If you’re dreaming of a new home, a County Court Judgment (CCJ) can feel like a brick wall. Most high-street lenders see a CCJ as a major red flag, indicating that you’re a high-risk borrower.
But does it mean you’ll never get a mortgage? Not necessarily. Here is the reality of buying a home with a CCJ on your record.
The “Satisfied” Myth
Many people think that if they just pay the debt, the CCJ will vanish. Unfortunately, that’s not how it works.
- If you pay the CCJ after 30 days, it stays on your credit file for 6 years, marked as “Satisfied.”
- While a “Satisfied” CCJ looks slightly better than an “Unsatisfied” one, many lenders will still reject your application or charge you a higher interest rate.
The Power of a “Set Aside”
The only way to completely remove a CCJ from your credit file before the 6-year mark is to have it Set Aside.
When a CCJ is set aside, the court effectively rewinds things. The judgment is cancelled, and the entry is removed from the Register of Judgments, Orders and Fines. To a mortgage lender, it’s like the CCJ never existed.
When can you get a CCJ Set Aside?
You need a good reason, such as:
- You never received the court papers (e.g. they went to an old address).
- You have a strong defence and a reason why you didn’t respond to the proceedings in time.
- The claimant agrees to the set-aside and it isn’t just to avoid the consequences of a CCJ.
Don’t wait for the Rejection
If you know there is a CCJ on your file, don’t wait until you find your dream house to deal with it. The court process can take a weeks or months, so it is best to get the judgment removed before you approach a mortgage broker.
Take Control of Your Credit: Don’t let a past mistake (or a creditor’s error) stop you from moving home. If you have a valid reason to challenge a CCJ, you can do it yourself.
Explore our DIY Set Aside Pack and start your mortgage journey with a clean slate.
