No, a default is not a CCJ. A default is added to your credit report by a lender when you miss payments on an account. A County Court Judgment (CCJ) is a court order telling you to repay a debt. They are different — but a default can sometimes lead to a CCJ if the debt isn't resolved. Lenders treat CCJs as more serious, but both can be accepted by specialist mortgage lenders, especially if they're settled or older than 12–24 months.

How long do defaults and CCJs stay on your credit file in the UK?

Defaults and CCJs both stay on your UK credit file for six years from the date they were registered, and then drop off automatically — even if the debt hasn't been paid. A default stays for six years whether it's settled or not, though settled defaults are marked 'satisfied' and viewed more favourably by lenders. A CCJ also stays for six years, but if you pay it in full within one month of the judgment, it can be removed from your credit file completely. After six years, lenders can no longer see them. You don't always need to wait that long to get a mortgage though — many specialist lenders accept CCJs and defaults that are only 12–24 months old, particularly when settled.

Can you get a mortgage with a CCJ or default in the UK?

Yes, you can get a mortgage with a CCJ or default in the UK. High-street lenders usually prefer the CCJ or default to be at least three years old and settled, but specialist bad credit mortgage lenders will often accept ones registered in the last 12 months — sometimes even unsatisfied ones if the amount is small. The key factors lenders look at are how long ago the issue happened, whether it's satisfied, how many you have, the amount owed, and your deposit size. A specialist mortgage broker can match you to the lenders most likely to approve your situation. Call Chris on 07359911696 for a quick, no-pressure chat to find out what's possible.

If I've had a default or CCJ in the past, how much will that affect what I can get approved for?

7 Jun

Written By Christopher Smith

A past default or CCJ affects your mortgage options most when it's recent and unpaid, and far less as it ages and once it's been satisfied. It rarely stops you getting a mortgage outright — instead it shapes which lenders will consider you, how big a deposit you'll need, and the rate you're offered.

The honest answer is that there's no single penalty. Two people with the same CCJ can get very different outcomes depending on when it happened, whether it's paid, their deposit, and their income.

Does it matter how long ago the default or CCJ was?

Yes — this is one of the biggest factors. The more recent the marker, the fewer lenders will consider you and the larger the deposit they'll usually want.

As the issue ages, more lenders open up to you. Many specialist lenders treat anything older than three years much more favourably, and once you pass the point where it's about to drop off your file, your options widen again.

Does a satisfied (paid) default or CCJ look better than an unsatisfied one?

Almost always, yes. A satisfied marker shows a lender you've put the problem right, which reassures them — even though the marker itself stays on your file for the full six years.

An unsatisfied default or CCJ is more limiting, but it's not an automatic no. Some specialist lenders will still consider unpaid markers, particularly at a lower loan-to-value, though paying it off first usually improves your choices.

How much deposit do I need with a default or CCJ?

It depends on how recent and serious the issue is. As a rough guide, mild or older adverse credit can sometimes work with a 10-15% deposit, while more recent or serious markers often need 20-25% or more.

A bigger deposit does two things: it opens up more lenders, and it usually gets you a better rate. If your credit is very recent, building a larger deposit can be one of the most effective ways to improve your options.

Will I pay a higher interest rate?

Usually, yes — at least to begin with. Specialist lenders price in the extra risk, so rates for adverse credit are higher than the cleanest high-street deals, with the premium depending on how recent and serious the issue is.

The good news is this isn't permanent. As your credit improves and the marker ages, you can often remortgage onto a better rate later. To understand how the markers themselves differ, our post on <a href="/blog/default-vs-ccj-whats-the-difference-and-can-you-still-get-a-mortgage">default vs CCJ — what's the difference and can you still get a mortgage</a> breaks it down.

Should I wait until it drops off my file or apply now?

It depends on how close the marker is to dropping off and what you'd gain by waiting. If it falls off in a few months, waiting might noticeably widen your options. If it's got years left to run, waiting could mean missing out on a home or paying more as house prices move.

There's no one-size answer, which is exactly where advice helps. Sometimes applying now with the right specialist lender is the better move; sometimes a short wait, or paying down a marker first, makes a real difference.

The bottom line

A past default or CCJ shapes your mortgage rather than blocking it. Recency, whether it's satisfied, your deposit and your income all pull together to decide what's possible — and with the right lender, it's often possible sooner than people expect.

Have a free, no-obligation chat with Chris Smith Mortgages on 07359 911696. No judgement — just a realistic answer about where you stand.

Christopher Smith