Adverse Credit Mortgages

An adverse credit mortgage is designed for people whose credit history does not meet the standard criteria used by most high-street lenders. This usually means that an application has been declined automatically, even though the applicant may now be in a stable financial position.

Adverse credit can cover a wide range of situations, including missed payments all the way through to bankruptcy. The impact of these issues depends on factors such as how recent they were, whether they have been satisfied and the overall affordability of the mortgage.

Unlike mainstream lenders, specialist adverse credit lenders assess applications on a case-by-case basis. This means they look at the full-picture – including income, deposit, current financial behaviour and future affordability – rather than relying solely on automated credit scoring.

“Adverse credit cases are rarely straightforward. Each lender applies different criteria and what works for one applicant may not work for another. Getting the right advice from the outset helps avoid unnecessary declines and improve the chances of a successful outcome.”

Steven Neale – Specialist in Adverse Credit Mortgages

What is a Adverse Credit Mortgage?

Having adverse credit doesn’t automatically mean you can’t get a mortgage. Many people are declined by high-street lenders due to past financial issues, even when their current  circumstances are stable and affordable. An adverse credit mortgage is designed for applicants who fall outside standard lending criteria. This can include missed payments, defaults, CCJ’s, IVA’s or previous insolvency. With the right advice and access to specialist lenders, it is often still possible to secure a mortgage.

As a specialist adverse credit mortgage broker, I help clients understand their options, avoid unnecessary credit checks and approach lenders who assess applications on a individual basis rather than a automated scoring system alone.

Types of Adverse Credit Mortgages

Adverse credit can take many different forms and the mortgage options available will depend on the type of credit issue involved, how recent it was and your current financial position.

Below are the most common adverse credit situations I help clients with along with dedicated guidance for each

A mortgage with bad credit is typically suitable for applicants with a low credit score or a history of missed payments. This can include late payments on credit cards, loans or household bills. While high-street lenders often decline these applications automatically, specialist lenders may take a more flexible view based on affordability and recent financial behaviour.

Having a county court judgment (CCJ) does not necessarily prevent you from getting a mortgage. Lenders will usually consider a mortgage with CCJ depending on when the CCJ was registered, if it has been satisfied and how your credit profile has improved since. Specialist advice is essential as criteria varies widely between lenders.

An Individual Voluntary Arrangement (IVA) can limit mortgage options with mainstream lenders, particularly during the arrangement itself. However, some specialist lenders may consider a mortgage with an IVA depending on factors such as deposit size, income stability and time since approval or completion.

A mortgage after bankruptcy does not automatically rule out home ownership. Many lenders will consider applications once you have been discharged and have taken steps to rebuild your credit. The length of time since you discharge and your current financial conduct are key factors.

Defaults are common reasons for declined applications but a mortgage with defaults is still possible. Lenders will usually assess how old the defaults are, the amounts involved and whether they have been settled. In some cases, historical defaults may have little impact on available mortgage options.

Mortgage arrears occur when payments have been missed on an existing mortgage or secured loan. While this can limit options with high-street lenders, some specialist providers may still consider applications  for mortgages with arrears depending on how recent the arrears were, how they were resolved and your current affordability.

A debt management plan (DMP) is an informal arrangement to repay outstanding debts and can affect how lenders assess mortgage applications. Specialist lenders may consider applicants for a mortgage with a DMP, depending on if the plan is active or completed and how overall finances are managed.

A previous property repossession does not automatically prevent you from getting a mortgage after repossession. Lenders will usually consider how long ago the repossession occurred, the reason behind it and the steps taken since to rebuild financial stability.

Being refused a mortgage does not always mean you are ineligible – It often means the application was submitted to the wrong lender. Understanding why a refusal occurred can help identify alternative lenders whose criteria are better suited to your circumstances and help you get a mortgage after a refusal.

Contractor mortgages are designed for self-employed professionals who work on a contract basis rather than a traditional salary. Lenders may assess income using contract value and day rate rather than standard payslips and specialist advice can help identify suitable options and help you get a contractor mortgage with bad credit.

How Specialist Adverse Credit Mortgage Advice Helps

Adverse credit cases are rarely straightforward and applying to the wrong lender can lead to unnecessary declines and further damage to your credit profile. Each lender applies different criteria and what works for one applicant may not work for another.

A specialist adverse credit mortgage broker understands how lenders assess complex credit histories and can match your circumstances to the most suitable options from the outset. This reduces the risk of failed applications and improves the chance of a successful outcome by:

  • Identifying lenders who consider adverse credit on a case-by-case basis
  • Avoiding unnecessary credit checks and declined applications
  • Explaining realistic deposit, rate and affordability expectations
  • Guiding you through the process with clear and honest advice

 

By taking a structured and informed approach, it is often possible to move forward with confidence even after being declined elsewhere.

Speak to a Adverse Credit Mortgage Specialist

I have over 30+ years experience in specialist mortgages and have helped hundreds of clients from all over the UK with circumstances that varies across all of these adverse mortgage types.

If you are still unsure which type of adverse credit applies to you or you have been declined by a high-street lender, specialist advice can make the steps clearer.

I offer confidential mortgage advice and will take the time to understand your circumstances before recommending suitable options. There is no pressure, just clear guidance based on your situation.