Glossary · UK
What is Charging Order?
A court order that secures an unsecured debt against your property. The debt must be repaid when you sell or remortgage.
Full Definition
A charging order is a court order obtained by a creditor that converts an unsecured debt (such as a personal loan, credit card debt, or an outstanding County Court Judgment) into a secured debt against your property. Once a charging order is in place, the creditor has a legal charge over your home — similar in effect to a second mortgage — meaning that if you sell or remortgage the property, the debt (plus any accrued interest and costs) must be paid off from the proceeds before you receive the remaining equity. A creditor can apply for a charging order only after they have already obtained a CCJ or other court judgment against you. The court considers whether making the order is appropriate, weighing the creditor's interests against any hardship to you or other people living in the property. A charging order does not automatically mean you will lose your home; the creditor must apply separately for an order for sale, which courts typically grant only as a last resort, especially where the property is a family home. However, the charge remains registered at HM Land Registry and will appear in official searches when you try to sell or remortgage, and the debt must be cleared at that point.