Default vs CCJ: What’s the Difference — and Can You Still Get a Mortgage?
If you’ve fallen behind on payments in the past, you might see a default or a CCJ (County Court Judgment) on your credit file. Both can affect your chances of getting a mortgage, but they’re not the same thing — and with the right lender, you may still qualify for a home loan.
This guide explains default vs CCJ, how each affects mortgage approval, and what practical steps you can take to improve your chances.
Default vs CCJ explained:
A default happens when you’ve missed several payments (usually 3–6 months) and your lender closes the account because they believe you won’t catch up.
Example: You stop paying a credit card or phone bill, receive warning letters, and the lender eventually records a default on your credit file.
A CCJ (County Court Judgment) is more serious. It means the creditor has taken legal action because the debt wasn’t repaid, and a court has formally ordered you to pay.
Example: You ignore or dispute a debt, and the company takes you to court. If you don’t respond or lose the case, a CCJ is issued against you.
In short:
Default = lender closed the account due to missed payments.
CCJ = court judgment ordering you to repay a debt.
Both remain on your credit file for six years, even after they’re paid.
How lenders assess risk for each:
Mortgage lenders don’t automatically reject applicants with defaults or CCJs — but they do look closely at the details and timing.
Key factors include:
How long ago it happened: Most lenders ignore defaults or CCJs older than three years, especially if they’re settled.
Whether the debt is settled: A satisfied default or CCJ is viewed far more positively than an unpaid one.
The amount owed: Small communication defaults (e.g. £100 phone bill) carry less weight than large unsecured loans.
Your current conduct: Recent missed payments or overdrafts can signal ongoing risk even if the old issues are resolved.
Typical lender view:
Mainstream banks (like Halifax, Nationwide, Santander) prefer clean credit or very old, satisfied defaults.
Specialist lenders (like Precise, Pepper Money, Together) will consider recent or multiple defaults and CCJs, often at slightly higher rates or deposits.
Realistic mortgage routes with defaults or CCJs:
If your credit file shows defaults or CCJs, don’t panic — there are clear routes to homeownership.
1. Mainstream lenders (strict)
Usually requires at least 3 years since the last default or CCJ.
All debts must be settled.
Deposit of 10–15% minimum.
Competitive rates are available if the rest of your profile is strong.
Defaults and CCJs can still affect your credit score, which may affect getting a mortgage with these lenders.
2. Specialist bad-credit lenders (flexible)
Can accept defaults or CCJs registered within the last 12 months.
May allow unsettled defaults if they’re small or explained.
Deposit typically 15–25%.
More flexible on income type, self-employment, or previous mortgage arrears.
3. Credit repair route (medium-term plan)
If you can’t get approved now, a 6–12 month plan to pay off debts, build savings, and maintain a spotless payment history can reopen mainstream options.
Checklist: what to prepare and how to improve approval odds:
Before applying for a mortgage with defaults or CCJs, get organised. The more evidence you can show of stability, the better.
Documents to prepare:
Proof of income (3 months’ payslips or 2 years’ accounts if self-employed)
Bank statements (showing clean account conduct)
Credit report from all three agencies (Experian, Equifax, TransUnion)
Explanation letters for any defaults or CCJs
Proof of settled debts, if applicable
Ways to improve your odds:
Settle or partially settle any outstanding defaults or CCJs.
Get on the electoral roll at your current address.
Avoid new credit applications for at least 3 months before applying.
Use a specialist mortgage broker experienced in bad-credit cases — they know which lenders will look past old issues.
Next steps
If you’ve got a default or CCJ, you can still get a mortgage — it’s just about finding the right lender and presenting your case clearly.
Visit our [Bad-Credit Mortgage Hub] for more in-depth guides.
Ready to check your options? [Contact us today] and chat to someone to put your mind at ease and discover your next steps
This information is provided as a general guide and should not be relied upon as financial advice. Mortgage approval depends on your individual circumstances and lender criteria. Your home may be repossessed if you do not keep up repayments on your mortgage.
YOUR HOME (OR PROPERTY) MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBTS SECURED ON IT.