A high street decline is not a verdict from the mortgage market. It is one lender applying one credit-scoring model, and those models are built to say no quickly rather than to understand your circumstances.
Specialist lenders do the opposite. They look at what happened, when it happened, and what has changed since — and they are willing to be told.
What Counts as Adverse Credit
Very nearly all of it is workable with the right lender. What varies is how much choice you have and what it costs.
- Missed or late payments on credit cards, loans or utilities
- Defaults — widely accepted, with age and size the deciding factors
- County Court Judgments (CCJs) — satisfied CCJs are viewed considerably more favourably than unsatisfied
- Debt management plans, both live and completed
- IVAs — normally after discharge, though some lenders consider an IVA still running
- Bankruptcy and repossession — typically requiring three or more years since discharge, and a larger deposit
- Mortgage arrears, which lenders treat as the most serious category
The Three Things That Decide the Outcome
How recent. The dominant factor by a distance. A default from four years ago is close to irrelevant to many specialist lenders; the same default from four months ago narrows the field sharply. Credit events fall off your file after six years.
How serious. A £200 mobile phone default is not a £15,000 CCJ, and lenders that ignore the first will decline the second. Mortgage arrears weigh heaviest of all.
Your deposit. The most powerful lever you control. Adverse credit cases are usually priced at 75-85% loan to value, and every additional 5% deposit widens the lender list and lowers the rate.
The rate will be higher than a clean-credit case. The realistic objective is a mortgage you can refinance onto better terms in two or three years, once the adverse credit has aged — not the cheapest rate available today.
What Helps a Specialist Application
- A clean recent payment history, particularly on any existing mortgage or rent
- Satisfied rather than outstanding defaults and CCJs
- A straightforward explanation of the cause — illness, redundancy, a business failure, a separation. Lenders take context seriously when it is documented.
- Stable current income, whether employed or self-employed
- No new credit searches immediately before applying
Get your credit files from all three agencies first. They differ, and one lender may be reading a report you have not seen.
Where a Mortgage Is Not the Right Answer Yet
Sometimes the honest advice is to wait six months for a default to age, or to clear an outstanding CCJ before applying. We would rather say that than place you on an expensive product you did not need.
Where the requirement is capital rather than a purchase, a second charge mortgage or secured loan can raise money against existing equity without disturbing a mortgage you would struggle to replace.
Frequently Asked Questions
Can I get a mortgage with a default?
In most cases, yes. Age and size matter far more than the existence of the default itself, and satisfied defaults are treated more favourably.
How long after bankruptcy can I get a mortgage?
Some lenders consider applications from one year after discharge with a substantial deposit. Choice improves markedly at three years, and considerably again at six.
Will applying damage my credit score further?
An agreement in principle can be obtained on a soft search with many lenders, leaving no visible footprint. A full application does leave a hard search, which is why placing the case with the right lender first time matters.
Can I remortgage with bad credit?
Yes, and it is often easier than a purchase, particularly where there is meaningful equity and the mortgage itself has been paid on time.
Your home may be repossessed if you do not keep up repayments on your mortgage.