Compare adverse credit mortgage deals from specialist lenders

How do I get an adverse credit mortgage?

Getting a mortgage with adverse credit takes more preparation than a standard application, but thousands of people successfully do it every year. Follow these steps to give yourself the best chance of approval at a competitive rate.

1. Check your credit report: Download your full credit report from Experian, Equifax or TransUnion. Look for errors, outdated information or accounts you do not recognise. Correcting mistakes before you apply can improve your chances significantly and may even change which lender category you fall into.
2. Speak to a specialist broker: A broker experienced in adverse credit applications knows which lenders accept your specific credit history. They can save you time and prevent rejected applications that would damage your credit score further. Many specialist lenders only work through brokers, so this step opens doors you cannot access alone.
3. Gather your documents: Prepare proof of income, three to six months of bank statements, photo ID and any paperwork relating to your adverse credit. Lenders will want to understand what happened, how your financial situation has changed since and whether the debts have been satisfied.
4. Get a decision in principle: Your broker can arrange a soft credit check with suitable lenders to confirm how much you could borrow. This gives you confidence before making offers on a property without leaving a hard search on your credit file.
5. Submit your full application: Once you have found a property, your broker submits a full mortgage application to the lender best suited to your circumstances. They handle any queries from the underwriter and chase the process through to completion on your behalf.

What kind of adverse credit mortgage do I need?

The right mortgage depends on the type of adverse credit on your file, when it happened and whether it has been settled. Each situation requires a different approach, and some lenders specialise in particular credit issues. Understanding where you stand helps your broker find the best match.

If you have a CCJ on your credit file

County Court Judgments stay on your credit file for six years from the date of the judgment. If your CCJ has been satisfied and is more than two years old, you will have access to a wider range of lenders and better rates. Unsatisfied CCJs or those under 12 months old significantly limit your options, but specialist lenders can still consider your application based on the full circumstances. Read our guide to getting a mortgage with a CCJ.

If you have defaults on your credit file

Defaults remain on your credit file for six years from the date they were registered. The number of defaults, their total value and whether they have been satisfied all affect which lenders will consider you. A single satisfied default over two years old is far easier to work with than multiple recent unsatisfied defaults. Find out more about mortgages with defaults.

If you have been made bankrupt

Bankruptcy is one of the most serious forms of adverse credit, but it does not permanently prevent you from getting a mortgage. Most lenders require at least three years since your discharge date, and some insist on six years. You will typically need a larger deposit of 20% to 25% and should expect higher interest rates in the early years. Learn about getting a mortgage after bankruptcy.

If you have missed payments on loans or credit cards

Missed payments are among the most common types of adverse credit. One or two missed payments from several years ago may not significantly affect your mortgage application with the right lender. However, a pattern of recent missed payments suggests ongoing financial difficulty, which lenders take more seriously. A specialist broker can identify lenders with the most flexible criteria for missed payment histories. Read about mortgages with missed payments.

If you are in an IVA or debt management plan

Individual Voluntary Arrangements and Debt Management Plans show that you have taken steps to manage your debt, which some lenders view positively. Getting a mortgage while an IVA is still active is difficult but not impossible with the right lender and your Insolvency Practitioner's written permission. Most brokers recommend waiting until your IVA has been completed and discharged before applying, as your options improve significantly at that point. Explore mortgage options during or after an IVA.

If you want to improve your credit score first

Sometimes the best decision is to wait and strengthen your credit profile before applying. Even six months of consistent payments, registering on the electoral roll, reducing credit card balances and correcting report errors can open up better mortgage deals and lower rates. Get tips on improving your credit score for a mortgage.

What types of adverse credit mortgage are there?

Adverse credit mortgages are not a single product. Different lenders package their deals in different ways, and the right choice depends on your credit history, deposit size and how much certainty you want over your monthly payments.

What fees might I have to pay for an adverse credit mortgage?

Adverse credit mortgages typically cost more than standard products, both in interest rates and upfront fees. Understanding these costs before you apply helps you budget accurately and compare the true cost of different deals rather than focusing solely on the headline rate.

How much can I borrow with adverse credit?

The amount you can borrow with adverse credit depends on several factors. Lenders weigh each one differently, so the maximum you can borrow varies significantly between providers. A specialist broker can search across multiple lenders to find the highest amount available for your specific situation.

• Your income and employment status: Most adverse credit lenders use an income multiple of 3x to 4.5x your annual salary. Self-employed applicants typically need at least two years of accounts or SA302 tax calculations. Some specialist lenders accept one year of accounts for certain professions.
• Your deposit size: A larger deposit reduces the lender's risk and can increase the amount they are willing to lend. With 25% or more, you access the widest range of adverse credit lenders and the most competitive rates. Below 15%, your options become very limited.
• Type and severity of your adverse credit: A single satisfied default from four years ago is treated very differently from an active IVA with recent missed payments. Lenders categorise adverse credit by type, amount, recency and whether it has been resolved.
• Time since the adverse credit event: Most adverse credit stays on your file for six years. The further you are from the event, the more you can typically borrow. Lenders often have specific thresholds at 12 months, two years, three years and six years that trigger better terms.
• Outstanding debts and commitments: Your existing credit card balances, loan payments, child maintenance and other regular commitments reduce the amount lenders will offer. Paying down debts before applying can meaningfully increase your maximum borrowing.
• The property type and condition: Non-standard construction, ex-local authority properties or homes above commercial premises may reduce the maximum loan-to-value ratio a lender will offer. Some adverse credit lenders restrict certain property types entirely.

What are the best tips to get a better adverse credit mortgage deal?

The difference between a good and bad adverse credit mortgage can amount to tens of thousands of pounds over the full term. These practical steps can help you secure a better rate, lower fees or both.

1. Wait until your adverse credit ages: Lenders treat older adverse credit far more favourably than recent issues. If your CCJ or default is four years old, waiting another 12 months could move you into a lower-risk category with significantly better rates. Each year that passes without new issues works in your favour, with the biggest improvements often coming at the two, three and six year marks.
2. Save the largest deposit you can: Moving from a 10% deposit to 15% opens up more lenders. Getting to 25% unlocks the most competitive adverse credit rates available. Even small increases in your deposit can reduce your interest rate by 0.25% to 0.5%, which adds up to thousands of pounds over a typical mortgage term.
3. Use a specialist adverse credit broker: High street banks reject most adverse credit applications without consideration. A specialist broker knows exactly which lenders accept your type of credit history and can present your case in the strongest possible way. This avoids wasted applications that leave further hard search marks on your credit file.
4. Check your credit report for errors before applying: Around one in four credit reports contains an error of some kind. Incorrect addresses, accounts that are not yours, or defaults that should have been removed can all drag your score down unnecessarily. Dispute any inaccuracies with the credit reference agency and wait for corrections before submitting your mortgage application.
5. Avoid applying to multiple lenders directly: Each full mortgage application leaves a hard search on your credit file. Multiple hard searches in a short period signal financial distress to other lenders and can reduce your score. Let your broker use soft searches and eligibility checkers to identify the right lender before making a single, well-targeted full application.

How does an adverse credit mortgage work?

An adverse credit mortgage works in the same fundamental way as any other mortgage. You borrow money to buy a property and repay it with interest over an agreed term. The key differences are in who lends to you, how much they charge and how they assess your application.

Credit assessment through manual underwriting: Instead of relying solely on automated credit scoring, specialist adverse credit lenders often use manual underwriting. A real person reviews your application, considers the circumstances behind your credit issues and makes a decision based on the full picture rather than just a number. This means you can explain what happened and demonstrate that your situation has improved.

Risk-based pricing: Your interest rate reflects the level of risk the lender takes on. More recent or severe adverse credit results in higher rates. As your credit history improves over time, you can remortgage to a cheaper deal. Many borrowers start on a higher rate and move to a near-standard mortgage within two to five years as their adverse credit ages.

Larger deposit requirements: Adverse credit lenders typically require a bigger deposit than mainstream lenders. Where a standard borrower might need 5% to 10%, you may need 15% to 25% depending on the severity of your credit issues. The higher deposit gives the lender more security against falls in property value and reduces their exposure.

Specialist lender access: Many adverse credit mortgages come from specialist or challenger banks that do not appear on comparison websites. These lenders are often only accessible through mortgage brokers, which is why working with a specialist broker is particularly important for adverse credit borrowers who want access to the full range of available deals.

Deal periods and remortgaging: Most adverse credit mortgage deals last two to three years. At the end of your deal period, you move onto the lender's standard variable rate, which is usually significantly higher. Planning to remortgage before your deal ends is essential and can save you a substantial amount, especially if your credit profile has improved during the initial deal period.