Adverse CreditMortgages

Different lenders view credit issues differently. CCJs, defaults, missed payments, IVAs, and bankruptcy all have varying impacts. The severity, amount, and how recent the issues are matter more than the type. Some lenders specialise in specific credit problems—knowing which ones is crucial to getting approved.

Waiting can improve your chances and rates. Most lenders prefer 12+ months since your last missed payment. CCJs and defaults have less impact after 3 years. Discharged bankruptcies may be considered after 3-6 years. However, waiting isn't always necessary—specialist lenders can help sooner with the right circumstances.

Bad credit mortgages typically require larger deposits. Recent minor issues might need 10-15% deposit. Multiple or serious issues often require 20-25% or more. Larger deposits reduce lender risk and can secure better rates. Some specialist lenders accept 10% with the right circumstances.

Expect higher rates than standard mortgages, but they're not permanent. Initial rates might be 1-3% higher than prime lending. Your rate depends on credit issue severity, deposit size, and time elapsed. Many clients remortgage to better rates within 2-3 years after rebuilding credit.

This combination requires specialist knowledge. See our dedicated self-employed bad credit mortgages guide. You'll need strong recent accounts showing consistent income. Larger deposits help offset both risk factors. Some lenders specialise in this exact scenario. We know which lenders are most flexible for self-employed applicants with credit issues.

Register on the electoral roll at your current address. Correct any errors on your credit file. Avoid new credit applications before applying. Pay all current commitments on time. Keep credit utilisation below 30%. Consider adding a guarantor if borderline. Small steps make a significant difference.