Getting a mortgage is one of the biggest decisions you’ll make in your life. Not only is it a loan you’ll likely be paying back for decades, there’s also the difficult application process to go through.
One of the questions a lot of people ask when they’re applying for a mortgage concerns County Court Judgements (CCJs). Can you get a mortgage with a CCJ? Will you need a bigger deposit if you have a CCJ? Does having a CCJ limit how much you can borrow? In this article we’ll tackle the tricky issue of getting mortgage with a CCJFind your buddy
Can I get a mortgage if I have a CCJ?
Probably, yes. But let’s not beat about the bush here – it will probably complicate things slightly with your application, but definitely don’t give up.
There are so many CCJ mortgage lenders and types out there nowadays that you’re likely to find one that fits your particular circumstances. Some lenders specialise in offering mortgages for people with CCJs and other credit history challenges, and all lenders have their own criteria for what they deem ‘creditworthiness’ to look like. So if you’re worried about getting a mortgage with a CCJ, it’s usually just a case of finding the right provider for you.
Lenders will also assess the entirety of your mortgage application, so it’s worth taking the time to get your application spot on to give yourself the best chance of getting your mortgage. It can also be really beneficial to get yourself a Mortgage Buddy to help you through the process.
Whatever your situation is, there are always a few things to bear in mind if you’re thinking about getting a mortgage with a CCj:
How old is your CCJ?
This is one of the most important details to know when deciding if you can get a mortgage with a CCJ. As a rough guide, if your CCJ is more than three years old, that’ll simplify your application. And beyond six years old the CCJ disappears from your credit report so won’t trouble your application at all. If you’ve had a CCJ in the last 12 months, that makes things trickier.
However, even with a recent CCJ, you could still get your mortgage if you have a sizeable deposit. Speaking of which…
Does a CCJ affect the deposit I need for a mortgage?
When assessing your deposit, CCJ mortgage lenders are very similar to other mortgage lenders. Essentially, the bigger your deposit, the less your CCJ will matter for your application. If your CCJ was registered in the last 12 months, you would probably need a deposit of at least 25%. If you have the more standard 5% deposit, your CCJ would ideally need to be more than 3 years old.
How much can I borrow with a CCJ?
When asking’ can i get a mortgage with a CCJ’ the next question you ask will often be ‘Okay, how much can i borrow?’ There aren’t any hard and fast rules dictating how much you can borrow for a mortgage if you have any CCJs. Lenders assess a wide range of information to decide how much you can borrow, including:
- How many CCJs you have
- How old they are
- How big they are
- Whether or not the CCJs have been satisfied.
Having looked at all of this, the lender should then tell you their maximum loan to value (LTV) – this is the difference between the value of the property you want to buy and the amount you need to borrow for the mortgage, as well as whether or not you can get a mortgage with your CCJ.
Here’s a rough guide to the amount you might be able to borrow if you have a CCJ:
- If you have a CCJ some lenders could only let you borrow 4x your annual income
- If you have CCJs that are more than two years old, you could borrow up to 5x your annual salary from some lenders.
How big is your CCJ?
Size is another key detail lenders will use to decide if you can get a mortgage with a CCJ. If your CCJ is older than three years old, then you’re in luck – lenders generally aren’t too bothered about the size of a CCJ that’s this old.
It’s when your CCJ is more recent that things get a bit more complicated. There might be limits to the amount mortgage providers will lend to you if your CCJ is around 12 months old. As a guide, for CCJs that are less than 12 months old it’d ideally be less than £1,000 before affecting your application too much.
How many CCJs do you have?
Some lenders have a maximum number of CCJs they would consider for you to apply for a mortgage. Above that number and they simply won’t progress your mortgage application.
Other lenders are more flexible. They will assess the number, size and age of your CCJs to figure out if they can lend to you. The size of your deposit also plays a part here. If you have multiple CCJs, a deposit of around 25% and above could help get your application over the line.
Has your CCJ been satisfied?
A satisfied CCJ is one which has been paid off. It should be no surprise to learn that lenders are more likely to lend to you if your CCJs are satisfied – this shows the lender that you’re a reliable borrower and that you should make your repayments. It’s also worth remembering that a satisfied CCJ disappears from your credit file after six years.
Getting a mortgage from a satisfied CCJ mortgage lender.
Some lenders insist that CCJs are satisfied before assessing your application. These lenders tend to either:
- Insist that your CCJs have been satisfied at least 12 months ago
- Or they’ll lend as long as you satisfy the CCJs before they approve your application.
Getting a mortgage with an unsatisfied CCJ
If you have any unsatisfied CCJs, lenders will look at other factors like the age of the CCJs. Some specialist CCJ lenders will accept applications with unsatisfied CCJs that are at least two years old.
For more information on if you can get a mortgage with a CCJ or other defaults, and how to go about it, go to our bad credit mortgage page. Or fill out the form below to get in touch with one of our expert CCJ Mortgage advisors for some free advice and a quote based on your requirements and situation.