Adverse Credit Mortgages

Adverse credit, also known as bad credit, is a term used to describe a less-than-favourable credit history, which can include defaults, County Court Judgments (CCJs), late payments, or bankruptcy instances.

Lenders assess various forms of Adverse credit, including:

• No credit history
• Low credit score
• Late payments
• CCJs
• IVAs
• Debt management plans
• Payday loans
• Bankruptcy

You can easily determine if you have adverse credit by requesting a free credit report from Check My File.

You can sign up for a free trial for 30 days (make sure you cancel during it). This will show your credit history for the last 6 years from Experian, Equifax and Transunion.

A good credit score varies across different credit agencies.

For Experian, scores between 881-960 are considered good, while 961-999 are excellent.

Equifax deems 420-465 as good and 466-700 as excellent.

Your credit score is a numerical rating based on your credit history, which is a record of your borrowing and repayment activities.

Debt-to-income ratio compares your total debt to your income. Many lenders prefer it to be under 50%, as a higher ratio can limit how much you’re able to borrow.

Mortgage lenders may review your credit reports from any credit bureau they share data with, often including Equifax, Experian, and TransUnion.

Yes, through debt consolidation, you can use a mortgage to settle existing debts by raising capital on your remortgage.

Yes, keeping current mortgage payments up to date is crucial. Lenders will assess how mortgage repayments affect your overall finances.

Mortgage eligibility may depend on the time elapsed since the IVA or bankruptcy.

Post-bankruptcy, most lenders require a six-year wait. However, some may consider a shorter time period, you should speak to a mortgage advisor to confirm your situation.

Payday loans can negatively affect your credit score, as they indicate financial instability to lenders, due to their high interest rates.

Credit reports typically include financial information from the past six years.

Lenders usually review the last six years of your credit history, though some may focus more on recent years, considering the last 2-3 years more heavily.

You can enhance your chances of getting a mortgage by registering on the electoral roll, obtaining your credit reports, closing unused accounts, ensuring accuracy on your reports, organising your finances, settling debts, and starting a savings routine.

Adverse credit can result in higher interest rates and the need for a larger deposit, but this depends on the level of adverse credit you have.

You should speak to a mortgage advisor to review your situation and they can recommend the most competitive mortgage for you.

Getting a mortgage with bad credit is possible, but waiting until adverse records drop off your report and improving your credit score is often recommended. Immediate applications may require a larger deposit and come with higher interest rates.

Consult a mortgage advisor and get a credit report to explore all of your options.

You can get a free credit report here: Check My File . Sign up for a free trial for 30 days (make sure you cancel during it). This will show your history for the last 6 years from Experian, Equifax and Transunion. This will give your mortgage advisor the same view that the lenders have which will be needed to know how to help you.