Worried that your past credit mistakes might stop you from getting a mortgage? You’re not alone. Many people feel unsure about where they stand financially—especially when it comes to applying for a home loan. If you’re asking, what is adverse credit?, this guide is for you.
Adverse credit means you’ve had financial difficulties in the past. That might include missed payments, defaults, or a County Court Judgment (CCJ). While these issues can affect your ability to borrow, they don’t necessarily mean you can’t get a mortgage.
In this blog, we’ll explain:
- What adverse credit really means
- How it shows up on your credit file
- The impact it has on mortgage applications
- Which lenders might still consider you
- Steps to improve your chances of approval
- How The Original Mortgage Company can help you move forward
Let’s break it down and help you feel more confident about your next steps.
What is Adverse Credit?
Adverse credit means you have a history of financial issues on your credit report. These issues show lenders that you’ve had problems managing debt in the past. It doesn’t have to be anything major. In fact, many people have adverse credit without even realising it. A few missed payments or a mobile phone bill that went unpaid can be enough.
Here are some common examples of adverse credit:
- Missed or late payments
- Defaults on loans or credit cards
- County Court Judgments (CCJs)
- Individual Voluntary Agreements (IVAs)
- Bankruptcy or debt relief orders
These marks stay on your credit file for around six years. During this time, lenders can see them when you apply for credit or a mortgage. The more recent the issue, the more it may impact your chances.
Your credit file is kept by agencies like Experian, Equifax, and TransUnion. Each uses your financial history to generate a credit score. This score helps lenders decide how risky it is to lend to you.
The good news? Even with adverse credit, there are still ways forward—especially with the right guidance.
How Adverse Credit Affects Your Mortgage Chances
Adverse credit can make it harder to get a mortgage, but it doesn’t always mean a refusal. It depends on your situation and the lender.
Most banks and high street lenders look for clean credit histories. If you’ve had missed payments or defaults, they may see you as high risk. This could lead to a declined application or stricter terms.
Even if you’re approved, you might face higher mortgage rates. Lenders often charge 2–3% more to borrowers with adverse credit. That’s because they see you as more likely to miss future payments.
Before offering a mortgage, lenders carry out risk and affordability checks. These include:
- Reviewing your credit report
- Checking your income and spending
- Assessing your current debts
- Looking at the size of your deposit
If your credit history raises concerns, some mainstream lenders may say no. But this isn’t the end of the road.
There are specialist mortgage lenders who work with people who have poor credit. These lenders consider the full picture, not just your credit score. If you’ve kept up with recent payments and can prove affordability, you still have options.
Working with a mortgage broker can help match you with the right lender from the start.
Common Types of Adverse Credit
Adverse credit comes in different forms. Some issues are minor and short-lived, while others can have a bigger long-term impact. Here are the most common types of adverse credit that may appear on your file:
- Missed or late payments – These often involve credit cards, utility bills, or phone contracts. Even a single missed payment can leave a mark.
- Defaults – When payments are missed over several months, the lender may record a default. This suggests serious financial difficulty.
- County Court Judgments (CCJs) – These are legal rulings made against you when a debt goes unpaid.
- Debt Management Plans (DMPs) – An informal arrangement to repay debts at an affordable rate, usually with the help of a debt charity.
- Individual Voluntary Agreements (IVAs) – A legally binding agreement to repay part of your debts over time.
- Bankruptcy or Debt Relief Orders – These are more serious forms of debt resolution and will severely affect your credit profile.
Can You Get a Mortgage with Adverse Credit?
Yes, you can still get a mortgage with adverse credit. It might take a bit more planning, and your options may be more limited. But it’s far from impossible.
Most high street banks tend to avoid applicants with poor credit. However, there are specialist mortgage lenders who offer products designed for people with financial history issues. These are often called adverse credit mortgages or bad credit mortgages. They come with different lending criteria and may have higher interest rates, but they are tailored to your situation.
This is where working with a mortgage broker like The Original Mortgage Company can make all the difference. We understand which lenders are open to adverse credit applications and what they’re looking for. We help present your case in the best light.
What Do Lenders Look At?
Each lender has their own criteria, but they usually consider:
- Deposit size – A larger deposit reduces their risk.
- How recent your credit issues are – Older problems carry less weight.
- Your income – Stable, verifiable income helps boost confidence.
- Current financial behaviour – Showing better habits now matters.
We take all of this into account when matching you to the right lender.
When Adverse Credit Won’t Stop You
Not every issue is a deal-breaker. You may still be eligible if:
- You had missed payments over six months ago.
- You have an older CCJ that’s been paid off.
- A default occurred but has since been settled.
These types of cases often succeed, especially with the help of a knowledgeable broker who knows how to explain them clearly to lenders.
When Adverse Credit Might Block a Mortgage
In some situations, it may be harder to get approved, such as if you have:
- A recent CCJ or a large unpaid default.
- An active IVA or bankruptcy on your credit file.
- Ongoing arrears or severe debt problems.
That doesn’t mean all hope is lost. But you may need specialist financial advice or to wait until your situation improves. We can talk through your options and help you decide what steps to take next. Contact us today.
Steps to Improve Your Chances Before Applying
If you’ve had credit problems in the past, there are simple steps you can take to improve your chances of getting a mortgage. These actions help show lenders that you’re managing your finances responsibly now.
1. Check Your Credit File
Start by reviewing your credit reports from TransUnion, Equifax, and Experian. Each agency may hold slightly different information.
Look for:
- Mistakes or outdated records
- Duplicate entries
- Accounts listed as open when they’re closed
Fixing errors can give your credit score a boost and remove potential red flags.
2. Correct Any Errors
If you find incorrect information, raise a dispute with the credit agency. It’s free and usually resolved within 28 days. Lenders will see updated reports if corrections are made in time.
3. Pay Off Small Debts and CCJs
Settling old County Court Judgments (CCJs) or small unpaid debts can strengthen your case. It shows lenders that you’re taking responsibility. Even if the record stays on your file, a “satisfied” mark looks much better.
4. Limit Credit Applications
Every credit application leaves a mark on your file. Making lots of applications in a short time can look desperate to lenders.
Stick to essential credit only and avoid new finance agreements if you’re planning to apply for a mortgage soon.
5. Avoid Taking On New Debt
Don’t open new credit cards or loans just before applying. Lenders want to see that your debt is stable or going down, not rising.
6. Use Credit Responsibly
Show that you can manage credit well. Use existing cards within your limit and always pay at least the minimum on time. Doing this for a few months before you apply can improve your credit score and prove that your finances are back on track.
By taking these steps, you’ll look more reliable to mortgage lenders. It could help unlock better interest rates and more borrowing options. Even with a history of adverse credit.
How Expert Advice from The Original Mortgage Company Helps
At The Original Mortgage Company, we’re trusted local experts who specialise in helping people with adverse credit get on the property ladder.
We understand that every financial situation is different. That’s why we take time to review your full credit history – not just your score. We look at the whole picture, not just the red flags.
Our experienced advisers then match you with the right lenders. We work closely with specialist mortgage lenders who regularly approve mortgages for people with bad credit. These lenders understand real life happens and don’t base decisions solely on past mistakes.
If affordability is a concern, we can also help you explore options to boost your application. This might include:
- Family guarantor support
- Gifted deposit arrangements
- Joint applications with a trusted partner or family member
We also handle all the paperwork and ensure soft credit checks are used where possible, so there’s no impact on your score while we explore your options.
Most importantly, we’ll support you from start to finish. We’re here to explain everything clearly, take the stress out of the process, and make sure you feel in control.
With our help, even those with adverse credit can make their dream of buying a home in Hartlepool or beyond – a reality.
FAQs
Can I get a mortgage with a CCJ?
Yes, it’s possible to get a mortgage with a County Court Judgment (CCJ) on your record. Many specialist mortgage lenders are open to applicants with past credit issues. You’ll usually need to show that the CCJ is older, has been settled, or is for a smaller amount. A larger deposit may also improve your chances.
How long does adverse credit stay on my file?
Most adverse credit events stay on your credit report for six years from the date of the issue. This includes missed payments, defaults, CCJs, IVAs, and even bankruptcies. After this time, they’re automatically removed from your file.
Will getting a mortgage harm my credit score?
Applying for a mortgage can cause a small dip in your credit score, but it won’t harm it long term—especially if you’re approved. Using a broker like The Original Mortgage Company means we often use soft searches, which don’t leave a visible mark on your credit file.
Can I get a 95% mortgage with bad credit?
It’s harder, but not impossible. A few lenders may consider 95% mortgages for those with minor or historic credit issues. However, most will want a larger deposit—often 10–15%—to offset their risk.
What happens if I have multiple missed payments?
Multiple missed payments can reduce your chances of mortgage approval. But it depends on how recent they are, how much was owed, and if they’ve now been paid. Some lenders will overlook older or one-off issues, especially if you’ve shown improved financial behaviour.
We Can Help You
So, what is adverse credit? In simple terms, it’s a record of past financial difficulties—things like missed payments, defaults, CCJs, or IVAs. It can make getting a mortgage harder, but not impossible.
If you have adverse credit, don’t panic. Many homebuyers are in the same position. The key is understanding how lenders assess your risk and how to improve your credit profile.
Here’s what we’ve covered:
- Adverse credit may lead to higher mortgage rates or fewer options, but it doesn’t mean a flat-out no.
- Specialist mortgage lenders exist for this exact reason.
- Improving your credit score and financial habits can make a big difference.
- Using a trusted mortgage broker gives you access to the right lenders and expert guidance.
At The Original Mortgage Company, we specialise in helping buyers with adverse credit. If you’d like tailored support and honest advice, get in touch with our team for a free, no-obligation consultation. We’re here to help you move forward.