Did you know that even if you have a County Court Judgment (CCJ) on your credit file, you may still be able to get a mortgage? While it will be more difficult, there are a number of mortgage lenders in the UK that will consider borrowers with CCJs.

There are many mortgage lenders that accept CCJs, such as Nationwide, Barclays, HSBC, Santander, Lloyds Bank, NatWest, Virgin Money, Yorkshire Building Society, Coventry Building Society, Nationwide Building Society etc.

Please note that these lenders will require additional evidence of your ability to repay the loan and the size of your deposit may have to be larger than normal. It is also possible that these lenders will charge a higher rate of interest, so it is important to shop around for the best rates.

In addition, some lenders may require that you have been discharged from the CCJ before they will consider you for a mortgage. This means that you need to have satisfied the debt, or settled it in full.

You should always check the individual lender’s criteria before submitting an application and make sure that you meet their requirements. It is also important to bear in mind that any application will be subject to a credit check and lenders may consider other factors such as your income and expenditure when assessing your affordability.

Finally, it is also a good idea to seek advice from an independent financial adviser or broker who may be able to help you find the most suitable mortgage deal for your circumstances.


Post Topics

What is a CCJ?

How to get a mortgage with a CCJ?

Which mortgage lenders accept CCJs?

What factors do lenders consider when assessing applications from borrowers with CCJs?

Tips for improving your chances of getting approved for a mortgage with a CCJ

What is the process of getting an application approved from mortgage lenders that accept defaults?

Next Steps

FAQs


Damian Youell

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How We Work

1: We contact you and take down your details, income outgoings, name, address etc.

2: We will research the whole market and email you a detailed quote as well as a list of documents to proceed.

3: You upload the documents and information needed via our channel our online portal.

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What is a CCJ?


CCJ is known as a county court judgement and is a court order that creditors can obtain against those who are unable to repay the money that they owe. A county court judgment is recorded on your credit file and can remain there for a period of up to 6 years, depending on the circumstances. It will affect your ability to obtain credit in the future, such as loans, mortgages or credit cards.

There are only limited mortgage lenders who can offer an individual a mortgage with CCJs, but it is worth researching the market to find out which ones are willing to lend.

How to get a mortgage with a CCJ?

Getting a mortgage with a CCJ is a complicated task, but it is possible to find lenders who are willing to consider borrowers who have had a County Court Judgment in the past.

When applying for a mortgage with a CCJ you will need to provide evidence that you can afford the mortgage payments, such as bank statements and payslips, as well as details of your current financial situation. You should also provide evidence that shows you have been able to pay your bills on time in the past.

It is also important to shop around for the best mortgage deal, as some lenders may offer more competitive rates than others and you should take into consideration any fees that may be charged.

Finally, it is always a good idea to seek independent financial advice when considering taking out a mortgage with a CCJ.

Which mortgage lenders accept CCJs?

Here are some of the mortgage lenders that accept CCJs in the UK:

  • Nationwide
  • Barclays
  • HSBC
  • Santander
  • Lloyds Bank
  • NatWest
  • Virgin Money
  • Yorkshire Building Society
  • Coventry Building Society
  • Nationwide Building Society

It is important to remember that these lenders may each have different criteria when it comes to considering applications with a CCJ, so you should always check the individual lender’s criteria before submitting an application.

What factors do lenders consider when assessing applications from borrowers with CCJs?

When assessing applications from borrowers with County Court Judgments (CCJs), mortgage lenders typically consider several factors to determine the risk associated with lending to an individual. Here are some key factors that lenders may take into account:

  1. CCJ Details: Lenders will examine the details of the CCJ, including the amount owed, the date of the judgment, and whether it has been satisfied (paid off) or remains outstanding. The severity and recency of the CCJ can influence a lender’s decision.
  2. Credit Score: Lenders assess the overall creditworthiness of an applicant, which includes reviewing their credit score. A CCJ can have a negative impact on the credit score, but lenders will consider the broader credit history as well.
  3. Time Since CCJ: Lenders may consider the time that has elapsed since the CCJ was issued. Generally, the longer the period since the CCJ, the better the chances of obtaining a mortgage.
  4. CCJ Amount: The size of the CCJ can also affect the lender’s decision. Smaller CCJs may be viewed more favourably than larger ones, as they may be considered less of a risk.
  5. CCJ Satisfaction: If the CCJ has been satisfied (paid off), it demonstrates a borrower’s commitment to resolving their financial obligations. This can improve the chances of being approved for a mortgage.
  6. Deposit/Equity: The amount of deposit or equity a borrower has can influence a lender’s decision. A larger deposit or equity stake can mitigate the perceived risk associated with a CCJ.
  7. Income and Affordability: Lenders assess an applicant’s income and expenditure to determine their ability to repay the mortgage. A stable income and low debt-to-income ratio can help strengthen the application.
  8. Lender’s Criteria: Each lender has its own specific criteria when assessing applications, including their tolerance for CCJs. Some lenders may have more lenient policies for borrowers with CCJs compared to others.

It’s important to note that different lenders have varying risk appetites, and their criteria can change over time. It’s advisable to seek professional advice from mortgage brokers or consult directly with lenders to understand their specific requirements and assess your eligibility for a mortgage with a CCJ.

Damian Youell

Feel Free To Start WhatsApp Chat With Us...

How We Work

1: We contact you and take down your details, income outgoings, name, address etc.

2: We will research the whole market and email you a detailed quote as well as a list of documents to proceed.

3: You upload the documents and information needed via our channel our online portal.

Feel Free to Contact Us

Tips for improving your chances of getting approved for a mortgage with a CCJ

Here are some tips for improving your chances of getting approved for a mortgage with a County Court Judgment (CCJ):

  1. Understand your credit situation: Review y our credit report and understand the details of the CCJ. Check for any errors or inaccuracies that you can dispute.
  2. Pay off or settle the CCJ: Lenders may view a paid or settled CCJ more favourably than an outstanding one. Consider paying off the judgment or negotiating a settlement with the creditor.
  3. Build a positive credit history: Establish a record of responsible credit behaviour by paying bills on time, reducing debt, and managing other financial obligations effectively. This can help demonstrate your improved financial stability.
  4. Save for a larger down payment: A larger down payment can mitigate the risk in the eyes of lenders and potentially improve your chances of approval. Saving up more money before applying for a mortgage can be beneficial.
  5. Work with a specialist mortgage broker: Seek the assistance of a mortgage broker who specializes in helping individuals with CCJs. They can provide guidance, access a wider range of lenders, and increase your chances of finding a suitable mortgage deal.
  6. Demonstrate stability: Stability in employment, residential address, and financial situation can strengthen your mortgage application. Aim to maintain a steady job and residence for a significant period before applying.
  7. Avoid applying to multiple lenders simultaneously: Making multiple applications within a short period can negatively impact your credit score. Instead, work with a mortgage broker to identify lenders who are more likely to consider your circumstances.
  8. Provide a detailed explanation: Prepare a detailed letter explaining the circumstances surrounding the CCJ, including any mitigating factors or extenuating circumstances. This can help lenders understand your situation better.
  9. Be realistic with your expectations: Understand that obtaining a mortgage with a CCJ may come with higher interest rates or require a larger deposit. Be prepared for these possibilities and explore different options.

Remember that each lender has different criteria and policies regarding CCJs, so it’s essential to research and find the most suitable options for your specific circumstances.

What is the process of getting an application approved from mortgage lenders that accept defaults?

The process of getting an application approved from mortgage lenders that accept defaults can be a bit more complicated than for someone with a clean credit history. However, it is still possible to get approved, and there are a few things you can do to increase your chances of success.

The first step is to find a lender that is willing to consider applications from borrowers with defaults. There are a number of specialist lenders that cater to this market, and they will be more likely to approve your application if you have a good explanation for the defaults and have taken steps to improve your credit history since then.

Once you have found a lender, you will need to gather all of the necessary documentation to support your application. This will typically include your income and employment history, your credit report, and any other relevant financial information.

Once you have submitted your application, the lender will assess your information and make a decision. This process can take a few weeks, so it is important to be patient.

If your application is approved, you will be given a mortgage offer. This document will outline the terms of your mortgage, including the interest rate, the repayment period, and any other fees.

Once you have accepted the mortgage offer, you will need to sign the paperwork and make a deposit. The lender will then release the funds to you, and you can start the process of buying your home.

Here are some tips to increase your chances of getting a mortgage with defaults:

  • Get your credit report and review it for any errors.
  • Dispute any errors with the credit bureaus.
  • Pay down any outstanding debt.
  • Increase your income.
  • Get a co-signer.
  • Choose a lender that specializes in mortgages for borrowers with defaults.

Getting a mortgage with defaults can be a challenge, but it is possible. By following these tips, you can increase your chances of success.

Next Steps

Finding a mortgage lender that accepts defaults or CCJ is always a tricky part of the mortgage industry of the UK. But once when you identified the appropriate lender, you should get the necessary documents ready in order to apply for a mortgage.

It is essential to research and find the most suitable options for your specific circumstances and always remember that each lender has different criteria and policies regarding ccjs.

You must also prepare and provide a detailed explanation of the circumstances surrounding the CCJ, including any mitigating factors or extenuating circumstances. This can help the lender to understand your situation better and make a more informed decision.

Finally, it is important to make sure you are financially prepared for the loan by having a good credit score, a stable income, and a history of timely payments. This will help you secure the best mortgage terms possible and reduce the cost of borrowing.

We would suggest you contact the best team of mortgage brokers and financial advisors to help you find the best mortgage lender that can meet your needs.

FAQs

What is a CCJ?

CCJ is also known as country court judgment and it is issued when an individual or company fails to pay a debt. CCJs are registered on the court registers and they remain visible for six years, even if the debt is paid in full.

What documentation do I need to provide when applying for a mortgage with a CCJ?

When applying for a mortgage application with a CCJ, you will typically need to provide income and employment history, as well as credit files. You may also need to provide an explanation of the circumstances surrounding the CCJ and any mitigating factors or extenuating circumstances that may have affected your ability to pay.

Does having a CCJ affect my chances of getting a mortgage?

It is possible to get a mortgage with CCJ, but it will depend on the lender and your individual circumstances. Some street lenders are likely to look at factors such as income, credit files, and repayment history, as well as any mitigating factors or extenuating circumstances that may have contributed to the County Court Judgement.

Can I get a mortgage with defaults?

Yes, it is possible to get a mortgage with defaults, although the terms and conditions may be different from those of a regular mortgage. You should research the best options for your specific circumstances and make sure you are financially prepared for the loan. You can also contact a bad credit mortgage broker to help you with your mortgage application.

How can I improve my credit ratings?

The best way to improve your credit rating is to pay all bills on time, register for the electoral roll, reduce your credit utilization ratio, dispute any errors on your credit report and avoid applying for too much credit and late payments. It is also important to make sure that you are regularly monitoring your credit score and taking steps to keep it as healthy as possible. Additionally, reducing existing debts can help improve your overall debt-to-income ratio and improve your credit score.

About The Author

mortgage broker damian youell



See some of Damian’s client reviews below

Damian is an experienced mortgage broker, founder of NeedingAdvice.co.uk Ltd and company director. With over a decade working as a mortgage broker he has a strong understanding of hard to place mortgage cases. With hundreds of 5 star client reviews. hundreds of repeat clients his work speaks for himself.

He started NeedingAdvice.co.uk as a one man band with the philosophy of putting clients needs ahead of his own. This ethos of offering excellent customer service has helped the business grow over the years. He gets satisfaction on getting cases pushed through to offer stage where other mortgage broker and companies have failed.

Throughout his time as an adviser he has carved out a niche area of advice helping clients with their business protection requirements too. Having helped hundreds of client with Relevant Life Policies, Shareholder Protection Insurance, Keyperson Policies and other important protection requirements of large to small businesses.

At home he is a family man and likes to spend his time with his four children and wife Lisa. He enjoys going on holidays spending time with friends and going for walks.