CCJs or County Court Judgements are court orders directing someone to pay an outstanding debt – for example if you go into default. Alike to defaults a CCJ stays on your credit report for 6 years, after which they are removed even if you have not paid the debt off. However, CCJs are also available on a public database: The Register of Judgement Orders and Fines.
If, within a month, you pay back the full amount it may be removed from both your credit report and the public database following an application to the court with proof of payment. If you pay back the outstanding amount after a month the CCJ will not be removed. Instead it will be marked as ‘satisfied’ due to it having been paid back.
If you do not pay the CCJ back at all, your lender could resort to sending bailiffs to claim assets and it will stay on your report for 6 years.
If you have a CCJ, it is still possible to get a mortgage but there are a few factors that a lender will have to take into consideration before accepting an application.
Can I get a mortgage with unsatisifed or satisfied CCJs ?
The most important thing lenders will consider is the date of the CCJ. Lenders tend to ignore CCJs from 3 years ago or more, so as long as that is the case then you may be able to get as much as a 95% mortgage. If your CCJ is 12 months old or over then lenders will only really be willing to provide you with a maximum of a 75% mortgage – please note this is not guaranteed as all lenders will have different regulations.
Another factor lenders will take into consideration is the size of the CCJ. If over around 3 years old then any size CCJ can be considered for a mortgage. If it is within 2 years there will usually be a limit of a £2500 CCJ if borrowing upwards of 80%. CCJs within the last year would have a maximum of £1000 – some CCJs will consider larger ones but if they were to accept a larger deposit (25-35%) would be required. Therefore, the size of your deposit will also play a big part in whether or not you can apply with a CCJ.
The number of CCJs you have will also play a part in the decision a lender makes. Generally, the limit within the last 2 years will be 2 CCJs, and there are no restrictions when over 2 years old. Lenders potentially could consider an applicant with more if their deposit is larger (25-35%).
Whether or not you have any other credit issue or a bad credit history can also impact the lenders decision.