Bad Credit Mortgage Advice
A clear, individual review of your credit history, circumstances and possible next steps.
Discuss your circumstancesMortgage guidance
A mortgage enquiry starts with the full picture
A missed payment, default, County Court Judgment, debt arrangement or previous insolvency can affect a mortgage application, but it does not tell the whole story. Lenders have different criteria and may look at what happened, when it happened, the amount involved, whether it has been resolved and how your finances have been managed since.
Anderson Reed Financial Services can review the information with you, explain the factors that may matter and consider whether a mortgage enquiry is realistic now or whether waiting and preparing would be more appropriate. We cannot guarantee that a mortgage will be available, but we can help you approach the next step with a clearer understanding of your position.
Your circumstances
Can I get a mortgage with bad credit?
It may be possible, depending on the full circumstances and the lender's current criteria. “Bad credit” is not one single category: one historic missed payment can be viewed differently from recent arrears, an unsatisfied judgment or an active debt solution.
A lender must also be satisfied with affordability, income, outgoings, deposit, property and the rest of the application. A higher credit score alone does not guarantee acceptance, and a low score shown by a credit-reference service does not provide a complete mortgage decision. Each lender uses its own information, policies and assessment.
It can be helpful to understand the position before making repeated applications. An initial discussion can establish which dates, amounts and documents need to be checked and whether proceeding now appears appropriate.
A complete assessment
What lenders may consider
The details that matter can vary, but a mortgage lender may consider:
- The type of issue. Missed or late payments, defaults, arrears, judgments and formal debt solutions can be assessed differently.
- When it happened. Recent events may be viewed differently from older events, but there is no single waiting period shared by all lenders.
- The amount and frequency. One small event may be assessed differently from repeated or substantial commitments.
- Whether it has been resolved. A lender may ask whether a debt is outstanding, settled, satisfied, completed or discharged and on what date.
- Recent financial conduct. Current commitments and how accounts have been maintained may form part of the assessment.
- The deposit and loan-to-value. The amount of deposit can affect the available options, but no universal adverse-credit minimum should be quoted.
- Income and affordability. The lender will consider income, regular expenditure, debts and other commitments under its affordability rules.
- The property and purpose. Residential, remortgage and buy-to-let applications can follow different criteria, as can unusual properties.
- The wider application. Address history, electoral-register information, joint applicants and financial associations can all be relevant.
Do not interpret this list as a scoring formula. A suitable lender assesses the complete application under its current criteria.
Accurate information
Check and understand your credit information
Before a detailed mortgage enquiry, obtain up-to-date information and check that names, addresses, accounts, balances, dates and status markers are accurate. The three main UK credit-reference agencies may hold different information, so one consumer-facing score or report may not show everything relevant to a lender.
If information appears wrong, raise it with the organisation that supplied it and the relevant credit-reference agency. Keep evidence of payments, settlement, satisfaction, completion or discharge where applicable. A notice of correction may be available in some circumstances, but it should be accurate and considered carefully; it is not a method of removing correct information.
Do not pay a third party to “clean” accurate information from a credit file, and do not dispute correct entries simply to improve an application. Anderson Reed Financial Services provides mortgage advice, not credit-repair, legal, insolvency or debt advice.
The company we recommend, Check My File, combines data from all three CRAs into one comprehensive credit report. You can access your Check My File credit report using the following link (www.checkmyfile.com), but you do not need to use a particular provider before speaking with us.
Ask what information to prepareDifferent circumstances
Credit circumstances are not all the same
Missed payments and arrears
A lender may consider the type of account, number of missed payments, amount, date and whether the account is now up to date. Mortgage or secured-loan arrears can be assessed differently from an isolated late payment on another account.
Defaults
The date, value, current balance and whether a default has been settled may all matter. A settled default can still remain visible for a period, so settlement should not be described as automatically removing the record or guaranteeing eligibility.
County Court Judgments and Scottish decrees
Judgments can affect access to credit. In England and Wales, payment within one month can allow a CCJ to be removed from the public register; later payment can allow it to be marked as satisfied. Scotland uses different terminology and procedures for decrees. Mortgage criteria may consider the judgment's date, amount and status.
Debt management plans
A debt management plan may be formal or informal and does not by itself provide a universal mortgage answer. A lender may consider whether it is active or completed, the underlying debts, payment history, affordability and the time since completion. Anyone considering changing or leaving a debt plan should speak to an appropriately qualified debt adviser rather than doing so for a mortgage application.
Individual Voluntary Arrangements
An IVA is a formal debt solution. Completion, termination and settlement are not interchangeable, and lenders may apply different criteria according to the dates and circumstances. Read our focused mortgages after an IVA guidance.
Bankruptcy and sequestration
Bankruptcy in England and Wales and sequestration in Scotland have different rules and terminology. Discharge does not itself guarantee mortgage eligibility, and the public insolvency record, credit file and lender policy are separate considerations. Read our focused mortgages after bankruptcy guidance.
Debt Relief Orders
A DRO is a formal insolvency solution in England and Wales. A lender may consider whether the DRO is current or ended, the relevant dates, the debts involved and subsequent financial conduct. Mortgage information should not be presented as advice about entering, ending or changing a DRO.
Limited credit history, financial associations and identity issues
Some enquiries concern limited credit information rather than missed payments. A lender may also see relevant information connected with a joint application or financial association. If an account or search may result from identity theft or fraud, address that with the organisation, credit-reference agency and appropriate authorities before treating it as ordinary adverse credit.
The overall cost
Deposit, rates and affordability
Previous credit issues can affect which lenders or products are available and the rate or fees offered. The actual rate depends on the complete circumstances and the product available at the time. Some applicants may need more deposit than would be required under other circumstances, but there is no one percentage that applies to every type of issue or lender.
A larger deposit does not override affordability or lender criteria. Budget for purchase costs and an emergency reserve rather than committing every available pound to the deposit. If an option is available, compare the rate, lender fees, advice fee, early repayment charges and total cost—not only the initial monthly payment.
Do not assume a later remortgage to a lower rate will be possible. Future eligibility, property value, income, affordability, rates and lender criteria cannot be guaranteed.
The actual rate available will depend upon your circumstances. Ask for a personalised illustration.
A considered next step
What if a mortgage application has already been declined?
A decline from one lender does not explain how every lender would respond, but it is sensible to understand the reason before applying elsewhere. Check whether the issue relates to credit information, affordability, documentation, property criteria, identity checks or something else.
Avoid making a rapid series of applications simply to see which one succeeds. Searches and declined applications may need to be explained, and another application should be based on a considered review rather than guesswork. Do not conceal a previous decline or change information between applications to obtain a different result.
Prepare carefully
Preparing a considered mortgage enquiry
Gathering accurate information at the outset can make the discussion more useful. Depending on the circumstances, this may include:
- current credit information and the source/date of each report;
- a list of previous addresses and the dates you lived there;
- dates, values and current status of relevant missed payments, defaults, arrears or judgments;
- completion, discharge or satisfaction evidence where applicable;
- details of current debts, credit limits, monthly commitments and any payment arrangements;
- income evidence and a realistic record of regular household expenditure;
- deposit amount and evidence of where it comes from;
- information about the proposed property and whether the enquiry is for a purchase, remortgage or buy-to-let; and
- a short factual explanation of relevant circumstances where helpful.
Only provide personal documents through the secure process confirmed by Anderson Reed Financial Services. Do not email or submit a full credit report through a general marketing form. Read our Privacy Statement for more information.
Important consideration
Debt consolidation and a mortgage or remortgage
Consolidating debts into a mortgage or remortgage requires an individual assessment and may not be suitable. Securing unsecured debts against a home can put the property at risk and may increase the total amount repaid if the borrowing is extended over a longer term.
Working with Anderson Reed Financial Services
How Anderson Reed Financial Services can help
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Listen to the background.
We discuss the mortgage aim and the credit concerns without making an instant promise or judgment.
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Establish the relevant facts.
We identify the dates, amounts, status and documents needed for a meaningful assessment.
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Consider affordability and lender criteria.
Credit history is reviewed alongside income, commitments, deposit, property and mortgage purpose.
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Explain the realistic next step.
This may be preparing an application, gathering further information or waiting until the position changes.
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Support an appropriate application.
If proceeding is suitable, we explain the product, costs, documents and lender questions and remain available through the process.
Common questions
Frequently asked questions
Will one missed payment stop me getting a mortgage?
Not necessarily. The lender may consider the account type, date, amount, reason, whether it was isolated and how accounts have been managed since. It should be disclosed accurately rather than assumed to be irrelevant.
Can I get a mortgage with a CCJ?
It may be possible depending on the judgment's date, amount, status, wider credit history and lender criteria. In England and Wales, paying within one month and paying later have different effects on the public register. Check that the record is accurate and obtain evidence of cancellation or satisfaction where applicable.
Can I get a mortgage during or after a debt management plan?
Criteria vary. A lender may consider whether the plan is active or completed, the underlying debts, payment record, affordability and time elapsed. Do not alter a debt arrangement solely to pursue a mortgage without qualified debt advice.
Can I apply while I am bankrupt?
Bankruptcy involves legal restrictions and lender criteria that make this materially different from an ordinary mortgage enquiry. Do not provide a simple “yes” or universal waiting period. The focused mortgages-after-bankruptcy page should explain discharge and preparation, and anyone needing bankruptcy advice should use an appropriately qualified source.
Can I get a mortgage after an IVA or DRO?
Possibly, but completion or the end of an arrangement does not guarantee acceptance. Relevant dates, current debts, subsequent conduct, affordability, deposit and lender policy may all matter. Use the IVA child page for more detail and treat DRO enquiries individually.
Will I pay a higher mortgage rate because of my credit history?
Previous or current credit issues can affect the lenders and products available, which may affect rates and fees. The actual rate depends on the complete circumstances and available products. Ask for a personalised illustration before making a decision.
Does getting a mortgage repair my credit score?
Do not take a mortgage for the purpose of repairing a score. A mortgage is a long-term secured commitment and suitability and affordability come first. Future credit scores and product availability cannot be promised.
Do I need a particular deposit if I have bad credit?
There is no market-wide adverse-credit deposit figure. The amount required may depend on the issue, how recent it is, the property, affordability and lender criteria. Deposit should be considered alongside fees, purchase costs and a suitable reserve.
Should I obtain my credit information before speaking to an adviser?
Up-to-date information can help establish the relevant dates and account status. Different agencies may hold different information. Check accuracy and keep supporting evidence, but use only Anderson Reed Financial Services' approved secure process to share sensitive documents.
Can I consolidate debts into a mortgage or remortgage?
That requires an individual assessment and may not be suitable. Securing unsecured debts against a home can put the property at risk and may increase the total amount repaid if the borrowing is extended over a longer term. Retain the site's approved debt-consolidation warning wherever this subject appears.
Talk through your mortgage circumstances
Speak with a Mortgage and Protection Advisor about the credit history, deposit, affordability and next step. A conversation does not guarantee that a mortgage will be available.
Mortgage information
The information given in this website does not contain all of the details you need to choose a mortgage. Make sure that you read the separate key facts illustration before you make a decision. The FCA does not regulate some forms of buy to let mortgages.
It is our intention to provide you with a high level of customer service at all times. If there is an occasion when we do not meet these standards and you wish to register a complaint, please write to: Compliance Department, Connect IFA Ltd, 39 Station Lane, Hornchurch, RM12 6JL or call: 01708 676110. If you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service.
Anderson Reed Financial Services Ltd is entered on the Financial Services Register under firm reference number 947349. Registered in England and Wales under number 13190705. Calls may be recorded for training and monitoring.