A county court judgment does not rule out remortgaging when you are self-employed, but a lender will usually want to understand both the judgment and how your trading has moved on since. Many self-employed CCJs follow a specific difficult period: an unpaid client invoice, a supplier dispute, or a tax bill that fell due at the wrong time. What tends to matter most is whether the judgment is satisfied, how old it is, and whether your accounts now show things have settled.
This page looks at what commonly causes a CCJ when you work for yourself, how to show a lender the dip has passed, and how your business structure can change what the judgment actually means for you personally. For the general position on judgments, see remortgaging with a CCJ, and for how self-employed income is assessed generally, see self-employed with bad credit.
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.
- Employment
- Self-employedLenders commonly ask for tax calculations and accounts covering one or more years.
Read the main guide: Remortgaging when you are self-employed and have bad credit
In short
- A self-employed CCJ often follows a specific difficult trading period, such as a client non-payment or a tax bill.
- Satisfied CCJs, and older ones, are generally viewed more favourably than recent, unsatisfied ones.
- Accounts and bank statements showing recovery since the judgment can support your case.
- Whether the CCJ is personal or tied to your business structure changes how it may be viewed.
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.
What tends to lead to a CCJ when you are self-employed?
A personal CCJ picked up while self-employed often traces back to a specific point: a large invoice a client never paid, a dispute with a supplier, or a self-assessment tax bill that became due during a quiet trading spell. None of this changes how the judgment shows on your credit file, but it does give you a story to tell an adviser.
If you trade as a sole trader, a CCJ relating to your business is legally personal, because you and the business are the same person. If you run a limited company, a CCJ against the company is different from one against you, unless you gave a personal guarantee. See business CCJs and remortgaging for how that distinction is generally treated.
Showing a lender your trading has recovered
Lenders looking at a self-employed CCJ are really asking whether the trading problem behind it has passed. Evidence that lines up with the judgment date helps an adviser make that case.
- Accounts or SA302s covering the year the CCJ arose and the years since, showing the trend
- Business bank statements from the difficult period and from now
- A short written explanation of what happened and what has changed
- A reference from your accountant if one is available
Does the type of CCJ change how it is viewed?
| Type | What it may involve | What can help |
|---|---|---|
| HMRC self-assessment debt | A tax bill unpaid after a slow trading year | Evidence the return was filed and any Time to Pay arrangement kept to |
| Supplier or trade account | A dispute or a bill left unpaid during a cash flow gap | Correspondence showing the issue was resolved or the debt satisfied |
| Client non-payment | A CCJ raised against you by a client, or one you raised that turned into a counterclaim | Records showing the underlying contract and current client relationships |
| Personal guarantee called on | A company debt that became personal because a guarantee was called | Confirmation of the company’s current trading position |
General information only. Every situation is different, and an adviser will look at the specifics.
Should you pay off the CCJ before you apply?
A satisfied CCJ shows the debt has been dealt with, though it still stays on your file for 6 years from the judgment date. If you paid within one calendar month of the judgment, it may not show on the Register of Judgments, Orders and Fines at all. Our page on paying off a CCJ covers the difference between paying before you apply and clearing it on completion, and a certificate of satisfaction is worth obtaining once it is settled.
Using a remortgage to raise money for the judgment
Some self-employed applicants want to borrow extra on a remortgage to clear a CCJ or the debt behind it. This turns an unsecured debt into one secured on your home, and a longer term can mean paying more overall. If the debt is causing wider financial difficulty, free advice from MoneyHelper or National Debtline is worth having before deciding.
What may affect a self-employed CCJ remortgage
| Factor | Why it matters |
|---|---|
| Satisfied or unsatisfied | A satisfied judgment shows the debt has been dealt with, even though it stays on file for the full 6 years. |
| Age of the judgment | Older judgments, especially satisfied ones, are generally viewed more favourably than recent activity. |
| Personal or business-related | Whether the CCJ is against you, a personal guarantee, or a company you run changes how it is treated. |
| Trading position since | Accounts and bank statements showing recovery since the judgment date can support your case. |
| Amount of the judgment | A small trade account dispute may be viewed differently from a large unpaid debt. |
| Number of judgments | One CCJ tied to a single bad period may be easier to explain than several spread over time. |
| Length of trading history | A longer, otherwise steady trading record can offset a single difficult year. |
| Loan-to-value and equity | More equity can widen the choice of lenders when income and credit are both under review. |
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 and current status
- SA302s and tax year overviews, or accounts, for the last 1 to 2 years
- Business and personal bank statements covering the period and now
- A short explanation of what caused the judgment
- Confirmation of whether the CCJ is personal or relates to your business structure
- A certificate of satisfaction if the debt has been paid
- Your accountant’s details, if you have one
Frequently asked questions
Can I remortgage if I still have an unsatisfied CCJ and I am self-employed?
It can be harder, since some lenders want a satisfied credit file and others want cleaner self-employed evidence. Both together narrows the field further. Clearing the debt, or being able to show a firm plan to, can help an adviser find a suitable lender.
Does a CCJ from an unpaid client invoice count against me the same as any other CCJ?
Your credit file shows the judgment itself, not the reason behind it. A lender may still be interested in the story, especially if it shows a one-off problem rather than a pattern, but the record on file is treated the same way.
My accounts show a loss in the year my CCJ happened. Will that cause a problem?
It might raise a question, but a single weak year alongside a clear explanation and stronger years either side is often easier to present than an ongoing decline. Bring later accounts and bank statements that show the recovery.
Should I get a certificate of satisfaction before applying?
It is worth having if the CCJ has been paid, since it provides clear evidence for an adviser and can help avoid queries during underwriting. See our guide on what a certificate of satisfaction is for how to apply.
Can I use my remortgage to pay off the CCJ itself?
Some people raise extra funds this way, but it means securing what was unsecured debt against your home. Consider the alternatives first, and see our page on paying off a CCJ for how paying before or during completion differs.