Can you Get a Mortgage with a CCJ?

Applying for a mortgage with a CCJ can be a complex process since there are so many different factors lenders use to assess your application. However, this doesn’t mean it is impossible to obtain a mortgage.?

My team and I pride ourselves on helping individuals get on the property ladder, no matter what kind of financial situation they’re in.

What is a County Court Judgment (CCJ)?

A CCJ is a court order given to you if you owe someone, usually a creditor, money.?

You will receive information about your CCJ in the post, at which point you can choose:

• To pay back the full amount straight away;
• Ask to pay later in instalments;
• Dispute the claim or amount owed;
• Claim against the creditor.

If you ignore a CCJ or don’t meet the terms of it, the courts may take more serious action against you.

Can you pass a credit check with a CCJ?

Yes, you can still pass a credit check with a CCJ. If you paid off your CCJ immediately, then it won’t show on your credit file, although any defaults that led up to your CCJ will be visible.?

Having a CCJ on your file will lower your credit score, but this doesn’t mean you won’t pass a credit check and many applicants with poor credit scores are still able to get mortgages. You will likely have to meet other specific criterias though, in order to obtain a mortgage.?

Does a CCJ stop you from getting a mortgage?

No, you can still get a mortgage even if you have a CCJ, but it can be harder to obtain than it would be if you had a good credit score. However, getting a mortgage with a CCJ does depend on several factors.?

One of the key factors with success is how recently the CCJ was registered. Typically, the older it is, the higher chance of success you will have.

If you have more than one CCJ, this can make it even more difficult to get a mortgage since a limit of late or missed payments will reduce your mortgage options.

Can you get a mortgage with a satisfied CCJ?

Yes, if the CCJ has been marked as satisfied, you will have an even better chance of getting a mortgage.?

As long as you have a regular income, and no other serious issues with your credit history, there should be no reason as to why you couldn’t get a mortgage with a satisfied CCJ.?

Can I get a joint mortgage with a partner if I have a CCJ?

It can be difficult to get a mortgage with your partner if you have a CCJ, but this doesn’t mean it is impossible and it can all depend on how severe recent credit issues are.?

A lender may decline anyone who’s had a CCJ in the last 12 months, whereas another lender may approve the application regardless of the CCJ.?

You may have to shop around a bit harder to find a lender who will accept your application despite the CCJ.

Does the size of a CCJ affect a mortgage application?

If your CCJ was registered over three years ago, the size of it shouldn’t really have an impact on your mortgage application. However, if your CCJ was within the last 12 months, then there may be limits to how much you could borrow.

Again, how the size of your CCJ will affect your mortgage will vary from lender to lender. Some lenders will only lend if the CCJ was below ￡3,000 and was over a year ago, whereas others would consider a very recent CCJ if the amount was less than ￡1,000.

Your CCJ value could also affect the deposit you’ll need. If you have a very large CCJ, then you may need a deposit of at least 30%.?

This is where speaking to an experienced mortgage advisor can really help. Our team will take the time to understand your situation and help to find the most suitable lender for your financial state.

Does the date of a CCJ affect a mortgage application?

The more recent your CCJ is, the more likely it is to affect your chances of getting a mortgage.?

For example, if it happened a number of years ago and you haven’t had any financial trouble since, a lender will usually be more forgiving than if you have had a CCJ within the last 12 months.?

Do I need to satisfy my CCJ before I can get a mortgage?

Satisfying your CCJ can be a bit of a grey area since some lenders will require you to satisfy it before, while others lenders won’t.?

If you have satisfied your CCJ or it was registered over two years ago, you will have more lenders to choose from than if you were still paying it back.?

What is the best way to get a mortgage if you have a CCJ?

There are few ways to increase your chances of securing a mortgage with a CCJ.?

These include:

• Improving your credit score: In the months building up to applying for a mortgage, it’s a good idea to tidy up your credit file. Try to prove to lenders that you can manage your debts responsibly. If you have any credit cards, ensure you’re paying all of your bills on time.?
• Save for a bigger deposit: Although this is generally easier said than done, you have greater chances of getting a mortgage if you have a higher deposit amount. The greater deposit you have, the more lenders will be open to consider your application.?
• Get specialist advice: Getting a mortgage can be difficult, even for those who have a good credit score. Save yourself any stress by getting advice from specialist mortgage brokers. Get in touch to discuss your specific needs in more detail.

Which lenders will give you a mortgage when you have a CCJ?

Although lenders have their own criteria to satisfy, with some being more lenient than others, it is unlikely you will be able to get a mortgage with high street bank lenders when you have a CCJ.?

Instead, you will have to find lenders which have specialist products made for applicants with CCJs. Again, this will depend on the severity of your CCJ, and other factors such as how many CCJs you have and whether they have all been resolved.?

We can help to find these lenders and offer you the best chances of securing a mortgage. We can also increase your chances of securing a mortgage by working with a specialist mortgage brokers like us.?

Barlow Irvin Financial Services have years of experience working with individuals in difficult situations that could affect their chances of getting a mortgage, such as CCJs.

Contact me or another member of our award-winning team if you need expert mortgage advice.

As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.