Getting a Mortgage with a CCJ
Struggling to secure a mortgage with a County Court Judgement (CCJ) or other blemishes on your credit history? You're not alone, and while it can feel like an uphill battle, the good news is getting a mortgage with bad credit is possible.
However, it's important to understand that your choices might be fewer, and the interest rates are likely to be less competitive than for those with a clean credit history.
Can you get a mortgage with bad credit, including a CCJ?
A County Court Judgement (CCJ) appears on your credit report and is an indicator to a mortgage lender that the borrower is high risk. It can affect a joint mortgage application, even if one of the applicants has a clear credit history.
You'll give yourself the best chance by enlisting the help of an independent mortgage broker with access to the whole of the market to steer you towards the most appropriate mortgage product and specialist lender for your needs.
It's worth noting that mainstream lenders like Natwest have strict criteria. They state: "It's unlikely that we'll be able to lend to you if you've ever been declared bankrupt, have had court judgements against you, had your property seized, defaulted on a mortgage, or had to organise a repayment plan with your creditors."
If you are successful in your mortgage application with a specialist lender:
- You'll have higher than average mortgage repayment interest rates, typically by 5% or more. As of March 2025, the average for a five-year fixed-rate mortgage is 4.74%, so the interest repayments for a CCJ mortgage might be over 5%.
- You may have to source a higher deposit, perhaps a minimum of 20%.
- You face early repayment charges (ERC) which last for a longer period (e.g. 5 years rather than 2 before you can switch lenders without paying a large fee).
- There are likely severe penalties for missing any mortgage repayments. Your mortgage agreement might have clauses allowing for a huge interest rate increase in case of payment defaults, or the lender might initiate repossession proceedings more quickly than they would for a borrower with a clean credit history.
Book a FREE(i) consultation with one of our independent brokers.
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What should you do when seeking a mortgage with a CCJ?
You should always start by securing your credit report from each of the 3 main providers in the UK: TransUnion, Equifax, or Experian.
Your credit report will reveal your current credit score, which any prospective lender for a mortgage with a CCJ will review closely. The lower your score, the more challenges you may encounter in your application.
This report will also detail any negative marks on your credit history, such as CCJs, defaults, debt management agreements, and Individual Voluntary Agreements (IVAs), if applicable.
When reviewing your credit report and the CCJ register, note the details of any County Court Judgements. As part of this initial research, if you believe there were errors in how the County Court Judgement was issued or you have grounds for a dispute, consider seeking advice on overturning it.
Remember that the timing of these events is also a significant factor. In credit matters, it's often said that "time is the greatest healer", meaning older issues typically have less impact, and most issues on a credit file last for around 6 years>.
It's also essential to carefully examine your credit report for any inaccuracies, such as outdated addresses or incorrect links to previous partners or addresses with bad debts.
Rectifying these issues as soon as possible is highly recommended. Dealing with your own past credit issues is challenging enough without being unnecessarily burdened by someone else's financial history.
If you want to specifically check for CCJ information registered against you, you can also search the CCJ register online. Please note that a search typically costs between £6 and £10.
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Bad credit mortgages: which debts have the biggest impact?
In order of impact, they are the following:
Repossessions and Bankruptcy
These indicate a severe inability to repay debts, often resulting in significant financial loss and long-term credit damage.County Court Judgements (CCJs)
Since this is a legal order to repay debts, it shows a failure to meet financial obligations and often leads to a lower credit score.Individual Voluntary Agreements (IVAs) and debt management agreements
Formal or informal arrangements to repay debts at a reduced rate could suggest a history of significant debt issues.Defaults
Failure to make timely payments on credit agreements could mean lenders see you as a potential risk.
A County Court Judgement (CCJ) ends up on your credit report if you fail to repay the money you owe, and the person or company you owe takes you to court to get the debt back.
One common way a CCJ is issued is if you ignore a formal notice (a summons) to appear in court regarding the claim against you. If you don't show up or respond, the court will likely issue a CCJ against you without hearing your side of the story.
Even if you do go to court, a judge will listen to both you and the person or company claiming the debt, and then decide whether or not to issue a CCJ against you.
If you agree that you owe the money, you have the option to ask the court to set up a repayment plan where you pay back the debt in smaller amounts that fit your budget.
It's important to know that CCJs are recorded on a public register called the Register of Judgments, Orders and Fines for six years.
If the CCJ is for a larger sum, specifically more than £5,000, it will also be on the register for six years, but it will additionally be advertised in your local newspaper.
Having a CCJ on your record can make it significantly harder to get credit in the future, and as we've been discussing, it can also impact your ability to get a mortgage.
Repossessions and bankruptcy are often considered the most significant hurdles when applying for bad credit mortgages, as they indicate a severe level of past financial difficulty.
In the UK, bankruptcy typically stays on your credit file for around 6 years from the date the order was made. While this can sometimes vary slightly depending on your specific circumstances and the credit reference agency, 6 years is the general timeframe. Similarly, a repossession will usually remain on your credit file for about 6 years from the date it occurred.
A history of repossession can significantly reduce your chances of getting a mortgage. It suggests that you previously couldn't keep up with your mortgage payments, leading to your property being sold, potentially at a loss for the lender.
If your bankruptcy or repossession was within the last year, finding a mortgage will be difficult. However, if it was more than 6 years ago, and you've shown a positive credit history since then, its impact will likely be less severe.
The size or scale of the bankruptcy or repossession also matters. For instance, defaulting on multiple properties would be viewed more seriously than a single instance.
Lenders might be hesitant if you previously defaulted with a company within their group (like the Lloyd's Banking Group, which includes Lloyd's, Halifax, and Birmingham Midshires).
If you still owe money from a previous repossession (sometimes called legacy repayments), it will make getting a new mortgage much harder.
As we've discussed, a County Court Judgement (CCJ) is issued when you haven't repaid the money you owe, and the creditor takes legal action to recover that debt.
How can you improve the situation if you have a CCJ?
If you find yourself with a CCJ on your record, taking proactive steps can make a difference to how future lenders view your application:
- Pay off the CCJ in full: This is the most impactful action you can take. Showing that you've fully repaid the debt demonstrates to lenders that you are serious about resolving your financial obligations. Make sure you get confirmation that the CCJ is marked as 'satisfied'.
- Establish a repayment plan with the creditor: If you can't pay the full amount immediately, agreeing to and consistently adhering to a repayment plan shows lenders that you are committed to paying off the debt, even if it takes time. Ensure the plan is formally documented.
- Challenge the CCJ if you believe it was issued incorrectly: If you have reason to believe the CCJ was issued in error, you have the right to challenge it through the courts. If your challenge is successful, the CCJ will be removed from your credit report.
It's important to be realistic – even if you take these steps, securing a mortgage with a recent CCJ can still be challenging. However, there are specialist mortgage lenders who understand that past credit issues don't always define a person's current ability to repay.
These lenders may be willing to offer mortgages to individuals with less-than-perfect credit histories, although the terms might not be as competitive as those available to borrowers with a clean credit record.
If you've entered into an Individual Voluntary Agreement (IVA) or a debt management agreement, it's important to understand how these might affect your chances of getting a mortgage.
An IVA is a formal arrangement made with your creditors to repay your debts at a more manageable rate over a set period, typically five to six years. This is a legally binding agreement.
A debt management agreement, on the other hand, is an informal arrangement between you and your creditors, usually facilitated by a debt management company, to repay your debts at an agreed affordable rate over time.
Both IVAs and debt management agreements can present challenges when applying for a mortgage, as they indicate to lenders that you've previously experienced difficulties in managing your debts.
However, it's not impossible to get a mortgage with an IVA or a debt management agreement. Some specialist lenders are more willing to consider applicants in this situation, particularly if the agreement has been in place for a significant period and you've maintained a consistent and positive repayment history.
The total amount of debt involved in the IVA or debt management agreement will also be a factor in a lender's decision, as will the reasons why you initially entered into the agreement.
If you currently have an IVA or are part of a debt management agreement and are looking for a mortgage, it's highly recommended that you speak with a mortgage broker who specialises in bad credit mortgages and has experience with debt management mortgages. They will be best placed to advise you on your options and identify lenders who may be suitable for your circumstances.
A default happens when you miss payments on a credit agreement, such as a credit card, personal loan, or even a previous mortgage.
It's important to be aware that defaults can remain on your credit file for up to six years from the date of the default, regardless of whether you eventually pay off the outstanding debt.
The more recent the default and the more significant the amount involved, the greater the negative impact it will have on your chances of getting a mortgage.
Lenders will also want to understand the reason behind the default. Having a history of multiple defaults will likely be viewed as a significant red flag, suggesting a pattern of difficulty in managing credit.
However, it's not all bad news. Some mortgage lenders are willing to consider applicants with defaults on their credit file, particularly if the default was for a relatively small amount or occurred a long time ago. These lenders may have more flexible criteria than mainstream banks.
Why use a Mortgage Broker if you've got bad credit?
If you've got bad credit, your chances of securing a mortgage from mainstream high street lenders become much lower.
This often means you'll need to consider applying to specialist mortgage lenders who are more experienced in helping individuals with bad credit. While this narrows your options, working with an independent mortgage broker can significantly increase your likelihood of success.
They have the expertise of which specialist lenders are most likely to consider your application and which mortgage products might be best for your circumstances.
Crucially, an experienced broker can also advise you against making applications to specialist lenders where your chances of being approved are slim. This is incredibly valuable because repeated application rejections can negatively impact your credit score and history further.
Therefore, having an independent mortgage broker guide you through this process can save you time, potential disappointment, and further damage to your creditworthiness.
Our brokers will present the best options available to you, for any type of mortgage, including:
- First-time buyers, home movers and buy-to-lets;
- Employed; self-employed or director mortages;
- Mortgages for non-UK residents or non-UK citizens;
- Bridging loans;
- Bad credit mortgages;
- Guarantor mortgages;
- Joint borrower, sole proprietor mortgages; and
- Absolute, Possessory, Good, or Qualified Title.
Golden Rules for Bad Credit Mortgages
If you have blemishes on your credit report, such as a CCJ or defaults, there are some key principles to keep in mind when you're considering applying for a mortgage:
- Be honest with your mortgage broker and lender: Transparency is crucial. Disclosing your full credit history upfront will help your broker find the most suitable options and build trust with the lender.
- Be prepared for higher interest rates: Lenders taking on a higher risk will typically charge a higher interest rate compared to borrowers with a clean credit history.
- Be prepared for a larger deposit: You may need to save a larger deposit, potentially 20% of the property's value or more, as lenders may require a greater financial stake from borrowers with bad credit.
- Be prepared for a potentially longer early repayment charge (ERC) period: Mortgages for those with bad credit might come with longer periods where you'll face a penalty for paying off the mortgage early or switching to a different lender.
- Understand potential penalties for missed payments: It's vital to ensure you can comfortably afford the repayments, as mortgages for bad credit applicants may have stricter penalties for missed payments.
- Actively work to improve your credit score: Before and while you're looking for a mortgage, take steps to improve your credit score. This could include paying bills on time, reducing outstanding debts, and ensuring your credit report is accurate.
Next steps to take
If you have a history of bad credit and you're serious about applying for a mortgage, here are the crucial next steps you should take:
- Speak to an independent mortgage broker specialising in bad credit mortgages: Their expertise is invaluable in finding lenders who are more likely to approve your application.
- Obtain your credit report from all three main UK providers and carefully check for any inaccuracies: Ensure your credit history is as accurate as possible. If you find any errors, take immediate steps to get them corrected.
- Actively work to improve your credit score: Take concrete steps to boost your creditworthiness. This includes making all bill payments on time, reducing your outstanding debts (especially credit card balances), and avoiding applying for new credit unnecessarily.
- Start saving diligently for a deposit: A larger deposit can significantly improve your chances of approval and may also lead to better interest rates, even with a less-than-perfect credit history.
Important Note: Please remember that we are not authorised to provide financial advice, and the information contained in this article is for general guidance only. It should not be taken as a substitute for professional advice. Always consult a qualified financial advisor before making any financial decisions related to mortgages or your circumstances.
Book a FREE* consultation with our independent mortgage broker.
- Access to the whole market.
- Not tied down to selling any particular lender's products.
- Determined to get you the best deal possible.
- 100% impartial advice.
- No need for face-to-face meeting.
Andrew started his career in 2000 working within conveyancing solicitor firms and grew hands-on knowledge of a wide variety of conveyancing challenges and solutions. After helping in excess of 50,000 clients in his career, he uses all this experience within his article writing for SAM, mainstream media and his self published book How to Buy a House Without Killing Anyone.
Caragh is an excellent writer and copy editor of books, news articles and editorials. She has written extensively for SAM for a variety of conveyancing, survey, property law and mortgage-related articles.
