Adverse Credit Mortgages

What is Adverse Credit?

Adverse credit is a commonly used phrase when describing events on a person’s credit history such as late or missed payments, defaults, CCJs, debt management plans, bankruptcy orders.  Another such term used is bad credit. Typically those with a history of adverse credit will find it more difficult to arrange a loan including mortgages and will likely find the rate charged to be higher than that offered to a borrower with a clean or good credit history.

Adverse Credit Mortgages

An adverse credit mortgage is a term used in the industry to describe a home loan offered by specialist lenders who arrange loans for people who are looking to own their own home but have a history of bad credit, or perhaps are being discriminated against due to a single severe adverse credit event. These applicants will typically have been declined by mainstream high street lenders, who prefer to only deal with people with clean credit records.

As every adverse credit lender has their own individual criteria for lending and methods to assess applicants, the nature and the level of adverse credit will determine which lenders are available to you and in turn the interest rates applicable. Other contributing factors such as the type of mortgage and the loan to value (commonly referred to as LTV) ratio – the amount you want to borrow in relation to the value of the property – can also determine the options on offer.

Due to the complexity of these products, and the fact that most specialist lenders chose to only accept applicants via a trusted intermediary, many applicants look to use the services of a specialist adverse credit mortgage broker to obtain their mortgage. This kind of broker will have access to a broad range of lenders and products, will be able to use their knowledge to help secure the right mortgage and, for those perhaps unable to proceed at the time, assist in putting a plan together to improve their chances for the future.

Would you like help with putting together your adverse credit mortgage application? Get in touch with our team today.


To get a mortgage with bad credit on your records, you’ll need to find a lender who is willing to accept your application and offer the kind of mortgage to suit your individual circumstances. Unfortunately, depending on the nature of the adverse credit and the amount of time that has passed since it was registered, your options for a lender will be restricted.

However, you can decide to be more proactive to help broaden the avenues open to you. The best way to get a mortgage with adverse credit is to take measures to improve your credit score and show that you are now a responsible borrower, no matter what your problems were in the past. Here are a few common methods for doing this:

  • Close any unused credit accounts that you no longer use – like store cards or credit cards you may have kept ‘just in case’. Keeping them open implies that you are never sure about your finances and don’t plan properly.
  • Check your own credit records for inaccuracies – you’ll need to contact the three main credit agencies (Equifax, Experian and TransUnion) who are duty bound to send you copies of your report. There used to be a charge for this when it was done by letter only, but now it’s all online and free.
  • Settle as many outstanding debts as you can – or maybe consolidate them into a single more manageable loan.
  • Take out a credit card and use it for day-to-day spending – but you MUST pay off the balance on time and in full every month to show you are a reliable borrower.
  • Open a savings account and put in a small amount each month. Every little bit counts.
  • If you have not already done so, register on the electoral roll. This gives more credit to your ID.

The next-best way to get a mortgage with adverse credit is to talk to a specialist mortgage broker – we can take a thorough look at your situation and give you honest, unbiased advice regarding your options going forward. Just give us a call today.

Can I get a mortgage with adverse credit?

Having adverse credit events on your credit history – such as late or missed payments, defaults, CCJs, IVAs, Debt Management Plans or bankruptcy – can make you feel that getting a mortgage will be an uphill struggle, at best. However, while trying standard routes to getting a mortgage may prove difficult, we have seen that obtaining a mortgage with adverse credit is certainly a possibility, and can perhaps be a less onerous process than you’d expect.

Many high street lenders will veer away from applicants with a history of adverse credit, and only possibly consider those with mild adverse events that can be easily understood and discounted. This will on the surface make your search for a mortgage look tricky, but you will probably be happy to know that there are a range of specialist lenders available who are specifically geared-up to assist those with all kinds of credit issues recorded on their files.

As with any bad credit issues when applying for an adverse credit mortgage, much will depend on the specifics of the adverse event or items when taken together with the applicant’s overall circumstances. A few missed payments three years ago will have far less impact than a repossessed property within the last year, and a specialist lender will also take into account mitigating factors (such as aspects beyond your control, like redundancy or sudden illness) as well as your borrowing patterns and financial conduct since the event occurred.

So, all hope is not lost. To find out what your options for an adverse credit mortgage could be, whatever your current circumstances or adverse credit events on your file, get in touch with our team today.


Unfortunately, it is not possible to provide a list of the best interest rates for mortgages for those with adverse credit issues, and Interest Rates for Mortgages vary greatly from lender to lender and can change rapidly over short periods of time. Specialist lenders catering to those with adverse credit also do not tend to publish their rates to the general public – often offering a bespoke deal according to your circumstances, as every case is considered individually – and you will not find them listed on any ‘best buy’ tables.

What we can say is, the interest rate you are offered will depend largely on the precise nature of the adverse credit issue (whether a default, IVA, or something more severe like a bankruptcy), when it occurred (the longer ago the better) and the specific amounts involved (whether still outstanding or not). Every detail can make a difference, especially the reasons behind your adverse credit event, and what you might have done since to rebuild your credit score.

Many specialist lenders will look at mortgage applications with a variety of credit Issues, although the rates are likely to be higher than ‘high street’ rates. However, given more time since your adverse credit event, if you have kept a clean sheet otherwise and taken steps to repair your credit rating, interest rates are likely to return to a competitive level.

A detailed discussion with one of our specialist brokers, in conjunction with a review of your credit file, will determine where your problems really lie, how we can frame your application, which mortgage lenders may be happy to lend to you, and what rates will be available. To find out your options, get in touch today.


Having adverse credit items on your files is likely to mean that you will need to deal with a specialist mortgage lender if you want to secure a home loan to buy a property. These ‘adverse credit’ or ‘bad credit’ mortgage lenders are providers who specialise in products and deals designed to help those with a history of adverse credit registered against them to finally get a foot on the property ladder, or to not slip off it due to their financial difficulties.

Mainstream lenders tend to shy away from any applicants with anything more than the mildest of adverse credit events still showing on their file, which will usually preclude anyone with a bad credit issue during the last six years from applying for a mortgage with a high street lender. However, specialist lenders understand that people can find themselves with a poor credit history for a variety of reasons, sometimes beyond their control – for example, financial difficulties can be caused by a sudden illness or redundancy. This should not necessarily mean they are not able to obtain a mortgage.

A specialist adverse credit mortgages lender takes a more pragmatic approach than their mainstream cousins, and their criteria are more aligned to applicants with this particular need. They will take an applicant’s wider circumstances into account, gauging how you may have improved your situation since the bad credit occured, how you are managing your finances now, how long ago the events happened and the steps you have taken to repair your credit record since.

Having an expert mortgage broker on your side when looking for this type of mortgage can also be greatly to your advantage. At IMC Mortgage Brokers, we’ve helped applicants with all kinds of bad credit records to find a mortgage and secure the property they need. Give us a call today to find out your options.

Adverse credit mortgage lenders

Adverse credit mortgage lenders is the collective term used to describe a certain type of mortgage provider who specialises in assisting those with a history of adverse credit events registered on their files, which is impacting their ability to obtain a mortgage from the traditional high lenders. The mortgage market today has evolved out of the banking crisis in 2008, when mainstream lenders lost large sums of money, the market became far more regulated and lenders in general became far more risk-averse than they once were.

This meant that potential borrowers who did not fit into the narrow conventions high street lenders liked to see in order to be prepared to extend a loan or mortgage – especially those with bad credit on their records – were effectively shut out of sources of finance. This left many people who were physically able to afford loans and repayments unable to obtain a mortgage and buy a property of their own instead of paying rent. In response, many new lenders have since stepped up to fill this gap in the market and cater to this sector of the population.

People can find their credit file affected by bad credit for a variety of reasons, not all of them their own fault – for example, people can experience unexpected redundancy or an illness that can lead to a lack of income and result in financial problems. However, situations usually change with time, and this does not necessarily mean they will not be able to obtain and maintain a mortgage in their current circumstances.

Depending on the severity of the adverse events, the amount of time they lasted and how long ago they occurred, a mainstream lender may not be able or willing to assist you with a loan – their systems are designed to only cater to those with clean credit files, or the mildest of problems. A specialist mortgage lender’s criteria will be more aligned to the needs of those with adverse credit on their files, and can therefore take a more pragmatic approach to your application, considering your whole circumstances in context.

Having an expert mortgage broker can be advantageous when looking for this type of mortgage. Our team at IMC Mortgage Brokers have access to a wide range of specialist lenders who do not advertise publicly and who you will not find on the high street, but who can cater to your requirements if you have adverse credit events on your record. To find out about how to apply for a loan with these lenders, and the kind of deal you can expect, please get in touch today to arrange a free, no-obligation initial consultation.


It’s complicated enough to apply for a conventional mortgage at the best of times, but if you are applying for a mortgage with adverse credit on your record, the process, the products and the criteria involved can be even more complex. So you could be forgiven for wondering from the outset – what adverse credit is acceptable on a mortgage application?

The answer, as ever in these circumstances, is the dreaded ‘it depends’. As specialist mortgage brokers, we get to deal with a wide variety of lenders and products – from the high street banks to the most niche-market specialists helping clients only in certain situations. The type of adverse credit issues that lenders find acceptable for a mortgage varies from one lender to the next – what one may consider to be a huge red flag that rules out the application, another will understand its meaning in a wider context, and will still be willing to lend.

As you probably already know, whatever the nature of the adverse credit on your files, time is on your side. Your credit record will cover the last six years, giving you time to show a period of responsible borrowing, and anything older than that will simply slip off. This said, it’s likely that you will still be asked if you have suffered from any of the more severe adverse credit events at any time in your past – like bankruptcy or repossession, for example – and you must respond honestly in this situation (if you are found to be lying, then that is a sure way to scupper your application).

The final answer is that any type of adverse credit can be acceptable for a mortgage application. We have seen people with all kinds of bad credit issues achieve success. But you will need to talk to a lender who understands your whole circumstances, and may need to accept some more stringent terms in order to get the mortgage you need.


To find a mortgage broker who specialises in adverse credit mortgages, you will need to look beyond the mainstream lenders or companies with ties to high street banks or a specific portfolio of products, and look instead for a broker with access to a wide range of mortgage products who can give you impartial advice and help you find the right mortgage to suit your needs.

Searching for adverse credit mortgages can be particularly frustrating. Even the smallest credit penalty can exclude you from a large number of high street lenders, as they tend to rely purely on computerised credit checks, use quite narrow criteria for their applications and are generally only willing to lend to people with the cleanest of credit records.

If you have one or more adverse credit events on your portfolio, then to get access to the kind of lenders who will be willing to consider your application, you will need to talk to a specialist adverse credit mortgages broker, such as ourselves at IMC Mortgage Brokers. Thanks to our knowledge and relationships across the industry, we have access to a wide range of both high street and specialist lenders who are more sympathetic to a client’s situation – who understand that adverse credit issues can happen for a variety of reasons, and that people may have taken steps to bring their finances onto a firm footing and be in a far more positive position now than they were at the time the adverse credit event happened.

And, because we are Bad Credit Experts, we have in-depth expertise in all kinds of lenders’ products, rates, assessment methods and application criteria, in order to give you the best possible chance of achieving the mortgage you require – one that will suit your individual circumstances and needs.

Trying to find the right mortgage by yourself can take days of comparisons and uncertainty. Let us do the hard work for you!

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