CCJs and Mortgages: Debunking the 5-Year Myth
Millions of UK consumers are still in the dark about how County Court Judgments (CCJs) affect mortgage applications—and many are unnecessarily putting their home ownership dreams on hold.
According to the 2024 Pepper Money Specialist Lending Study, more than a quarter of people mistakenly believe they must wait at least five years after receiving a CCJ before applying for a mortgage. This widespread misconception could be preventing thousands from stepping onto the property ladder far sooner than they think.
What People Think They Know About CCJs
The study found that while 66% of respondents claim they understand what a CCJ is, that confidence crumbles when the conversation turns to mortgage eligibility.
- 18% believe they must wait more than five years after receiving a CCJ before applying for a mortgage.
- 8% believe the wait is up to five years.
- Only a small percentage understood that it might be possible to apply for a mortgage much sooner, depending on the lender and circumstances.
These figures reveal a serious disconnect between public perception and the realities of specialist lending in today’s market.
CCJs Aren’t the Most Common Credit Issue
Interestingly, CCJs were not the most prevalent form of adverse credit reported in the study. Just 4% of people said they had received a CCJ in the last three years.
Other forms of credit issues were much more common:
- Missed credit payments: 11%
- Defaults from multiple missed payments: 7%
- Unsecured arrears: 7%
- Debt Management Plans: 6%
- Secured arrears (e.g., mortgage arrears): 5%
These numbers point to a broader trend: adverse credit is on the rise across the board. But for many, it doesn’t mean the end of the road for a mortgage.
What’s Driving Adverse Credit?
The reasons people gave for missing payments paint a picture of households under pressure:
- 30% struggled with money management
- 27% experienced a dip in income
- 22% cited increased household expenses
Despite 78% of people saying they monitor their bills monthly, nearly 8.4 million people have experienced some form of adverse credit in the past three years. This is the highest number recorded since Pepper Money began this study five years ago.
The Truth: You Don’t Always Have to Wait 5 Years
According to a Pepper Money spokesperson, these misunderstandings are having real-world consequences:
“There remain some significant misconceptions about the impact that adverse credit can have on a mortgage application, with more than a quarter of people believing they would need to wait at least five years after a CCJ before applying for a mortgage.”
The reality? Many lenders—especially specialist ones—consider applicants with CCJs far sooner than that. In some cases, you could be eligible just a few months after the CCJ is registered, particularly if you’ve resolved the debt or taken steps to rebuild your credit.
This is especially true for applicants with stable incomes, a strong deposit, and no recent missed payments.
What This Means for Mortgage Brokers
For brokers and financial advisers, the data represents a huge opportunity.
“This presents a big opportunity for brokers to work with existing customers and new customers to challenge the misconceptions and help more people to achieve their goals,” the Pepper spokesperson said.
Brokers who can educate clients, dispel myths, and connect them to specialist lenders stand to make a significant impact—both for their business and for families who may otherwise give up on their home ownership dreams.
If You Have a CCJ, Here’s What You Need to Know
- Check your credit report – Make sure the CCJ is accurate and up to date.
- See if it’s been satisfied – If you’ve paid the debt, you can apply to have it marked as “satisfied,” which can improve your chances with lenders.
- You can still get a mortgage – Depending on the lender, the size and age of the CCJ, and your financial situation, you might qualify within months.
- Use a broker familiar with adverse credit cases – They’ll know which lenders are most likely to approve your application and can help you present the strongest case possible.
- Don’t assume you’re disqualified – Even if you’ve had recent credit problems, options exist.
Final Thoughts: Rebuilding Doesn’t Mean Waiting Forever
The rise in CCJs and other credit issues reflects a broader financial strain across UK households—but it doesn’t mean your financial future is frozen. The most damaging part of a CCJ might not be the judgment itself, but the myths that follow it.
The belief that you must wait five years or more to apply for a mortgage is outdated and, in many cases, flat-out wrong.
If you’re one of the millions with adverse credit—or a CCJ on your record—don’t self-reject. You might be eligible for a mortgage far sooner than you think.
Need help with a CCJ?
Parachute Law specialises in removing CCJs—even after they’ve been paid.
Call us: 0207 183 4547
Or email: thelegalteam@parachutelaw.co.uk
Contact us today
Related articles:
How to Remove a CCJ from Your Credit File
