Can I get a mortgage with an unsatisfied CCJ? Yes, you can get a mortgage with an unsatisfied CCJ, but you may need to contact a specialist mortgage broker to help you with your application process.
Before diving further, we want to discuss this in detail. Firstly, you need to check if you have an unsatisfied CCJ or not. A CCJ or County Court Judgement is a court order for you to pay an outstanding debt to a certain creditor. It will remain on your credit file for six years unless you have paid off the debt in full or if the creditor has agreed to delete the entry from your credit file .
As Citizens Advice warns, once you have a CCJ against you, it is likely to affect your credit rating – so, making it challenging to secure credit in the future and, critically, a mortgage.
Simply having a CCJ against you, though, is by no means the end of the story. A record number of CCJs were issued in 2019, reported the Guardian newspaper recently – a volume that has doubled since 2012. A CCJ alone may not prevent you from getting a mortgage.
So, in this article on the topic “Can I Get a Mortgage with an Unsatisfied CCJ”, we will try to explore the topic in detail.
What is an unsatisfied CCJ and how will it affect my property-buying decision?
An unsatisfied CCJ (County Court Judgement) is a court order for you to pay an outstanding debt to a certain creditor. It will remain on your credit file for six years unless you have paid off the debt in full or if the creditor has agreed to delete the entry from your credit file.
Having an unsatisfied CCJ can negatively affect your ability to secure credit in the future, as lenders will view you as a higher risk. This could make it more difficult to be accepted for a mortgage or another type of loan.
Can I still get a mortgage with an unsatisfied CCJ?
Yes, it is still possible to get a mortgage with an unsatisfied CCJ, but it may take some time and effort to find the right lender who is willing to work with your situation.
It is worth noting that lenders will often require evidence of the debt being paid off or evidence that you are making regular monthly payments towards settling the debt before they will consider lending.
In addition, it’s important to remember that different lenders have different criteria when it comes to approving mortgage applications – for example, some may be more lenient if you have a CCJ, while others may take a more stringent approach.
You may also need to provide a larger deposit than usual and/or pay a higher interest rate on the mortgage loan.
We would also suggest contacting a bad credit mortgage broker who can help you to get a loan with an unsatisfied CCJ.
What should I do if I want to apply for a mortgage with an unsatisfied CCJ?
If you are looking to get a mortgage with an unsatisfied CCJ, then it is important that you make sure your credit score is as high as possible. This can help to increase the chances of being accepted for a mortgage.
You should also ensure that all your finances are current and that you have evidence of being able to keep up your mortgage repayments.
Finally, it may be worth talking to a specialist broker with access to many lenders.
Getting a mortgage with unsatisfied CCJ in the UK
Once again, it is worth repeating that a CCJ adversely affects your credit rating and, therefore, reduces the size of the pool of potential mortgage lenders to whom you might want to apply.
Some lenders might insist that the CCJ has been satisfied for at least 12 months before you can apply for a mortgage; other lenders may be content so long as the CCJ has been met.
But there are some – admittedly fewer – lenders who are prepared to consider a mortgage application even if you have an unsatisfied CCJ. Although the pool of potential lenders is smaller, the conditions are likely to be tougher – a lower loan-to-value (LTV) ratio might be offered (so you’ll need a sizeable deposit) and you may need to pay a higher rate of interest. The following factors might also improve your chances of success:
- when was the CCJ issued? – essentially, the longer ago, the better, with most lenders likely to insist that your CCJ was registered at least two years ago;
- deposit – as with any mortgage application, you stand a greater chance of success the more significant the deposit you can put down (the lower the LTV you are seeking), and if you are applying for a mortgage with unsatisfied CCJ you need all the help you can get, so need the biggest deposit you can muster;
- the number of CCJs – one CCJ makes life difficult in securing a mortgage, two or more, especially if one or more remain unsatisfied, is likely to make the situation impossible. Even when CCJs have been satisfied, most lenders will be looking for no more than two outstanding CCJs as a maximum;
- the CCJ amount – lenders, will also consider the size of the debt addressed by the CCJ. If it was for a significant sum, then you may need to be prepared for a lower LTV to be offered or a higher rate of interest.
Although it is likely to prove more challenging to get a mortgage with an unsatisfied CCJ, it is by no means impossible. The pool of potential lenders is significantly smaller, and your success may be affected by the age of the debt, the size of the deposit you have (and the LTV you are offered), the number of CCJs on your credit record, and the size of the debt or debts involved.
What are the eligibility criteria for a mortgage with an unsatisfied ccj?
Some of the major eligibility criteria for a mortgage with an unsatisfied CCJ are mentioned as follows:
- A steady income: Specialist Lenders will want to see that you have a steady income that is sufficient to cover your mortgage payments and other debts.
- A large deposit: A larger deposit will make you a more attractive borrower, as it will reduce the amount of risk that the lender is taking.
- An older CCJ: Lenders are more likely to lend to borrowers with older CCJs, as it shows that you have been able to manage your finances responsibly in the past.
- A manageable CCJ amount: Lenders will want to see that the CCJ is for a manageable amount of money.
- A good credit score: Your credit report will also be taken into account when lenders are considering your application.
It is important to note that not all lenders will consider applications from borrowers with unsatisfied CCJs. If you have an unsatisfied CCJ, you may need to shop around and compare quotes from different lenders in order to find one that is willing to lend to you.
Which mortgage lenders in the UK accept such mortgage applications?
Although a County Court Judgment (CCJ) is a serious credit issue, there are still many lenders who will consider lending to people with a CCJ.
Here are some examples of lenders who may consider lending to people with a CCJ:
- Earl Shilton Building Society: This lender will consider applicants with CCJs that have been registered between 3 and 12 months ago, but the amount of the CCJ must be £500 or less.
- West Brom: This lender will consider lending to applicants with a CCJ, but if it was registered less than 12 months ago, the amount of the CCJ must be £500 or less. A thorough credit checkA check of a borrower's credit history, which is used by mor... will be carried out and an underwriter will carry out an assessment.
- Leeds Building Society: This lender is also sometimes willing to lend to people with a CCJ, but they will only consider applicants with a maximum of one judgment or default satisfied within the last three years. CCJs satisfied over three years ago must not exceed £20,000.
It is important to note that the information above is accurate as of May 2023.
However, mortgage lenders are constantly updating their eligibility criteria, so it is important to check with each lender individually to see if they will consider your application.
Can I get a mortgage with bad credit issues in the UK?
Yes, it is possible to get a mortgage with bad credit reports in the UK. The pool of potential lenders may be smaller than normal, and the size of your deposit can also have an impact on your success. Lenders will typically look at a number of factors when assessing an application, such as your income and employment status, the age of any county court judgement or defaultsMissed payments on credit accounts, which can affect a borro... on your credit record.
If you are interested in getting a mortgage with a County Court Judgment in the UK, you need to contact brokers with access to specialist mortgage lenders.
Getting a mortgage with ccj is difficult, but not impossible. The key is to shop around and compare quotes from different lenders to find a lender who is willing to lend to you. Be sure to check the eligibility criteria of each lender carefully before applying, as this will give you a good indication of how likely your application is to be successful.
If you are a first-time buyer, there might be some government schemes available to you, such as the Help to Buy scheme, which could help you access a mortgage with a CCJ. It is worth researching these options and speaking to a qualified financial advisor before making any decisions.
Can you get a mortgage with an unsatisfied ccj?
Yes, it is possible to get a mortgage with an unsatisfied CCJ. However, the pool of potential lenders may be smaller than normal, and many will require a larger deposit than usual. Additionally, lenders will typically assess your income , credit card statements, employment status, as well as any county court judgements or defaults on your credit record, when deciding whether to lend to you.
Which is the best credit reference agency?
There are three main credit reference agencies in the UK: Experian, Equifax and TransUnion. All three will provide you with a copy of your credit report for a small fee. When researching lenders, it is important to check each agency’s website for the latest information on eligibility criteria. It is also worth noting that they may differ from one lender to another, so it is best to contact a broker to help you with your application process.
Can I get a mortgage if I have a late payments in my previous contract?
It is possible to get a mortgage with late payments in your past contract. In some circumstances, lenders may overlook these, provided that you can demonstrate that the payment was made before the due date and was a one-off occurrence. However, it is important to understand that lenders are likely to view this negatively, which could affect your approval chances.
Can I get a mortgage with bad credit history?
Yes, it is possible to get a mortgage with poor credit history, but you may need to contact a bad credit mortgage lenders who will consider your application. Main stream Lenders will typically look at a number of factors when assessing an application, such as your income and employment status, electoral roll, the age of any county court judgement or defaults on your credit record and other individual circumstances.