| Issues considered | Missed payments, defaults, CCJs, DMPs, IVAs, bankruptcy |
|---|---|
| What matters most | Severity, amount, age and whether settled |
| Typical deposit | Often 10–25%, depending on severity |
| Cost | Rates and fees may be higher with specialist lenders |
| Credit file check | Review all three main agencies before applying |
| Regulation | FCA-regulated residential mortgage |
Who is this for?
- Borrowers with late or missed payments in recent years
- People with satisfied or unsatisfied defaults or CCJs
- Those on, or who have completed, a debt management plan
- Borrowers with a past IVA or discharged bankruptcy
- Anyone declined by a high-street lender because of their credit score
Can I get a mortgage with bad credit?
Often, yes. Many people with past credit problems get a mortgage. Lenders look at what happened, how much it was for, how long ago and whether it has been settled. Recent, larger or repeated problems narrow your options more than one older, small issue.
Some mainstream lenders accept minor or older adverse credit. Specialist lenders consider more serious or recent problems, usually at higher rates and fees and with larger deposits. Approval is never guaranteed.
Lenders also consider why problems occurred. A one-off event, such as redundancy, illness or divorce, followed by a clean record, may be viewed more sympathetically than ongoing issues. Being open about your history from the start helps us present your case properly.
How do lenders view different credit problems?
| Issue | How lenders typically view it |
|---|---|
| Late payments | Often acceptable if few and not recent |
| Defaults | Depends on amount, date and if satisfied |
| CCJs | Depends on amount, date and if satisfied |
| Debt management plan | Some lenders accept, especially if well conducted |
| IVA | Usually needs to be completed, often for some years |
| Bankruptcy | Usually needs to be discharged, often for some years |
Every lender has its own rules. Information usually stays on your credit file for six years.
What can I do to improve my chances?
- Check your credit reports with all three main agencies and correct any errors
- Settle outstanding defaults or CCJs where possible, and keep evidence
- Keep up to date with all current credit and bills
- Register on the electoral roll
- Avoid new credit applications before you apply
- Save a larger deposit if you can
Time also helps. As problems get older, more lenders will consider you.
If a past problem was caused by an error or identity fraud, raise a dispute with the credit reference agency. You can also add a short notice of correction to explain the circumstances.
Why does broker advice matter with adverse credit?
Applying to the wrong lender can lead to a decline and another credit search on your file. A broker who understands lender criteria can match your history to lenders likely to accept it before applying. That reduces unnecessary searches.
We look at your full credit reports, not just a score. We will be honest if a specialist lender is your best option, or if waiting a few months could open up cheaper mainstream lenders. We will also tell you if a mortgage is not right for you yet.
How do specialist lenders set their prices?
Specialist lenders often grade applicants into tiers based on the type, number and age of credit problems. A single satisfied default from several years ago might sit in a near-prime tier. Several recent issues place you in a higher-cost tier. Your loan-to-value also affects pricing, so a larger deposit can move you into a cheaper band.
Many borrowers take a shorter fixed rate with a specialist lender, then remortgage once their credit improves. Early repayment charges, product fees and the risk of rates changing should all be weighed. We set out the total cost over the deal period so you can compare like with like.
Can I remortgage to clear debts if I have adverse credit?
Some lenders allow debt consolidation, including specialist lenders. It can reduce monthly payments, but it can cost more overall because debts are spread over a long term. Unsecured debts become secured on your home, which could be repossessed if you do not keep up repayments.
A second charge mortgage may also be an option if you want to keep your existing mortgage rate. If you are struggling with debt, free help is available from MoneyHelper and debt charities.
How we arrange it
- Free 15-minute call about your history and goals
- Credit reports reviewed in detail
- Lenders shortlisted to avoid unnecessary searches
- Application and underwriting managed
- Offer and completion; review options as your credit improves
Example cases
Illustrative examples based on the type of case we arrange. Not specific clients; every case is different.
£240,000 purchase in Leicester for a couple with a satisfied CCJ
£195,000 remortgage in Glasgow for a homeowner with past mortgage arrears
£300,000 purchase in Luton for a couple who recently completed a DMP
From the blogHow to improve your chances of a mortgage after bad credit: a 12-month plan
Read the articleFrequently asked questions
Can I get a mortgage with a CCJ?
Yes, it may be possible. Lenders consider how large the CCJ was, when it was registered and whether it has been satisfied. Older, smaller, satisfied CCJs are viewed more favourably. Recent or unsatisfied CCJs usually mean specialist lenders, higher costs and a larger deposit.
Can I get a mortgage with a default?
Often, yes. Some lenders accept defaults that are small, old or satisfied. Others accept more recent defaults at higher rates. The number of defaults and whether they are linked to housing costs, such as rent or a previous mortgage, also matters.
How long after bankruptcy can I get a mortgage?
Most lenders want the bankruptcy discharged, and many prefer several years to have passed since discharge. Some specialist lenders consider more recent discharges with a larger deposit. Your conduct since discharge, such as keeping all credit up to date, is important.
Can I get a mortgage while on a debt management plan?
Some specialist lenders consider applicants on a well-run DMP, especially if payments have been made on time for a period. Others require the plan to be completed. Expect a larger deposit and higher costs. We look at lenders with specific DMP policies.
How long do defaults stay on my credit file?
Defaults, CCJs and most negative entries stay on your credit file for six years from the date registered, whether or not you settle them. Settling them is still worthwhile, as lenders view satisfied debts more favourably. After six years, they drop off your file automatically.
Will a missed mobile phone payment stop me getting a mortgage?
Usually not on its own. A single, older missed payment is often acceptable to mainstream lenders. Multiple or recent missed payments narrow your options. Lenders focus most closely on missed mortgage, rent and secured loan payments. Explaining the circumstances to us helps us choose the right lender.
Are bad credit mortgages more expensive?
Usually, yes. Specialist lenders typically charge higher rates and fees to reflect the extra risk. Many borrowers use a specialist lender for a few years, then remortgage to a mainstream lender once their credit has improved. Early repayment charges should be considered when choosing the term.
Should I check my credit score before applying?
Yes. Check your full reports, not just the score, with the main credit reference agencies. Lenders look at the detail behind the score. Correcting errors and understanding what lenders will see helps us choose the right lender first time. It also avoids unwelcome surprises.
Important: Your home may be repossessed if you do not keep up repayments on your mortgage. There may be a fee for mortgage advice: up to 1% of the loan, typically £500.