortgage products designed for borrowers with past credit issues, although the terms and rates may be less favourable compared to mainstream lenders  
7. Seek professional advice - it's essential to seek professional advice from a mortgage advisor if you have CCJs and are considering applying for a mortgage. They can assess your individual circumstances, recommend suitable lenders, or mortgage products, and guide you through the application process  

There are very few lenders at the moment who are willing to consider mortgage applications from people with recent credit problems. 

There is currently one lender who will consider a mortgage of up to 60% of the purchase price if no CCJs have been registered in the last 2 years.  This would mean putting down a large deposit and waiting to apply. Even then there is no guarantee that a mortgage offer would be forthcoming. An alternative lender will go as high as 80% LTV, but the CCJ's have to have been satisfied for at least 6 months before you can apply. 

Without knowing the reasons behind why the CCJ's were registered, your current credit record and whether anything in your circumstances has changed I cannot give you a definitive answer and I recommend that you get a copy of your credit report from one of the major Credit Reference agencies: Experian, Equifax or Callcredit, the maximum cost to see your statutory report is £2 and you can view it online or get a copy by post, and then call 0808 303 5571 to speak to one of our consultants, they will then be able to advise you on your situation. 

Mortgage with CCJ's on My Record Summary

In summary, having CCJs on your record may present challenges when applying for a mortgage, but it's still possible to secure financing with the right approach. By understanding lender criteria, improving your creditworthiness, and seeking advice from a mortgage broker like John Charcol, you can increase your chances of obtaining a mortgage despite past credit issues. Call us on 0330 433 2927 for further help.