A mortgage after credit problems.
A default, CCJ or missed payment does not automatically mean no. Lenders will look at what happened, when it happened, how much was involved and whether it has since been resolved. We’ll check the criteria before applying and explain which options may be realistic.
- Defaults, CCJs, arrears and previous bankruptcies considered
- No credit search for your initial conversation
- High street and specialist lenders explored
Your home may be repossessed if you do not keep up repayments on your mortgage.
Before you apply.
Speaking to us does not involve a credit search. Checking your own credit report through a credit reference agency also does not affect your credit score.
Many Agreements in Principle use a soft credit search, although some lenders use a hard search. A full mortgage application will normally involve a hard search.
A declined decision is not recorded on your credit report, but any hard search is. Several applications within a short period can affect your credit score and may concern another lender.
We review your credit history and the lender’s criteria first, explain what type of search is expected and only recommend applying where the case appears to fit.
Check first. Apply carefully.
What lenders actually assess.
Lenders do not simply ask whether you have bad credit. They look at the detail:
- What happened. A missed mobile phone payment is very different from mortgage arrears or a repossession.
- How much was involved. Some lenders disregard small communication defaults or low-value credit issues, but the thresholds vary.
- When it happened. Recent problems carry more weight. Many defaults and CCJs remain visible for six years, but being on your report does not automatically make them unacceptable.
- Whether it has been resolved. Settling a default or satisfying a CCJ can improve your options, although some lenders will consider outstanding credit issues.
- What has happened since. Clean payment conduct, lower borrowing and stable finances can all strengthen the application.
What we may be able to work with.
Depending on your deposit, income and overall circumstances, options may be available for:
- Missed or late payments. The lender will consider how recent they were, what account they related to and whether they formed a pattern.
- Defaults and CCJs. Recent, older, satisfied and even some outstanding entries can be considered by different lenders.
- Debt management plans. Some lenders accept completed plans, while others will consider one that is still active and being maintained.
- IVAs, DROs and bankruptcy. The available lenders will depend on when the arrangement was completed or discharged. Waiting longer usually opens more options, but you may not need to wait six years.
- Previous repossession. This is among the more difficult scenarios, but it does not automatically prevent you from getting another mortgage.
- Payday loans. Some lenders require a clear period since the most recent payday loan, while others may consider more recent use. The frequency, amount and whether anything remains outstanding can all matter.
What it may cost.
Adverse credit does not always mean paying a higher rate or providing a larger deposit. Minor or older issues may still fit a high-street lender’s standard criteria.
More recent or serious problems are more likely to require a specialist lender, which can mean a higher interest rate, a larger deposit or both. We show you the full cost before recommending anything.
Your credit history isn’t the whole story
Missed payments, defaults or CCJs don’t always mean a mortgage is out of reach. We’ll look at the details and timing, then explain which options may be realistic for you. Your first conversation is free, with no pressure to proceed.
Call 01225 258900Questions
Your questions regarding credit, answered.
Can I get a mortgage with a default or a CCJ?
Very often, yes. Lenders will consider what the credit issue related to, how much was involved, when it was registered, whether it has been satisfied and what your payment history has looked like since.
Older or lower-value issues may fit some high-street lenders, while more recent or serious problems may require a specialist lender.
Will talking to you affect my credit score?
No. Your initial conversation with us does not involve a credit search.
If we recommend obtaining an Agreement in Principle, we will explain whether the lender is expected to use a soft or hard credit search before proceeding.
How long does adverse credit stay on my file?
Defaults and CCJs will usually remain visible for six years from the date they were registered. Paying a default does not remove it, but it should be updated to show that it has been satisfied.
Being visible on your report does not automatically make an issue unacceptable. Each lender applies its own rules concerning the type, amount, age and current status.
Will I pay a higher rate?
Not necessarily. Minor or older credit issues may still fit a high-street lender’s normal criteria.
More recent or serious problems may require a specialist mortgage, which can involve a higher rate, larger deposit or additional fees. We will compare the overall cost and explain the available options before making a recommendation.
Can I get a mortgage while in a debt management plan?
Some lenders consider applicants with an active Debt Management Plan where it has been maintained satisfactorily and remains affordable. Other lenders require the plan to have been completed for a minimum period.
The payments will normally be included within the affordability assessment.
Ready when you are.
Whether you’re arranging a mortgage or protecting what matters, tell us what you need and we’ll explain your options clearly. Your first conversation is free and there’s no obligation.
