You’ve found a property you love. You’ve worked out your deposit, checked your salary and started imagining where the furniture might go.
But there’s something in the back of your mind.
A missed credit card payment. An old default. Perhaps a County Court Judgment (CCJ) from a difficult period in your life.
And now you’re wondering:
“Will anyone actually give me a mortgage with my credit history?”
The short answer is that yes, it may still be possible to get a mortgage with adverse credit in the UK.
But it depends on what happened, how recently it happened, your current financial circumstances and which lender is assessing your application.
As a mortgage adviser, one thing I’ve learnt from working with clients is that two people who both describe themselves as having “bad credit” can have completely different mortgage options.
That’s why I wouldn’t automatically tell somebody they can’t get a mortgage simply because their credit report isn’t perfect.
Equally, I wouldn’t promise somebody a mortgage without properly understanding their circumstances.
Let’s look at what adverse credit actually means, how lenders assess it and what you can do before applying.
What Is Adverse Credit?
Adverse credit is a term used to describe negative information in your credit history that could affect your ability to borrow money.
It can include:
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Missed or late payments on loans, credit cards or other financial commitments.
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Defaults, where a lender has recorded a breakdown in your repayment agreement.
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County Court Judgments (CCJs).
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Debt Management Plans.
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Individual Voluntary Arrangements (IVAs).
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Bankruptcy.
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Previous mortgage arrears.
These aren’t all viewed in the same way.
A single missed payment several years ago is very different from having multiple recent defaults or currently struggling to keep up with your debts.
And that’s where understanding individual lender criteria becomes important.
Will a Missed Payment Stop Me Getting a Mortgage?
Not necessarily.
Imagine two first-time buyers.
The first missed a credit card payment four years ago. Since then, they’ve maintained their financial commitments without any further problems.
The second has missed several loan and credit card payments during the past three months and is still experiencing financial difficulties.
Both have adverse credit.
But the circumstances are very different.
Mortgage lenders generally consider the nature, severity and age of adverse credit, alongside your income, affordability and wider financial circumstances.
Some lenders may consider older missed payments that others would find unacceptable.
This is why I prefer looking at someone’s actual credit report rather than simply asking:
“Is your credit score good or bad?”
That score doesn’t tell the whole story.
There Isn’t One Credit Score You Need to Get a Mortgage
This is probably one of the biggest misconceptions about credit and mortgages.
People regularly worry because an app has told them their credit score is poor.
But there isn’t a universal credit score that guarantees mortgage approval.
Experian, Equifax and TransUnion are the three main UK consumer credit reference agencies. Mortgage lenders use information from credit reports alongside their own lending criteria and assessment systems.
So an apparently excellent score doesn’t guarantee acceptance.
Equally, a disappointing score doesn’t automatically mean you can’t get a mortgage.
I’d be much more interested in understanding what’s actually recorded on your credit file.
And, importantly, whether that information is accurate.
Can I Get a Mortgage with a CCJ?
Potentially, yes.
But a CCJ is something we need to understand properly before approaching a lender.
One of the first questions I’d ask is:
“When was the CCJ registered, how much was it for, and has it been paid?”
Those details can affect which lenders may be willing to consider your application.
A CCJ normally remains on the Register of Judgments, Orders and Fines for six years.
If you pay it in full within one month of the judgment, you can apply to have it removed from the register.
If you pay it later, it can be marked as satisfied but will normally remain registered for the six-year period.
It’s important not to confuse having a satisfied CCJ with having no adverse credit.
Paying an outstanding debt may improve how some lenders view your circumstances, but it doesn’t mean every lender will accept your application.
Nor does having a CCJ necessarily mean you must wait six years before considering a mortgage.
The details matter.
What About Defaults?
A default is another type of adverse credit that can affect your mortgage options.
Defaults generally remain on your credit report for six years from the date of default.
Paying the debt doesn’t automatically remove an accurately recorded default before that period ends.
However, that doesn’t mean every lender views defaults identically.
Some lenders may consider older or satisfied defaults, depending on their criteria and the wider application.
Others may have stricter requirements.
The important thing is to understand precisely what’s recorded before making an application.
If your credit problems are recent or you’re still struggling with outstanding debts, it may be more appropriate to address those difficulties before taking on a mortgage.
Do I Need a Bigger Deposit If I Have Adverse Credit?
You might.
Depending on your circumstances, adverse credit can limit the lenders and mortgage products available to you.
Some lenders specialising in applicants with previous credit difficulties may require larger deposits or charge higher interest rates.
But there’s no universal deposit requirement for somebody with adverse credit.
Your options will depend on the nature of your credit history, the property, the amount you want to borrow and the lender’s criteria.
And I’d be careful about assuming that saving a bigger deposit will automatically solve everything.
A larger deposit may improve your options, but it doesn’t remove the need to demonstrate that the mortgage is affordable.
Are Specialist Adverse Credit Mortgages More Expensive?
They can be.
Some lenders specialise in considering applications from people whose credit histories fall outside the criteria of more mainstream lenders.
However, their products may carry higher interest rates, larger fees or additional eligibility requirements.
That doesn’t mean a specialist mortgage is necessarily inappropriate.
But I think it’s particularly important to understand the overall cost and not simply concentrate on whether a lender is willing to accept your application.
For example, securing a mortgage with a higher interest rate could result in significantly higher monthly payments than you’d originally anticipated.
And if those payments leave you financially stretched, getting the mortgage approved hasn’t necessarily solved your problem.
Being able to obtain a mortgage and being able to afford one comfortably are two different things.
Should I Wait for My Credit History to Improve?
Sometimes waiting may give you access to a wider range of mortgage options.
But I wouldn’t automatically recommend waiting without first understanding your circumstances.
I’ve worked on cases where adverse credit influenced the choice of mortgage product and the length of the initial fixed-rate period.
For example, in one case involving adverse credit, we considered a two-year fixed mortgage partly because it provided an opportunity to review the client’s circumstances sooner.
That didn’t mean assuming their credit history would improve sufficiently to qualify for cheaper borrowing in two years.
Mortgage rates could increase. Lender criteria could change. Their financial circumstances could also change.
All of those risks need to be considered.
For somebody else, waiting before applying may be the more appropriate decision.
The important point is that adverse credit shouldn’t automatically lead to either an immediate application or an arbitrary waiting period.
What If My Partner Has Bad Credit but I Don’t?
This is another situation where mortgage applications aren’t always straightforward.
If you’re buying together, a lender will normally assess both applicants.
That means one person’s adverse credit can affect the mortgage options available to the couple, even if the other person has an excellent credit history.
Depending on your circumstances, there may be different ways of structuring the application. However, affordability, ownership arrangements, lender criteria and your wider financial circumstances all need consideration.
And removing somebody from a mortgage application isn’t necessarily an appropriate or practical solution.
It’s important to understand the financial and legal implications before making that decision.
What If I’m an Existing Homeowner with Adverse Credit?
This is particularly important if your current mortgage deal is approaching its end.
Perhaps you’ve maintained your mortgage payments but experienced difficulties with credit cards or loans since arranging your mortgage.
You may be worried that you won’t qualify for another mortgage when your fixed rate expires.
But you should understand the difference between remortgaging to another lender and changing products with your existing lender.
If you’re up to date with your mortgage payments and aren’t looking to increase your borrowing, you may be able to switch to another product with your existing lender without undergoing a new affordability assessment.
There are exceptions, so eligibility and the available products will depend on your lender and circumstances.
That’s why I wouldn’t assume somebody needs to remortgage elsewhere simply because their current deal is ending.
Sometimes reviewing the existing lender’s options is an important part of the conversation.
Equally, if you’re already experiencing mortgage arrears, I’d encourage you to contact your lender as early as possible rather than simply waiting for the current deal to expire.
What Should I Do Before Applying for a Mortgage with Adverse Credit?
My starting point would be to obtain your credit reports and understand exactly what’s recorded.
You can request a free statutory credit report from each of the three main UK credit reference agencies.
You don’t need to purchase an expensive credit-monitoring subscription simply to access this information.
Check your reports carefully.
If something is incorrect, raise a dispute with the relevant credit reference agency or the organisation that supplied the information.
It’s also important to review your existing financial commitments.
And this brings me to something I encounter surprisingly often.
When I ask clients whether they have any loans or credit cards, they’ll sometimes confidently tell me they don’t.
Then I ask:
“And no car finance?”
Suddenly they remember the monthly payment going out for their car.
It’s easily overlooked because many people don’t mentally categorise car finance in the same way as other borrowing.
But lenders will consider your financial commitments when assessing mortgage affordability.
I’d also be cautious about making several mortgage applications simply to see which lenders might accept you.
Repeated applications involving hard credit searches could affect your credit profile, so it’s worth researching lender criteria first.
What If I’m Currently Struggling with Debt?
This is where I think it’s important to distinguish between somebody who has experienced credit difficulties in the past and somebody who is still experiencing them today.
If you’re currently struggling to maintain your existing financial commitments, taking on a mortgage may not be appropriate.
Your immediate priority may be to stabilise your finances and understand the support available to you.
Free, confidential debt advice is available through organisations such as StepChange, National Debtline and Citizens Advice.
There’s no benefit in arranging a mortgage that leaves you unable to manage your other essential commitments.
Frequently Asked Questions
Can I get a mortgage with bad credit and a small deposit?
Potentially, although your options may be more limited. Some lenders may require a larger deposit when considering applications involving adverse credit. Your eligibility will depend on the nature of your credit history and your wider circumstances.
Can I get a mortgage with a default?
Potentially. Some lenders may consider applicants with defaults, particularly where the credit problems are older. However, lender requirements differ, and acceptance isn’t guaranteed.
Can I get a mortgage with a CCJ?
It may be possible. Lenders can consider factors such as the age, amount and status of the CCJ, alongside your income, deposit and other financial circumstances.
How long after adverse credit can I get a mortgage?
There isn’t one waiting period that applies to every type of adverse credit or every lender. The appropriate timing will depend on your credit history, your current circumstances and the lender’s requirements.
Can I remortgage if my credit score has dropped?
Potentially. Depending on your circumstances, your existing lender may allow you to switch to another mortgage product without undergoing a new affordability assessment. Switching to a different lender will usually involve a new assessment.
Final Thoughts
So, can you get a mortgage with adverse credit in the UK?
Yes, it may be possible. But having adverse credit doesn’t tell me enough to know which mortgage options are available to you.
I’d want to understand what happened, when it happened, whether any outstanding debts have been settled and how you’re managing your finances today.
Then we can establish whether there are lenders whose criteria may suit your circumstances.
Sometimes that means considering specialist lenders.
Sometimes it means waiting.
And sometimes an existing homeowner may have options with their current lender that they hadn’t considered.
One thing I wouldn’t do is encourage somebody to take on an expensive mortgage simply because they’ve found a lender willing to accept their credit history.
Getting the mortgage approved is only the beginning.
Being able to afford it comfortably, while maintaining your financial resilience, is what really matters.
If you’re concerned about your credit history and want to understand what it could mean for your mortgage options, you can book an appointment with me here:
https://veganmortgageadviser.co.uk/appointment
Your home may be repossessed if you do not keep up repayments on your mortgage.
Mortgage availability, interest rates, fees and deposit requirements depend on your individual circumstances and lender criteria. This article provides general information and does not constitute a personal recommendation.