Adverse credit is a term used to describe a less than perfect credit history. It can include things like missed loan or credit card payments, defaults, or more serious issues such as CCJs or IVAs. These kinds of records can make getting a mortgage more difficult, but not impossible.
At Key Mortgage Advice, we work with clients every day who have some form of adverse credit. Our mortgage brokers in Garstang, Preston, and Southport focus on finding mortgage solutions that match your circumstances, no matter what your credit file looks like.
What Counts As Adverse Credit?
Adverse credit refers to any negative marks on your credit file that could affect your ability to borrow. These marks show lenders that you may have struggled with repayments in the past, which could make them more cautious when reviewing a mortgage application.
Common examples of adverse credit include:
- Missed or late credit card or loan payments
- Defaults on credit agreements
- County court judgements (CCJs)
- Individual voluntary arrangements (IVAs)
- Debt management plans
- Bankruptcy
- Payday loans
Even something like going over your overdraft limit or making minimum payments for a long period of time have an impact, depending on how it shows on your credit report.
While adverse credit can make it harder to get a mortgage, it doesn’t mean you’re out of options. Our mortgage brokers at Key Mortgage Advice understand how lenders view different types of adverse credit and can guide you through the process. Take a look at our reviews and mortgage guides for further information.
Can You Get A Mortgage With Adverse Credit?
Yes, getting a mortgage with adverse credit is possible. While some high street lenders may turn you away, there are others who are more flexible and will take the full picture into account. This is where speaking to an experienced mortgage broker really helps.
At Key Mortgage Advice, we work with clients who have a range of credit histories. Whether your credit issues are recent or go back several years, we’ll help you understand what’s realistic and what lenders are likely to consider.
Our team has a strong working relationship with a wide panel of lenders, including those who are open to applicants with past credit problems.
Your ability to get a mortgage will usually depend on a few key things:
- How severe the credit issues are
- How long ago they happened
- Whether the debs have been settled
- Your current income and affordability
We can advise you on your best options, help prepare your application and increase your chances of approval. You can find out more about our full mortgage services such as first time mortgages, buy to let mortgages and commercial mortgages. Get in touch for a personal chat on 01772 620000 or email us at enquiries@keymortgageadvice.co.uk.
We offer face-to-face and remote appointments across our three branches. If you’re looking for mortgage brokers in Garstang, mortgage brokers in Preston or mortgage brokers in Southport, our teams are here to help.
Tips For Applying For A Mortgage With Adverse Credit
Applying for a mortgage when you have adverse credit can feel challenging. That’s why it’s important to prepare and know what steps can improve your chances.
Start by checking your credit report to see exactly what lenders will see. You can get a free copy from agencies like Experian or Equifax. Look out for any mistakes and get them corrected if needed.
Next, focus on improving your financial profile. Regularly paying bills on time and reducing outstanding debts shows lenders you’re managing your money responsibly.
Be honest with your mortgage broker about your credit history. At Key Mortgage Advice, our brokers will guide you on how to present your application in the best light.
Also, try to save for a larger deposit if possible. A bigger deposit reduces the lender’s risk, which can make them more willing to offer a mortgage despite past credit issues.
Avoid applying for multiple mortgages or loans in a short period, as each application can lower your credit score.
Finally, consider using tools like our mortgage calculator to plan your budget and understand what repayments you can afford.
Can I Still Get A Mortgage With Adverse Credit?
Yes, but it depends on your individual circumstances. A broker can help you find lenders that consider applicants with a poor credit history. Contact us to see what options may be available.
Getting The Right Support With Adverse Credit
Adverse credit doesn’t mean you can’t get a mortgage, but it does mean you need the right advice. At Key Mortgage Advice, our experienced mortgage brokers can help you understand your options and work out what’s possible for your situation.
We also offer a range of mortgage services, including lifetime mortgages and remortgages. You can call us on 01772 620000 or email us at enquiries@keymortgageadvice.co.uk to speak to one of our advisors.
