Getting a Mortgage With a CCJ
Many people believe that it is impossible to get a mortgage with a County Court Judgement. As specialists, our in-house advisors can help you secure a mortgage even if your CCJ is outstanding.
Contrary to popular opinion, securing a mortgage with a CCJ is much easier than it once was. Whether or not you will get a mortgage approved depends on several factors, ranging from the number of CCJs against your name, and the date in which they were registered to the percentage of the deposit you have available.
We have experience in helping a variety of people with a range of different circumstances find the right mortgage for them. Simply complete our online contact form or call us on 0121 4000 052 to discuss your circumstances and how we can help.
County Court Judgement FAQ
What is a CCJ?
CCJs, also known as County Court Judgements, are judgements handed down by the courts. They are brought about by a creditor who doesn’t believe that you will repay money owed. CCJs require you to pay any outstanding fees to the creditor.
What happens when you are issued a CCJ?
When you are issued a County Court Judgement, you have four options:
- Make a full payment immediately – this will prevent your details being added to the register
- Request to make payments in instalments or at a later date
- Make a claim of your own against the creditor – this can be done if you believe that they owe you money
- Dispute either the claim or the amount owed – this is a possibility if you believe the claim to be incorrect
Failing to meet the terms of your CCJ, or ignoring it, may lead to more severe action being taken against you.
How long does a CCJ last?
Whether or not you pay your CCJ, it will stay on the Register of Judgements, Orders and Fines for six years, starting from the day the judgement was issued.
Throughout this timeframe, anyone can pay a small fee to ascertain whether or not you are included on this register. It will also appear on your credit file and is taken into account when you are applying for a mortgage.
The County Court Judgement will be removed from your credit file and the register, even if you have been unable to pay the entirety of the debt owed after six years have passed.
Can I get a mortgage with a CCJ?
Gaining acceptance on a mortgage in any situation can be a tough process but if we cant help at ams: it’s not possible; the addition of a CCJ makes things much more difficult. However, obtaining the help of our experts can significantly increase your chances of approval.
How badly does a CCJ affect credit?
A CCJ will reduce your credit score by approximately 250 points. Your credit score essentially acts as a risk calculator, and mortgage providers use it as part of their decision-making process – the higher your credit score, the lower the risk of lending to you. Therefore, a County Court Judgement has the potential to reduce your chances of being approved for a mortgage; but it does not make it impossible.
How long after a CCJ can I get a mortgage?
Lenders will be more flexible the ‘older’ your CCJ registration. You will be more likely to be approved for a loan if your Country Court Judgement was registered two years ago or longer, rather than a few months ago. While a new CCJ will not make getting a mortgage impossible, it will make it substantially more difficult. However this is our market and if we cannot help then its not possible.
Some lenders will require your County Court Judgement to be satisfied before they will consider approving your mortgage. We can offer CCJ advice around the best lenders to approach wherever you are in your CCJ journey.
Does a CCJ affect the deposit I need?
Regardless of your circumstance, the higher the deposit you have saved, the higher the chances of successfully gaining a mortgage. The deposit required will depend on the age of your CCJ and the lender you are applying to. We can advise on how much deposit is likely to help you gain a mortgage once we understand your position. Typically 10-15% deposit.
Does the number of CCJs impact getting a mortgage?
Yes, however we are a whole of market broker which effectively means we have access to every mortgage possible – so if we cannot help then its not possible … call one of our advisors now where they will be more than happy to talk you thru your options
Luckily, not all lenders sing from the same hymn sheet, and our mortgage advisors can help you find the best deal.