County Court Judgement (CCJ)

In today’s financial landscape, County Court Judgments (CCJs) are becoming increasingly common, and navigating the complexities surrounding them can be quite daunting. If you find yourself wondering what a CCJ is, how it can impact your financial future, and what steps you can take to address it, then this comprehensive guide is here to lend a helping hand.

What is a CCJ?

A CCJ is a legal order issued by a county court against an individual who fails to repay a debt. It’s like a red flag, indicating that the court has ruled you owe the money, and you’ve fallen behind on your payments.

How Do You Get a CCJ?

CCJs don’t just pop out of thin air; they come knocking when a creditor takes legal action against you for outstanding debts. It starts with a court claim served to your doorstep, and you must respond within the specified timeframe to avoid getting a CCJ and it being added to your credit file.

How Do You Get a CCJ?

How Long Do CCJ’s Last?

Once a CCJ has been issued against you, it leaves a lasting impression on your credit report. The judgement shows on your credit report for 6 years from the date it was registered. It is very likely to make your chances of obtaining finance more difficult.

Impact on Mortgage Applications

When it comes to applying for a mortgage, a CCJ can make the application process more difficult. Many lenders will accept applications from customers with them, by they are very strict criteria. Some may even dismiss you out of hand.

How do lenders view CCJ’s?

Lenders see CCJs as warning signs of financial mismanagement. They view it as an indication that you’ve struggled to handle your debts responsibly in the past. Naturally, they’re hesitant to lend to someone who’s had difficulties repaying debts before.

Written in August 2023 by:

Sam Chester

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CCJ’s and Higher Interest Rates

If you do manage to find a lender willing to consider your application with a CCJ, you are likely to be charged higher interest rates. Lenders view CCJs as risky business, and they’re likely to charge more to compensate for the added risk.

Why Satisfying Your CCJ Matters

Satisfying your CCJ matters because it affects your creditworthiness. Repaying it in full within one month can remove it from your credit file, boosting your credit score. Even if it stays on your report, marking it as “satisfied” shows responsible financial behaviour. This improves chances of obtaining credit in the future and strengthens your financial standing.

After 6 years, an unsatisfied CCJ will be automatically removed from your credit file. However, until it reaches the 6-year mark, it will continue to negatively impact your creditworthiness and ability to obtain credit. It’s crucial to satisfy the CCJ before this time to improve your financial standing and avoid long-term repercussions on your credit history.

How to Repay a CCJ

Repaying a CCJ can be done in two ways:

Within One Month:

If you manage to pay the debt in full within one month of the judgment being issued, the CCJ will be wiped off your credit record altogether, leaving no trace of its existence.

After One Month:

If you take longer than a month to pay off the debt, the CCJ will be marked as “satisfied” on your credit report, which indicates that you’ve cleared the outstanding amount.

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Attention Please!!!

The content within this article is as accurate as the date it was written. To ensure the most up to date information, you should consult with one of the experts that we work with as every lender and their polices are different and can be changed or amended without notice.

This website is for information only and does not constitute financial advice. Our mortgage advisers are all fully qualified to provide mortgage advice in accordance with the Financial Conduct Authority (FCA) regulations. We only exclusively operate with businesses that are authorised and regulated by the FCA. All advice offered will be unique to your individual circumstances.

Some Buy to Let mortgages are not regulated by the FCA. You should carefully consider securing other debts against your home. If you do not keep up your mortgage repayments, your home may be repossessed. Equity released from your home will also be secured against it.