- +44 7469 753122
- Mon - Fri 09:00am - 06:00pm
- Leeds
Adverse Credit Mortgages
A less-than-perfect credit history doesn't necessarily mean your home ownership plans have to stop. Specialist lenders may offer solutions based on your individual circumstances.
Let's Talk About Your Options
If you've been declined by a high-street lender or have concerns about your credit history, speak to our team about your circumstances.
What Is Adverse Credit?
Adverse credit is a term used to describe negative marks recorded on your credit file. Specialist lenders may consider applications where mainstream lenders have declined.
What Does It Include?
Adverse credit can include late or missed payments, defaults, County Court Judgments (CCJs), debt management plans, IVAs, bankruptcy, repossession or recent payday loan use.
How Does It Affect Your Mortgage?
The mortgage or secured loan itself can work in a similar way to a standard product. The key differences may include a higher rate, a larger deposit and more detailed manual underwriting.
Adverse Credit Can Vary in Severity
Lenders assess the type, severity and recency of credit issues when considering which products may be suitable.
Minor
Late payments and high card utilisation may fall into this category and can potentially attract rates closer to mainstream products.
Moderate
Settled defaults and satisfied CCJs that are more than two years old may require specialist lending options.
Heavy
Recent unsatisfied CCJs, current arrears or live IVAs can significantly reduce lender choice and increase pricing.
Who May Need Adverse Credit Finance?
Specialist mortgage solutions can be considered for borrowers whose financial history doesn't fit traditional high-street lending criteria.
Declined Mortgage Applicants
Borrowers who have been declined by a high-street bank because of their credit history.
Self-Employed Borrowers
Self-employed applicants with a more complicated or inconsistent financial history.
Landlords & Developers
Property investors who need specialist finance because of previous credit issues.
Financial Setbacks
Borrowers rebuilding after circumstances such as business failure, illness, divorce or redundancy.
What Could Adverse Credit Finance Cost?
Pricing depends heavily on the severity and recency of your credit history, the type of borrowing and the lender involved.
Mortgages
Rate premiums can vary depending on the severity of the adverse credit, with deposits commonly ranging from around 10% to 25% or more depending on circumstances.
Secured Loans
Specialist secured lending may carry higher rates than prime products, with the exact cost depending on the applicant and property.
Unsecured & Business Lending
Unsecured consumer and business finance can be considerably more expensive where adverse credit is involved.
Bridging Finance
Bridging finance can sometimes be more flexible because lending is primarily asset-led, although rates and fees still vary between lenders.
Not Sure Where You Stand?
Your credit history doesn't tell the whole story. Speak with our team about your circumstances and we'll help you understand what options may be available.
How Does the Process Work?
A specialist application generally involves a more detailed assessment of your credit history and financial circumstances.
Check Your Credit Files
Review your Experian, Equifax and TransUnion files and identify any errors or outdated information.
Understand Your Adverse Credit
Identify the type, date, amount and settlement status of each credit issue.
Improve Where Possible
Settling outstanding issues where possible may help widen the range of lenders available to you.
Speak to a Specialist Broker
A whole-market specialist can help identify lenders that may consider your particular circumstances.
Agreement in Principle
Your circumstances can be assessed before proceeding to a full mortgage application.
Valuation & Completion
The lender completes its underwriting and valuation before moving towards the formal offer and completion.
Adverse Credit Can Be a Timing Issue Too
Most credit marks drop off your file after six years, while maintaining clean financial conduct can gradually improve the range of products available. If borrowing isn't urgent, waiting and refinancing later may sometimes be more cost effective.
Let's Explore Your Mortgage Options
Whether you have defaults, CCJs, missed payments or another form of adverse credit, our team can help you understand your potential mortgage options and the next steps.