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.

Which mortgage lenders accept bad credit history?

26 Jul

Written By Christopher Smith

Specialist (adverse credit) lenders are the ones that accept bad credit history, including CCJs, defaults, missed payments, IVAs and discharged bankruptcy. High street banks usually decline adverse credit automatically, but a separate tier of specialist lenders is set up specifically to consider it.

These lenders are not household names, and many only accept applications through brokers rather than directly from the public. That is why people with bad credit often assume no one will lend to them, when in reality they are looking in the wrong place.

Can you still get a mortgage with a poor credit history?

Often, yes. A poor credit history changes which lenders will consider you and on what terms, rather than ruling a mortgage out altogether. Specialist lenders weigh up how recent your issues are, whether they are satisfied, your deposit and your income.

The cleaner the rest of your file and the larger your deposit, the more lenders will look at you. Even serious adverse credit is frequently workable with the right specialist lender.

What is the easiest mortgage to get with bad credit?

The easiest cases to place are those where the credit issue is older, satisfied, and supported by a reasonable deposit. The further in the past the problem, and the more deposit you can put down, the wider your choice of lenders.

There is no single "easy" product, though. It comes down to matching your particular circumstances to the lender most comfortable with them, which is the job a specialist broker does.

Can I get a mortgage with a credit score of 550?

Possibly, because specialist lenders look beyond the score to what is actually behind it. A 550 score caused by a thin or young credit file is viewed very differently from one driven by recent defaults or a CCJ.

Lenders do not all use the same scoring either, so the same number can mean different things to different lenders. The detail of your file matters far more than the headline figure.

Will high street lenders accept bad credit?

Generally, no, at least not recent or serious adverse credit. High street banks rely on automated credit scoring that tends to decline anything outside a narrow range, regardless of the story behind it.

There is some nuance: very old, minor, or fully satisfied issues may sometimes pass a high street lender's checks, especially with a strong deposit and income. But for most adverse credit, a specialist lender is the realistic route.

How do I improve my chances of being accepted?

Several practical steps help. Register on the electoral roll, keep current accounts and bills in good order, avoid new credit applications in the run-up, and satisfy outstanding defaults or CCJs where doing so helps. Building a larger deposit also widens your options significantly.

Timing matters too: sometimes waiting a few months for an issue to age, or paying one down first, makes a real difference. A broker can tell you whether to apply now or take a short, deliberate run-up first.

The bottom line

The lenders that accept bad credit history are specialist lenders, most reached through a broker rather than directly. How recent your issues are, whether they are satisfied, your deposit and your income all shape the outcome, and it is often possible even when the high street has said no.

Have a free, no-obligation chat with Chris Smith Mortgages on 07359 911696. We'll tell you straight which lenders are likely to consider you.

Christopher Smith