Can I Get a Mortgage or Secured Loan with a Default, CCJ, IVA or Trust Deed?

If you’ve had financial difficulties in the past, such as a default, County Court Judgment (CCJ), IVA or Trust Deed, you might assume borrowing is off the table. But in reality, there are still options available – particularly if you know where to look.

Let’s break down how lenders typically view these credit issues when it comes to mortgages and secured loans.

Defaults & CCJs: Often Workable

Defaults and CCJs are relatively common forms of adverse credit. While mainstream lenders may be cautious, many specialist lenders take a more flexible approach – particularly if:

• The issue is over 12 months old

• It’s been settled or satisfied

• The overall amount is small

• You've maintained good credit behaviour since

✅ Mortgages

Lenders may still consider your mortgage application, especially with a larger deposit (usually 10–15%) and a clean recent track record.

✅ Secured Loans

Getting a secured loan (second charge mortgage) with defaults or CCJs is often easier – especially if you already own a property and have made mortgage payments reliably. Lenders see this as a sign of financial stability, even if your credit history isn’t perfect.

IVAs & Trust Deeds: More Complex, But Not Impossible

Individual Voluntary Arrangements (IVAs) in England and Wales, and Trust Deeds in Scotland, are more formal debt solutions. Because they involve structured repayment plans and are listed on your credit file, they present a greater challenge when applying for new borrowing.

⚠️ Mortgages

Getting a mortgage during or shortly after an IVA or Trust Deed is more difficult – but some lenders will consider your application if:

• The IVA or Trust Deed has been discharged

• You’ve maintained a strong payment history

• You have a substantial deposit (typically 15–25%)

• Your income and affordability are solid

⚠️ Secured Loans

Secured loans may be more accessible than mortgages in these cases. If you’ve already built up equity in your home and made consistent mortgage payments, lenders may be more open to approving a secured loan – even with an IVA or Trust Deed in your history.

We’re Here to Help…

At Celtic Finance, we work with people from all backgrounds – including those with adverse credit. Whether you’re looking for a new mortgage, or a secured loan to consolidate debts or raise funds, we’ll help you understand your options and guide you to the most suitable lenders.

📞 Get in touch today for tailored advice that puts your goals first – even if your credit history hasn’t always been perfect.