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 thinking about buying your first home, moving house, or remortgaging but worried 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
What Types of Mortgages Are Available?
Bad credit doesn’t limit you to just one mortgage type. You can often still access:
Fixed-rate mortgages – predictable monthly payments
Tracker or discounted variable rates
Buy-to-let mortgages – yes, even with adverse credit
Self-employed options – with bad credit and non-traditional income
The key is finding the right lender.
Why Use a Specialist Mortgage Broker?
Applying to the wrong lender can damage your credit score further if you’re declined. A specialist broker:
Knows which lenders will accept your profile
Saves you time, money, and stress
Helps you build a plan to buy now or in future
Can often access exclusive rates not found online
They’ll help you avoid unnecessary credit checks and give you an honest appraisal of what’s possible.
Real Client Example (Case Study)
Claire, 38, from Birmingham, had two defaults from a previous utility bill and phone contract totalling £1,100. She’d cleared them both, but her bank had told her she couldn’t get a mortgage for at least three more years.
She contacted a specialist broker who reviewed her case and found a lender that accepted applicants with satisfied defaults over 12 months old. Claire had a 15% deposit and a stable income. She was approved within 10 days and is now a homeowner.
Lesson? Don’t assume the high-street answer is the only answer.
When Not to Apply Yet
There are times when applying right now might not be the right move. A good broker will tell you if you’d be better waiting:
If your credit issues are very recent
If you’re still in an IVA or bankruptcy
If you’re close to saving a bigger deposit
If your credit profile will improve significantly in 3-6 months
A specialist will help you create a plan and timeline so you apply when your chances are best.
Can I Remortgage with Adverse Credit?
Yes, though options can be limited, especially if:
You’ve missed mortgage payments
You have recent or unsatisfied CCJs or defaults
If you’re currently on a high interest rate, a broker may still be able to help you switch to a better deal, especially if your adverse credit is over 12 months old.
Summary: What You Need to Know
- You Can Get a Mortgage with Bad Credit – It’s all about finding the right lender
- Specialist Lenders Exist and work only through mortgage advisers
- Your Situation Isn’t Unusual and you’re not alone
- The Sooner You Get Advice, the Better, even if you’re not applying yet
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