Can I get a Mortgage with a CCJ? | MoneymanTV

A County Court Judgment (CCJ) is a form of court order that can be registered against people in the United Kingdom, if they have failed to keep up any payments they owe and fall behind on arrears. Having this means that you must pay back the debt, at the rate the court decides.

Having a CCJ to your name can have a negative impact on your ability to obtain any kind of mortgage in Nottingham. That being said, the good news is that by enquiring for the help of a specialist mortgage broker in Nottingham, you may still be in with a chance.

Your mortgage advisor in Nottingham will want to discuss your situation, to get a complete view of you and your financial history, to recommend the best possible course of action to take, as you undertake the mortgage application process.

Of the mortgage lenders who are willing to possibly lend to someone with a CCJ, they will want to see how many CCJ’s you have registered against you, how much the CCJ was for, whether it has been settled or unsettled, how much deposit you have and how far away the registration date for the CCJ was.

What is a County Court Judgement (CCJ)?

A County Court Judgement is a legal decision that is put against you by the County Court, for failing to pay any outstanding owed money. Your judgement is entered onto the statutory Register of Judgements, Orders & Fines and will be checked by credit reference agencies, to determine your creditworthiness.

Of course, this is not just checked by credit reference agencies, as mortgage lenders will also be performing credit checks of their on you to ensure you are indeed credit worthy for such a large financial commitment. As such, having a CCJ can make getting a mortgage incredibly difficult.

Even an unsettled CCJ will eventually disappear from your credit file, but only after six years has passed. Whilst it may seem like a long time, you may still be able to get a mortgage before this time has passed, with the help of an expert in the field.

Can I still get a mortgage if I have a CCJ?

This is a question we find ourselves being asked quite regularly and the answer really does depend. If you were fortunate enough and you paid your debt within 30 days, the CCJ may possibly not even appear on your credit file at all.

For most people, however, the reason they got the CCJ in the first place, was because they couldn’t keep up financially, meaning they might not be able to pay off a CCJ so quickly. Whilst it can be a challenge, there might actually still be options for budding home buyers in Nottingham.

If the CCJ was recent and for a lot of money, this could lessen your chance of being accepted by a mortgage lender for a mortgage. Having a CCJ often gives the impression of bad financial habits.

Were there any issues with the creditor, was the CCJ because of missed mortgage payments, if you’re already a homeowner, how did it affect your ability to maintain mortgage payments, were you issued a CCJ for poor finances over a long period?

There are various ways you could improve your chances of being accepted by a mortgage lender. These include having a regular income, having a sufficient deposit, making sure your credit history is clear and well maintained after the CCJ, having the CCJ settled or at least starting to pay it off.

More and more mortgage lenders these days will cater to applicants who have CCJ’s in their name, but the biggest factor we find is how far away the CCJ was. Someone with only a year or two to go, may find their process easier than someone who was only issued the CCJ yesterday, for example.

Speaking to a mortgage broker in Nottingham can be key for your process, as they will find a mortgage lender that may be willing to accept you, CCJ and all, whilst also looking for the best mortgage deal, within reason, that is available for you.

Can I dispute a CCJ?

Sometimes you may wish to dispute the CCJ that has been issued against you, reopening the case and having it set aside. You should make sure you can supply enough evidence to make your claim in the first place, as it will likely cost you money to apply for this.

You can dispute your CCJ by submitting a form called an N244, which will go through to the court for review. If they do indeed agree that you should not have been issued the CCJ, it will be removed off the register and no longer affect your credit or be accessible by credit reference agencies.

Does the date of my CCJ make much of a difference?

If your CCJ is older than 6 years, it will be removed. The further away you are from the date that the CCJ was issued, the higher your chances are of passing a mortgage lenders criteria. For example, those who are perhaps more than 4 years from that date, will have a better chance than those only 1 year away.

Each mortgage lender will review CCJ’s differently. One may look at the date of which the CCJ was issued, whereas others may ignore this and only look at either when it was settled or if it was even settled at all. It entirely depends on the mortgage lender.

Can the CCJ be removed from my credit file?

You will need to prove that you paid the CCJ within 30 days of it being issued, if this is indeed how you proceeded, before it will be removed. If it has been over 6 years since you were issued the CCJ or you successfully disputed it, it will also be removed from your credit file.

If you were given a CCJ by mistake, perhaps you weren’t notified by the court and it has appeared on your credit file, you will need to let them know and get in touch with different credit reference agencies, so that a notice of correction can be added to your credit report.

How do I rebuild my credit score after receiving a CCJ?

After having something like a CCJ, you will no doubt want to rebuild your credit score somehow. This means you will need to be more careful with your finances, keeping up the CCJ payments and any other credit agreements you might have.

If you believe you could possibly be on course for missing a payment, you need to get in touch with the credit provider as soon as possible, to inform them of this and work on a plan together. Creditors are usually understanding and cooperative, so will want to work with you to keep both sides happy.

You will also want to make sure you aren’t making new applications for any credit all the time, as this can be a bad look if a hard search has been taken out on you. Furthermore, you want to make sure all of your details are up-to-date where appropriate, such as the electoral roll.

Check out our handy how to improve your credit score in Nottingham guide for further information that could be beneficial for anyone from a first time buyer in Nottingham, to someone looking to remortgage in Nottingham and more.

Date Last Edited: November 21, 2023