Home Movers with a CCJ
- Independent Mortgage Advice from an award-winning broker
- No obligation consultations either face-to-face, online or over the phone
- We'll search thousands of mortgages from the whole of the market so you don't have to
What's On This Page?
Get In Touch
Home Movers with a CCJ
Lewis Shaw explains how the mortgage process works if you’re a home mover with a County Court Judgement (CCJ).
Can I get a mortgage as a home mover with a CCJ? Do many lenders offer mortgages to home movers with CCJs?
Yes, you can get a mortgage with a CCJ if you’re moving home, although it depends on when that CCJ was registered and how much it was for.
Whether it’s been repaid and what it was for are also important, so there are a few things to consider. But if you’re moving home, there’s a good chance that you have a decent amount of equity.
That equity is effectively the deposit for the new property. So, if you’re moving home and you have a CCJ, don’t panic. Let us assess your circumstances because there are more options than you think.
What deposit will I need? How much can I borrow with a CCJ?
If you’re moving home, your deposit will be the sale price of your home minus your current mortgage balance, whatever that may be. That’s your equity, and we use that as the deposit.
The bigger that is, the better. Ideally, it would be more than 10% of the new property price. With how much you can borrow, you’ve generally got access to the same borrowing figures as anyone else, even with a CCJ.
The trade-off here is that the interest rate may be higher than on a mortgage from the high street. Every lender has their own affordability calculation that looks at your income and outgoings, the household makeup and how long the mortgage term will be. All those factors will play into how much you can borrow.
The CCJ is just one aspect of that. Indeed, you shouldn’t let it weigh too heavily on your shoulders.
Can I still get an Agreement in Principle if I have a CCJ?
You can. An Agreement in Principle is vital if you have had a CCJ – and it’s vital for anyone. When selling your home, you’ll have a buyer, and the people selling your new property will also be buying somewhere else – so you’re in the middle of a chain.
Because of that, it’s essential to nail down precisely what you can borrow and what that will cost. You don’t want to get a buyer for your home or have your offer accepted on a property only to find out that you’re unable to proceed. You’ll be disappointed, but it also has implications for the whole chain.
If you have anything like a CCJ on your credit profile, we would encourage you to get in touch – even before you put your home up for sale. We can review everything to understand exactly how much you can borrow and what that will cost.
Then, you can make a plan and an informed decision on whether moving home is the right option for you at this point.
Can I still port my mortgage if I have a CCJ?
If you have a CCJ and an existing mortgage, your current lender may not allow you to port the mortgage. Each lender’s porting criteria will determine this.
Certainly, if you have a CCJ, many lenders will let you port your mortgage but not take any additional borrowing. Your existing lender and their policy will determine that.
I often see this – people can port their existing balance but can’t get additional borrowing. When people are moving home, they are typically taking a step up the property ladder and need to borrow more. So it can sometimes fall down here – not always, but I have seen it happen.
Speak To an Expert
What if my partner or spouse has a CCJ and I don’t? Can we still get a mortgage?
Yes, in most cases, you should be able to. Again, it depends upon when the CCJ was registered, how much it was for, whether it was repaid, and what it was. The longer ago the CCJ was registered, the less impact it will have.
That said if one person has an absolutely perfect credit profile and the other has a CCJ, the perfect credit profile doesn’t offset the CCJ. It may mean we need to approach a lender that will approve a mortgage where you have an existing CCJ.
Please don’t panic, because it won’t be forever. Even if we have to use a lender with higher interest rates, it’s about getting over a bump in the road to get your new home. We can review it down the line when things have improved.
What happens if I’ve been declined for a mortgage with a CCJ in the past?
If you’ve been declined for a mortgage because of a CCJ in the past, it doesn’t stop you from applying in the future. After six years, CCJs fall off your credit profile and will no longer be an issue. At that point, it doesn’t matter – it’s no longer on your file.
You should still declare it to a broker as something historic – we should always be aware. But being declined for a mortgage in the past doesn’t mean you’ll be rejected again. Lenders understand that things happen.
Life happens, and curve balls come along and catch us all out at some point. None of us are perfect, so don’t panic. If you’ve been declined, there may still be options. The only way to find out is to get in touch.
What if I’m self-employed or a contractor with a CCJ? Can I still get a mortgage to move home?
There are slight differences, but that comes down to the self-employment or contracting element because the CCJ is just one part of this.
Some specific lenders are particularly good for people with CCJs or previous CCJs, and they also will approve self-employed or contractors. It’s more about evidencing your income correctly than worrying about the CCJ.
For someone who is self-employed or a contractor with a CCJ, there are often many options for getting a mortgage. It does depend on how long you’ve been self-employed or contracting for. If it’s more than two years, there will be plenty of options to choose from.
If you’ve only been self-employed or contracting for 12 months, we’ll have fewer options. Your work situation generally dictates your options more than the CCJ.
Will I need a larger deposit for a mortgage as a home mover with a CCJ?
With any mortgage, the bigger the deposit, the better – because you’re borrowing less and will pay less back. A larger deposit is always beneficial.
If you have a CCJ that is unsatisfied, from the last 12 to 24 months, and over £1,000, you’re probably going to need a larger deposit. Generally, that means 10% to 15%. If the CCJ is satisfied and a long time ago, we don’t need to go that high.
If you have multiple CCJs for a large amount, you could need a 20% or 25% deposit. There’s no single number to give because it all depends on when that CCJ was registered and its size. It could be a £250 parking ticket six months ago or £5,000 on a credit card five years ago.
It comes down to your individual circumstances. You can only know by talking to someone, getting the information, and assessing it with bespoke advice.
What documents will I need to have ready if I have a CCJ?
Broadly speaking, you’ll need the same documents: proof of ID, proof of address, and proof of income. If you’re self-employed or a contractor, that may be payslips or tax documents. We also need bank statements to evidence your income and spending, along with a credit report.
The credit report is vital because we need to see exactly what that CCJ is, how much it was for, when it was registered, and whether it’s been repaid. Then, we will understand which lender to approach.
It’s very much a ‘measure twice, cut once’ scenario. We need to get into detail about the CCJ so that when we apply for that mortgage, we’ll have everything we could possibly need.
How long does the mortgage application process take for a home mover with a CCJ? Is it longer?
It’s very similar with and without a CCJ. The timeframe is dependent on how busy that particular lender is when the application is made.
Certain lenders may take longer if they are more specialist or more niche. They may have fewer applications but operate a more manual process to understand the scenario.
Once you’ve had an offer accepted on a property, we apply for a mortgage. The valuation and underwriting are carried out, and you should then get a mortgage offer. Ideally, that will take around two weeks, but it can be shorter or longer.
How can a mortgage broker help me get a home mover mortgage with a CCJ?
When people see a CCJ on their credit profile, they panic. They imagine everything will fall apart, and they won’t be able to move home. That could have serious implications – you may need to move closer to schools or family or for a new job.
People build this up in their minds, but there are usually far more options than they realise.
If we’re talking about a huge CCJ yesterday or last week, it will be very tricky, but most people aren’t in that situation.
A broker will discuss your circumstances in detail and guide you through the entire advice process so you can proceed with your plans.
We understand the market, the lenders, how they operate, and who will approve you. It’s one thing to see a good interest rate online, but it’s no good if that lender says no.
A broker’s job is to ensure that you get the right advice at the right time.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.
