Adverse Credit

An adverse credit mortgage is a mortgage for people who have had credit problems in the past.

This could include things like:

  • Missed loan or credit card payments

  • County Court Judgments (CCJs)

  • Defaults

  • Bankruptcy

  • IVA or Debt Management Plan

  • Repossession

These types of mortgages are offered by lenders who are willing to take on more risk. Because of that, you might:

  • Need a larger deposit (usually at least 10%)

  • Pay a higher interest rate

  • Have fewer mortgage options to choose from

Lenders will still look at your income, current financial situation, and how recent or serious the credit issues were. The more time that has passed since the problems, the better your chances.

In short, an adverse credit mortgage helps people with a poor credit history still get a mortgage, though the terms may be less flexible than with a standard mortgage.

There are lenders who specifically lend to customers with adverse credit so most credit profiles can be catered for, no matter how bad the credit history might be.