A county court judgment does not usually rule out releasing equity from your home, but raising extra money changes the picture compared with a like-for-like switch. You are asking a lender to increase both the loan and the loan to value at the same time as it sees a CCJ on your file, so some lenders may set a lower maximum LTV for raise-capital applications with adverse credit than they would for a straight rate change.
This page covers raising money for purposes such as improvements or helping family when a CCJ is on your file. If your goal is actually to clear the CCJ itself using the remortgage, using a remortgage to pay off a CCJ covers that directly.
On this page
This page covers
- Credit issue
- County court judgments (CCJs)Usually stays on your credit file for 6 years from the judgment date.
- Reason for remortgaging
- Raising moneyBorrowing more increases your loan to value, which can change the options available.
Read the main guide: Remortgaging to release equity when you have bad credit
In short
- A CCJ does not usually stop you releasing equity, but it can affect the maximum LTV a lender allows.
- Whether the CCJ is satisfied, and how old it is, both tend to matter more than the judgment simply existing.
- Raising money and having a CCJ are assessed together, not as two separate decisions.
- A larger mortgage still has to pass an affordability check on top of any credit assessment.
Your home may be repossessed if you do not keep up repayments on your mortgage. Think carefully before securing other debts against your home. Borrowing over a longer term can mean paying back more in total.
Why does raising money change how a CCJ is viewed?
A CCJ on its own is one factor among several a lender weighs. Add extra borrowing, and the lender is also taking on a higher loan to value, which means less of a buffer if the property ever had to be sold. Some lenders respond to that by setting a lower maximum LTV for raise-capital applications with a CCJ than they would allow for someone simply switching deals without borrowing more.
This is different from a lender simply declining because of the CCJ. It is usually a question of how much can be raised, not whether anything can be raised at all, particularly once the judgment is satisfied or has been on file for a while.
Does an unsatisfied CCJ have to be dealt with first?
Some lenders may ask for an unsatisfied CCJ to be cleared before, or as part of, a raise-capital remortgage, even where the extra money is for something unrelated, such as home improvements. Others will proceed with an unsatisfied CCJ noted, especially if it is small or old, though this varies between lenders.
| Status of the CCJ | What some lenders may look for |
|---|---|
| Unsatisfied, recent | Often the most cautious category; some lenders may want it cleared first |
| Unsatisfied, older | Can be viewed more favourably, though still outstanding |
| Satisfied | Generally weighed alongside the rest of your file rather than as a standalone issue |
| Set aside | Should no longer appear on the register once updated, but check your file |
Illustrative only. Every lender sets its own approach; this is not a list of any specific lender’s criteria.
Where the judgment is unsatisfied and you want to raise money for something else entirely, it can be worth comparing whether to clear the CCJ from your own funds first. Our page on remortgaging with an unsatisfied CCJ sets out that decision in more detail.
How does the size of the CCJ come into it?
A small judgment, such as one relating to a parking charge or a utility bill, is often viewed differently from a larger one. Some lenders may disregard a small, satisfied CCJ when assessing a raise-capital application, though this is not a fixed rule and varies by lender. Our page on small CCJs explains how these tend to be treated.
Having more than one judgment on file, or a CCJ alongside defaults, usually narrows the options further than a single small CCJ would. See remortgaging with a CCJ and defaults if that applies to you.
What else matters once you add extra borrowing?
Raising money increases your mortgage balance and, usually, your loan to value at the same time. With a CCJ already on file, that combination can mean fewer lenders and a higher rate than a like-for-like remortgage would attract.
- Affordability at the higher amount, including a stress test against a higher interest rate.
- Other credit issues, since a CCJ alongside missed payments or defaults is generally viewed more cautiously than a CCJ alone.
- What the money is for, which some lenders ask about specifically for raise-capital applications.
- How recently the CCJ was recorded, since it carries less weight the older it gets.
Getting advice before you apply
A specialist adviser who knows how lenders treat raising money alongside a CCJ can help you understand realistically how much you may raise before a hard credit search. If the CCJ is a source of financial pressure, MoneyHelper, StepChange and National Debtline offer free advice.
What may affect releasing equity when you have a CCJ
| Factor | Why it matters |
|---|---|
| Status of the CCJ | Whether it is satisfied, unsatisfied or set aside tends to matter more than the judgment simply existing. |
| Age of the judgment | Older CCJs, especially satisfied ones, are usually weighed more favourably than recent ones. |
| Size of the CCJ | Some lenders may give less weight to a small, satisfied judgment than a large one. |
| Amount you want to raise | A larger raise-capital request increases both your borrowing and your loan to value. |
| Maximum LTV for raise-capital with your credit profile | Some lenders set this lower than for a like-for-like remortgage. |
| Other credit issues | A CCJ alongside defaults or missed payments is usually viewed more cautiously than a CCJ alone. |
| What the money is for | Some lenders ask about the purpose specifically when a CCJ is also on file. |
| Affordability of the larger mortgage | The new amount still has to pass an affordability check and stress test. |
These are general points, not lender rules. Each lender sets and changes its own criteria.
Information an adviser may ask for
You don’t need all of this to make an enquiry. It helps to know where to find it, because an adviser is likely to ask about most of it.
- The judgment date, amount, court and current status
- How much you want to raise and what it is for
- Your current mortgage balance, deal end date and any early repayment charges
- An estimate of your property’s current value
- Your credit reports from Experian, Equifax and TransUnion
- Proof of income and your main monthly outgoings
- Details of any other credit issues on your file
Frequently asked questions
Can I release equity if I have an unsatisfied CCJ?
It can still be possible, though some lenders may want the CCJ cleared first or as part of the remortgage, particularly if it is recent or large. Others may proceed with it noted. A specialist adviser can tell you which approach different lenders take.
Does a satisfied CCJ still affect how much I can raise?
It can, though usually less than an unsatisfied one. A satisfied CCJ is generally weighed alongside the rest of your credit file rather than treated as a separate condition, but it still stays on file for 6 years from the judgment date.
Should I pay off the CCJ before applying to release equity?
If you can afford to, paying it yourself keeps the debt separate from your mortgage and can simplify the application. If you cannot, and the extra money is needed for something else entirely, an adviser can help you weigh whether to include the CCJ in the same remortgage.
Will having a CCJ limit how much equity I can release?
It can, mainly through a lower maximum LTV some lenders set for raise-capital applications with adverse credit, rather than by ruling out borrowing altogether. See releasing equity with bad credit for how the LTV limit shapes the amount.