Adverse Credit Mortgage Guide | Everything You Need to Know. Struggling to get a mortgage because of past financial difficulties? You’re not alone. Many people with adverse credit, whether that’s missed payments, defaults, CCJs, or even bankruptcy, believe homeownership or remortgaging is out of reach. The good news is, while it may feel daunting, it is still possible to secure a mortgage with the right guidance and lender.
If you’re considering buying your first home, moving house, or remortgaging but worried that your credit history will hold you back, this guide will help. We’ll explain what “adverse credit” really means, how it affects your mortgage options, and the practical steps you can take to improve your chances of approval.
By the end, you’ll understand the key criteria lenders look at, what mortgage products are available, and how specialist mortgage brokers can support you in finding the right solution.
What Is “Adverse Credit” and Does It Mean You Can’t Get a Mortgage?
Let’s clear something up from the start.
Having bad credit does not mean you can’t get a mortgage.
It just means your route to one might look a little different, and that’s okay.
Adverse credit (sometimes called poor or bad credit) can include:
Missed or late payments on loans or credit cards
County Court Judgements (CCJs)
Defaults on accounts
Bankruptcy or Individual Voluntary Arrangements (IVAs)
Debt Management Plans (DMPs)
Repossession
These events stay on your credit file for six years, but the impact they have on your mortgage chances depends on the type, the amount involved, and how long ago they happened.
Can You Get a Mortgage with Bad Credit?
Yes, and here’s how.
Specialist lenders (sometimes called “adverse credit lenders” or “subprime lenders”) offer mortgages designed for people with past financial issues. These lenders often work only through specialist mortgage advisers, who can access deals not available on the high street.
A mortgage broker who understands the adverse market can help you:
Find lenders who accept your specific credit history
Understand your eligibility and prepare your application
Minimise the deposit required
Secure the best possible interest rate for your circumstances
Myth-Busting: Common Misconceptions About Adverse Credit Mortgages
Let’s bust a few common myths that stop people from exploring their options:
| ❌ Myth | ✅ Truth |
|---|---|
| “I have bad credit – I’ll never get a mortgage.” | Many lenders offer mortgages specifically for people with adverse credit. Your credit score alone doesn’t define your eligibility. |
| “I need a huge deposit if I’ve got poor credit.” | A higher deposit can help, but some lenders will accept as little as 15%, depending on the age and severity of the credit issues. |
| “I can’t apply again after being declined.” | Every lender has different criteria. Just because one says no doesn’t mean others will — a specialist broker can find the right match for you. |
| “I have to wait 6 years before I can even think about a mortgage.” | Some lenders consider applicants just 12 months after a default or CCJ — even sooner for less serious issues like missed payments. |
| “Adverse credit mortgages come with sky-high interest rates.” | Rates are higher than mainstream deals, but not extreme. A broker can help you access the best available rate for your situation. |
| “No lender will touch me if I’ve been in a Debt Management Plan or IVA.” | Not true — some lenders will accept applicants currently in or recently out of DMPs or IVAs, depending on the circumstances and conduct. |
| “If I’ve had a bankruptcy or repossession, I’ll never get a mortgage.” | Lenders exist who will consider applications 3–6 years after bankruptcy or repossession, especially if you’ve rebuilt your credit in that time. |
What Lenders Look At (Besides Your Credit Score)
Lenders will assess:
When the credit issues occurred, the older, the better
How serious they were – missed phone bills aren’t the same as a repossession
Whether the issues have been satisfied – i.e. paid off
Your current financial behaviour – are you managing credit well now?
Your income and affordability – can you afford the repayments?
How Long Do I Have to Wait After an Adverse Credit Event?
| Credit Event | Minimum Time Before Some Lenders Will Consider |
|---|---|
| Missed payments | 3-6 months |
| Defaults | 12 months+ |
| CCJs | 12 months+ |
| Debt Management Plan | 12 months (if running well) |
| IVA | Typically 3 years after completion |
| Bankruptcy | 3-6 years (after discharge) |
| Repossession | Typically 6 years |
Note: These are general timeframes. A mortgage broker can assess your specific situation and find the right lender for you.
What Kind of Deposit Will I Need?
This varies. The more severe and recent the adverse credit, the higher the deposit typically required. Here’s a rough guide:
Mild issues (older than 2 years) – from 15% deposit
More recent issues – around 20-25% deposit
Bankruptcy/recent CCJs or Defaults – expect 30-40% deposit
Every case is unique, and some lenders may go lower depending on other strengths like high income or a clean recent history.
How to Prepare for an Adverse Credit Mortgage Application
To give yourself the best chance of success:
Get your credit reports from all three agencies: Experian, Equifax, and TransUnion
Check for errors – report and fix any inaccuracies
Register on the electoral roll
Avoid taking out new credit in the months before applying
Work with a mortgage adviser who specialises in bad credit cases
How to Prepare for an Adverse Credit Mortgage Application
To give yourself the best chance of success:
Get your credit reports from all three agencies: Experian, Equifax, and TransUnion
Check for errors – report and fix any inaccuracies
Register on the electoral roll
Avoid taking out new credit in the months before applying
Work with a mortgage adviser who specialises in bad credit cases
Why Use a Specialist Mortgage Broker?
Not every borrower fits the standard lending criteria used by high-street banks. If you are self-employed, have variable income, an unusual property type, or a history of credit issues, you may need expert help to secure the right mortgage.
A specialist mortgage broker understands these complexities and works with lenders who are open to more flexible underwriting. Instead of relying on automated decisions, they present your case in the best possible light, improving your chance of approval.
Access to a Wider Range of Lenders
Most high-street lenders offer only their own limited products. Specialist brokers, however, have whole-of-market access, including niche and intermediary-only lenders that you can’t approach directly.
This means you get a far greater choice of mortgage deals, including products designed for:
Self-employed or contract workers
Buy-to-let and limited company landlords
Adverse credit or previous financial issues
Bridging and development finance
Semi-commercial and complex property types
With access to such an extensive panel, a broker can identify options that match both your goals and affordability.
Expert Negotiation and Personal Service
Specialist brokers don’t just find deals, they negotiate on your behalf. They understand lender criteria, how to interpret affordability rules, and which supporting documents to provide.
This expertise can save you time, money, and stress, ensuring the process runs smoothly from application to completion. You also gain a single point of contact who clearly explains every stage, avoiding confusion and delays.
Support for Adverse Credit or Unique Circumstances
If you’ve experienced credit issues or been declined by a bank, a specialist broker can often find a solution. They work with lenders who assess applications individually rather than automatically rejecting based on credit scores.
Whether you’ve faced CCJs, defaults, or self-employment challenges, these brokers know how to structure your application and position your profile positively.
Regulated, Transparent, and Trusted
All brokers listed on Connect Experts are FCA-authorised and committed to providing honest and transparent advice. You’ll receive a clear explanation of fees, lender options, and any potential risks before proceeding, giving you confidence that you’re making an informed financial decision.
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FAQ: Adverse Credit Mortgage Guide
| Question | Answer |
|---|---|
| What is an adverse credit mortgage? | An adverse credit mortgage is designed for borrowers who have a poor credit history, such as missed payments, defaults, or County Court Judgments. Lenders assess your overall financial situation rather than focusing solely on past credit issues. |
| Can I get a mortgage with bad credit in the UK? | Yes, many specialist lenders offer mortgages to clients with bad credit. Approval depends on factors such as deposit size, income stability, and the severity of your credit issues. Working with a whole-of-market adviser can help identify the right lender. |
| Will I need a larger deposit for an adverse credit mortgage? | Typically, lenders ask for a higher deposit, often between 15% and 30% of the property’s value. The exact amount depends on how recent or severe your credit problems are. A higher deposit reduces lender risk and improves approval chances. |
| How do lenders assess my application? | Lenders review your credit report, income, debt levels, and current financial behaviour. They focus on whether you can afford repayments now, rather than only on past mistakes. Providing accurate documentation and a clear explanation for any credit issues can strengthen your application. |
| What types of adverse credit issues can lenders accept? | Depending on the lender, accepted issues can include missed payments, defaults, CCJs, IVAs, debt management plans, and previous bankruptcy. Some lenders specialise in helping clients rebuild credit through responsible borrowing. |
| Will I pay a higher interest rate? | Yes, interest rates are usually higher for adverse credit mortgages to reflect increased risk. However, rates can improve over time if you maintain good financial behaviour and demonstrate consistent repayment history. |
| Can I remortgage with bad credit? | Yes, it’s possible to remortgage even with bad credit. Many clients use adverse credit remortgages to consolidate debts or secure a better deal once their credit profile improves. Specialist advisers can help compare options. |
| How long do credit problems stay on my record? | Most credit issues remain on your credit file for six years. After that, they are automatically removed. However, lenders may still consider your financial conduct after that period, so maintaining good habits is essential. |
| Can I improve my chances of approval? | Yes, by reducing existing debts, saving a larger deposit, registering on the electoral roll, and avoiding multiple credit applications. Seeking guidance from an experienced mortgage adviser can make a significant difference. |
| Why use Connect Experts for an adverse credit mortgage? | Our advisers specialise in complex cases, including bad credit, self-employed, and specialist lending. We work with a wide network of lenders offering flexible options for clients who may have been declined elsewhere. |