Charging Orders Guide UK (Creditor Puts Charge on Your Home)
A charging order can secure an unsecured debt against your property, potentially forcing a sale. Here is how they work, how to object, and how to get one removed.
If you owe a creditor money under a county court judgment (CCJ) and fail to pay, the creditor can apply for a charging order — a legal mechanism that secures the debt against property you own (typically your home). This turns your unsecured debt into a secured debt, giving the creditor rights over the property. If you sell the property, the debt is paid from the proceeds. In extreme cases, the creditor can apply for an order for sale to force you to sell your home. This guide covers the charging order process, how to object, and how to get a charge removed. See our Bailiffs guide and Attachment of Earnings guide for other enforcement routes.
What Is a Charging Order
A charging order is a court order that places a legal charge on land or property you own (or part-own) as security for a debt. It does not force you to sell your home immediately, but it gives the creditor an interest in the property. If you sell the property (or transfer ownership), the debt plus interest and costs must be paid from the sale proceeds before you receive anything. Charging orders are governed by the Charging Orders Act 1979 and are available for any debt over £1,000 that has been confirmed by a county court judgment (CCJ). The most common debts that result in charging orders include: credit card debts, personal loans, store card debts, and business debts. Once a charge is registered, it appears on your property's title at HM Land Registry and may show on credit searches that involve property. The charge accrues interest at 8% per annum (the statutory judgment rate) until the debt is paid. A charging order does not affect your right to live in the property, but it severely restricts your ability to sell or remortgage without the creditor's consent. You cannot simply sell the property and move — the creditor must be paid first. If you have multiple creditors, each can apply for a separate charging order against the same property.
How a Creditor Gets a Charging Order
The charging order process happens in two stages. Stage 1: The creditor applies to the county court for a charging order (interim) using form N379. The court will make an interim charging order if satisfied that: the creditor has a CCJ against you for at least £1,000, you have not paid the judgment debt, and you own property (alone or jointly) that can be charged. The interim order is made without a hearing and is registered immediately at the Land Registry. The court sends you a copy with notice of a final hearing date. Stage 2: Final charging order hearing. At this hearing (about 4–6 weeks after the interim order), the judge decides whether to make the charging order permanent (a final charging order). The judge will consider: the amount of the debt, your other debts, your ability to pay, whether you have other assets the creditor could recover from, and any hardship a final order would cause. The court must make a final order unless it would be inequitable (unfair) to do so. If you attend and argue your case effectively, the court may refuse or postpone the order. The creditor pays court fees (currently £119 for the application plus £50 for the hearing), all of which are added to your debt. If the order is granted, the creditor may later apply for an order for sale if the debt remains unpaid.
What a Charging Order Means for Your Property
Once a final charging order is registered against your property, several consequences follow. You cannot sell or transfer the property without paying off the charged debt (plus interest and the creditor's costs). If you try to sell, the solicitor handling the conveyancing will discover the charge during the Land Registry search and will insist it is cleared before completion. The charge also affects remortgaging — most lenders will refuse a new mortgage while a charging order is registered, or they may insist the charge is paid off as a condition of the loan. The charge does not affect your right to live in the property — the creditor cannot evict you. However, if you fall further behind on your mortgage, the mortgage lender may start possession proceedings, and the charging order creditor may try to enforce the charge alongside the lender. The charge attaches to your equitable interest in the property — if you jointly own the property with someone else who is not a debtor, only your share is charged. The creditor can enforce the charge against your share, which can complicate matters for joint owners. The charge remains on the property until the debt is paid in full, even if you die — your estate would need to settle it before transferring the property to beneficiaries. See our Property Inheritance guide for more.
How to Object to a Charging Order Application
When you receive the court papers for an interim charging order, you have a limited window to object. The key grounds for objection are: the debt is not valid (the underlying CCJ was obtained unfairly or you have since paid it), the debt is too small (under £1,000 does not qualify), you do not own property in England and Wales, you have other assets the creditor could reasonably use (e.g. a car or savings), the charge would cause exceptional hardship to you or your dependants (e.g. if you are elderly, disabled, or have children in the home), or the creditor has other ways to recover the debt without charging your home. To object, you must file a witness statement with the court (using form N379 or N380) explaining your grounds, attend the final hearing, and bring evidence (bank statements, medical reports, details of dependants). You can also argue that the charging order should be postponed (rather than refused) if you agree to make regular payments. The court has discretion to refuse the order if it would be inequitable to grant it. Common successful objections include: the debtor is making regular payments under an agreed plan, the debtor's only asset is jointly owned and the co-owner did not consent to the debt, or the debtor is vulnerably housed and a charge could lead to homelessness. Get free advice from Citizens Advice or a solicitor before the hearing.
Charging Orders and Selling Your Home
If you want to sell your home with a charging order in place, the charge must be discharged on completion. Your solicitor will pay the charged debt (plus accrued interest and costs) from the sale proceeds before you receive your share. If the sale proceeds are insufficient to pay off the charge and your mortgage, you will still owe the remaining balance to the creditor — the charge is not cleared until the debt is paid in full. In some cases, the order for sale application is the bigger concern. If the creditor applies for an order for sale (using form N396), the court can order your home to be sold to pay the debt. The court will only grant an order for sale if the creditor can show that the debt is significant and there is no other reasonable way for the debtor to pay. The court must balance the creditor's right to be paid against the debtor's need for a home. The equity in the property must be sufficient to cover: the creditor's debt, any mortgage, estate agent fees, legal fees, and moving costs. If there is little equity, the court may refuse the order. If an order for sale is made, the court sets a timetable — typically 3–6 months to sell. You can ask for a suspended order for sale which gives you time to pay the debt from other sources. A suspended order is often granted if you can show you will sell the property voluntarily or raise the money from elsewhere within a reasonable period.
Getting a Charging Order Removed
You can apply to have a charging order discharged (removed) from your property in several ways. Pay the debt in full: the simplest method. Once the debt, interest, and costs are paid, the creditor must provide a certificate of satisfaction which you file at the Land Registry to remove the charge. Apply to the court to vary or discharge the order under section 3(5) of the Charging Orders Act 1979. You must show that the circumstances that led to the charge have changed significantly — for example, you have paid off part of the debt, or the debt has become statute-barred (6 years with no payments or acknowledgment). Set aside the underlying CCJ: if the original CCJ was made in error (you never received the claim form, you have a defence, or the judgment was obtained by fraud), apply to set it aside. If the CCJ is set aside, the charging order falls away with it. Bankruptcy or IVA: entering an Individual Voluntary Arrangement (IVA) or bankruptcy will affect the charge. In bankruptcy, the charge is generally overtaken by the bankruptcy proceedings, and the trustee deals with the property. Negotiation with the creditor: some creditors may agree to remove the charge if you make a reduced full and final settlement offer. If the charge is removed, you need to apply to the Land Registry to remove the entry from the property title. The process costs £20–£50 and requires the creditor's written consent or a court order. The charge will also be removed if the property is repossessed by your mortgage lender in some cases.
FAQs
Can a charging order force me to sell my home?
Not automatically — but the creditor can apply for a separate order for sale. The court will only grant this if the debt is significant, there is sufficient equity, and it is reasonable to force a sale. Many charging orders never result in an order for sale.
How long does a charging order last?
A charging order lasts indefinitely until the debt is paid, the order is discharged by the court, or the underlying CCJ is set aside. The charge stays on the property title even if you die — your estate must deal with it.
Can a charging order be registered against a jointly-owned home?
Yes. If you jointly own a property with someone else, the charge applies to your beneficial share. The co-owner's share is not affected unless they are also liable for the debt. This can complicate sale or remortgage.
What is the difference between an interim and a final charging order?
An interim charging order is a temporary order made without a hearing. It is registered against the property immediately. A final charging order is made after a court hearing and is permanent until the debt is paid or the order is discharged.
Can I remortgage with a charging order on my property?
Most mainstream lenders will not approve a remortgage with a charging order in place, as the charge is registered before their charge. Some specialist lenders may consider it if the debt is small and you agree to clear it from the new loan.
👉 Attachment of Earnings Guide → — how creditors can take money from your wages instead of charging your property.