Mortgage With a CCJ: Can You Still Get Approved & What Lenders Look For

Mortgage With a CCJ: Can You Still Get Approved & What Lenders Look For

Receiving a County Court Judgment (CCJ) can feel like a major setback, especially if you’re planning to apply for a mortgage. Many borrowers assume that a CCJ automatically results in a refusal, but that isn’t always the case. Lenders look at far more than just one adverse marker on a credit file, and a CCJ may still be accepted depending on its age, value and whether it has been settled.

This guide explains your real options when applying for a mortgage with a CCJ, how lenders assess the risk and what you can do to improve your chances. This article provides general information only and does not offer regulated mortgage advice.

Can You Get a Mortgage With a CCJ?

Yes — it is possible to get a mortgage with a CCJ, but the outcome depends on several key factors:

  • How long ago the CCJ was registered
  • Whether the CCJ has been settled
  • The value of the CCJ
  • Whether you have multiple CCJs
  • Your recent financial behaviour
  • Overall affordability and deposit level

Specialist lenders often accept CCJs, and some high-street lenders will consider older or settled ones.

Understanding How CCJs Affect Mortgage Applications

A CCJ signals to lenders that a debt went unpaid and legal action was required. This makes lenders cautious, but not all CCJs are treated equally.

Lenders assess:

  1. Recency – the most important factor
  2. Amount owed – small CCJs are less severe
  3. Settlement status – settled CCJs show responsibility
  4. Associated credit issues – e.g., defaults, missed payments
  5. Bank statement conduct – stability since the CCJ

A well-managed financial profile after the CCJ can significantly improve the outcome.

How Long Does a CCJ Affect Your Mortgage Application?

A CCJ stays on your credit file for six years, whether settled or not.

However, its impact reduces over time:

Less than 12 months old

Most restrictive. Only specialist lenders likely to consider.

1–2 years old

Some lenders may accept, especially if settled.

2–4 years old

Many specialist lenders open up; some high-street lenders may also consider if clean since.

4–6 years old

Often acceptable to both mainstream and specialist lenders, depending on value and conduct.

Do You Need to Settle a CCJ Before Getting a Mortgage?

You do not always need to settle a CCJ to be approved, but settling it usually improves lender choice.

Settled CCJ advantages:

  • Shows responsibility
  • Often required by mainstream lenders
  • May reduce deposit requirements
  • Strengthens manual underwriting cases

Unsettled CCJ outcomes:

  • Specialist lenders may still consider
  • Higher deposit requirements
  • Higher rates in some cases

If you settle a CCJ within one month of the judgment, it can be removed from your credit file entirely.

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Key Lender Criteria for Mortgages With a CCJ

Lenders use several criteria to assess applications involving CCJs.

1. Age and value of the CCJ

Older and lower-value CCJs are far more acceptable.
Typical lender expectations:

  • CCJs under £1,000 often acceptable if older than 2–3 years
  • CCJs over £5,000 may require specialist lenders or larger deposits
  • Multiple CCJs increase risk and reduce options

2. Deposit requirements

The higher the deposit, the more flexible lenders may be.

Typical ranges:

  • 75–85% LTV for recent or unsettled CCJs
  • 90% LTV possible for older, settled CCJs
  • 95% LTV rare but not impossible for historic minor CCJs

More serious credit issues usually require 25%–30% deposits with specialist lenders.

3. Recent bank statement conduct

Lenders also assess:

  • Overdraft usage
  • Returned direct debits
  • Stability of income
  • Evidence of improved budgeting
  • No new missed payments

Clean statements help significantly.

4. Number of CCJs

One CCJ is easier to approve than multiple.
Multiple CCJs may require:

  • Larger deposits
  • Specialist lenders
  • Strong explanations

5. Your explanation for the CCJ

Underwriters often request a clear, factual explanation.

Common accepted circumstances include:

  • Administrative disputes
  • Billing errors
  • Old debts forgotten due to moving address
  • Redundancy or temporary income loss

Strong explanations can help lenders understand context.

High-Street vs Specialist Lenders

High-Street Lenders

May accept:

  • CCJs older than 3–4 years
  • Settled CCJs
  • Low-value CCJs
  • Isolated adverse events

Generally decline recent or multiple CCJs.

Specialist Lenders

Often accept:

  • Recent CCJs
  • Multiple CCJs
  • Unsettled CCJs
  • Higher-value CCJs

These lenders use manual underwriting and look at the full picture, not just the credit score.

Common CCJ Scenarios and Likely Outcomes

Scenario 1: CCJ from five years ago, settled

Often accepted by mainstream lenders.

Scenario 2: CCJ from two years ago, settled

Many specialist lenders available; some high-street options possible.

Scenario 3: Recent CCJ from the last 12 months

Specialist lenders required; higher deposit likely.

Scenario 4: Multiple CCJs under £500 each, 3 years old

Possible with specialist lenders at moderate LTVs.

Scenario 5: Large CCJ above £5,000, settled recently

Specialist lenders may accept with a strong deposit.

How Affordability Is Assessed When You Have a CCJ

Lenders evaluate:

  • Income level
  • Employment stability
  • Existing credit commitments
  • Debt-to-income ratio
  • Bank statement behaviour

A CCJ doesn’t automatically reduce borrowing capacity, but poor affordability may.

How to Improve Your Chances of Getting a Mortgage With a CCJ

(General Information Only)

1. Settle the CCJ if possible

Increases lender choice and improves credit scoring.

2. Maintain perfect payment behaviour for 6–12 months

Lenders place heavy emphasis on recent conduct.

3. Avoid new credit applications

Hard searches can make your profile appear unstable.

4. Reduce credit card balances

Lower utilisation increases score and reduces risk.

5. Save a larger deposit

Every 5% extra deposit increases lender choice.

6. Prepare documentation early

You may be asked for:

  • Bank statements
  • Proof of settlement
  • An explanation of events
  • Employment documents

7. Correct errors on your credit reports

Issues with address links or closed accounts can worsen your risk profile unnecessarily.

Summary

Getting a mortgage with a CCJ is possible, and many applicants successfully secure approval with the right preparation. Lenders focus on:

  • How old the CCJ is
  • Whether it has been settled
  • The amount involved
  • Your recent financial conduct
  • Deposit size
  • Overall affordability

Specialist lenders offer solutions even for recent or multiple CCJs, while older settled CCJs may still be acceptable to mainstream banks.

This article provides general information only. For personalised support, regulated mortgage advice is required.

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Important information: Mortgage Bridge provides information only and acts as a mortgage introducer. We do not provide mortgage advice or make lender recommendations. We can introduce you to an FCA-regulated mortgage adviser who can provide personalised mortgage advice.