How a CCJ Appears on Your Credit File
A county court judgement is registered on your credit file when a creditor takes you to court over an unpaid debt and the court rules against you. The CCJ remains on your file for six years from the date it was issued, regardless of whether you subsequently pay it. However, if you pay the full amount within one calendar month of the judgement date, you can apply to have it removed from the Register of Judgements.
If you pay the CCJ after the one-month window but before the six years are up, it will be marked as 'satisfied' on your file. This is better than an unsatisfied CCJ, but the entry itself remains visible to lenders until the six-year period ends.
How Lenders View CCJs on Remortgage Applications
Most high-street lenders will decline a remortgage application if your credit file shows an active or recent CCJ. However, specialist lenders assess CCJs on a case-by-case basis, considering several factors:
- The amount of the CCJ — smaller judgements (under £500) are generally treated more leniently than larger ones
- Whether it has been satisfied — a paid CCJ is viewed more favourably than an outstanding one
- How recent it is — a CCJ from four years ago carries less weight than one registered six months ago
- Whether there are multiple CCJs — a single historic CCJ is far easier to work with than several recent ones
Some specialist lenders will consider applications with a satisfied CCJ registered more than 12 months ago, provided the borrower has maintained a clean credit record since then and has sufficient equity in the property.
Improving Your Chances of Remortgaging with a CCJ
If you have an unsatisfied CCJ, paying it off before applying for a remortgage should be your first priority. While it will still appear on your file, the 'satisfied' status demonstrates to lenders that you have addressed the debt. Keep proof of payment, as you may need to show this to your broker or lender.
Building up equity in your property also helps. Lenders see lower loan-to-value ratios as lower risk, which can offset the negative impression created by a CCJ. If your home has increased in value since you last mortgaged, you may have more equity than you realise.
Consider a product transfer with your existing lender as well. Since a product transfer does not usually involve a new credit check, your CCJ may not be a barrier. Ask your current lender what deals are available to existing customers.
What Rates to Expect with a CCJ
Interest rates for borrowers with CCJs are higher than mainstream rates, reflecting the additional risk the lender takes on. You might expect to pay anywhere from 1.5% to 5% above the best available rates, depending on the size and status of the CCJ, your LTV, and how recently the judgement was registered.
Arrangement fees from specialist lenders also tend to be higher, sometimes ranging from £1,000 to £2,000 or more. Factor these costs into your comparison to make sure remortgaging genuinely saves you money compared with staying on your current rate.
Important: Your home may be repossessed if you do not keep up repayments on your mortgage. There will be a fee for mortgage advice. The actual rate available will depend on your circumstances. Think carefully before securing other debts against your home.