Client
An employed first time buyer on a good income, buying a residential property to live in, with a 15% deposit. Their credit file carried defaults and CCJs registered more than three years earlier, none of which had been satisfied. They were a foreign national holding indefinite leave to remain.
Objective
To buy a first home without waiting for the adverse entries to age off the credit file or settling them first.
Situation
Two constraints applied here, and each one reduced the lender list on its own.
The CCJs and defaults remained unsatisfied. Plenty of lenders will look at historic adverse credit. Far fewer will look at adverse credit still showing an outstanding balance, because an unsatisfied judgment reads as a live obligation rather than a closed one.
Residency was the second. Foreign national applications are handled inconsistently across the market. Some lenders decline them outright, others cap loan to value, and treatment depends on immigration status rather than nationality.
Neither factor is unusual by itself. Applying at the same time, they left very few viable options.
Challenges
- Defaults and CCJs registered over three years earlier
- Those entries still unsatisfied at the point of application
- Foreign national status alongside adverse credit
- A 15% deposit, which is the practical floor for this profile
What We Did
The work here was lender selection rather than case presentation.
We filtered for lenders that underwrite manually instead of running an automated credit decision. That distinction decides the outcome on a file like this, because an unsatisfied CCJ triggers an automatic decline in most scoring systems regardless of what sits around it.
We also confirmed how indefinite leave to remain would be treated. Settled status is assessed on the same footing as UK citizenship by most of the market, which turned residency into a documentation question. Settling that first was deliberate: it took one constraint off the table before any lender saw the file.
Solution
The case went to a lender running a tiered rate structure, where pricing improves the further back the adverse credit was registered. This lender had no requirement for the entries to be settled. Three years of distance placed the client on a better tier than a recent registration, and the 15% deposit met the minimum for this risk profile.
Outcome
Approved at 85% loan to value. The client completed the purchase without settling the outstanding entries and without waiting for them to drop off the file.
Conclusion
The credit file did not change between the declines and the approval. What changed was the lender it was submitted to. Knowing which lenders underwrite by hand, which accept unsatisfied entries, and how each treats settled status is what makes a profile like this placeable.
Frequently Asked Questions
Can you get a mortgage with an unsatisfied CCJ?
Yes, though only a small number of specialist lenders will consider one. Most require the entry to be settled before they will lend. Where a lender does accept unsatisfied entries, the age of the CCJ and the size of the deposit usually determine the rate offered.
Can a foreign national get a UK mortgage?
Yes, and indefinite leave to remain is generally treated on the same footing as UK citizenship. Time-limited visas are handled differently, often carrying larger deposit requirements and a narrower lender pool, with the remaining duration of the visa a significant factor.
What is the maximum you can borrow with bad credit as a first time buyer?
Some specialist lenders will lend up to 85% loan to value with adverse credit on file. That puts the practical minimum deposit at 15%. Recent or more severe credit issues typically reduce the maximum available.
Why do some lenders decline automatically while others approve?
Automated credit scoring applies fixed rules, whereas manual underwriting assesses the wider circumstances. The same application can fail one lender’s system within minutes and be approved by another lender whose underwriter reviews the file directly.
Final Thoughts
Unsatisfied CCJs alongside foreign national status is one of the harder first-time buyer profiles to place. Lenders who will consider it exist, but there are few enough that identifying them is the substance of the work.
UK Mortgage Broker is a whole-of-market broker, directly authorised and regulated by the Financial Conduct Authority. Circumstances vary and the result here reflects this client alone. It is not an indication of terms available to others. Your home may be repossessed if you do not keep up repayments on your mortgage.
Call 01628 969 500 or email info@uk-mortgagebroker.co.uk to speak with a qualified adviser.
Related Pages
- Bad Credit Mortgages UK – How lenders assess defaults, CCJs and IVAs, and which will consider unsatisfied entries.
- First Time Buyer Mortgage – What first-time buyers need in place before applying.
- Can I Get a Mortgage – Eligibility criteria across income, deposit, credit and residency.
- How Lenders Check Income – The documentation lenders request and how employed income is verified.
- Mortgage Rates UK – How deposit size and credit profile affect the rate offered.