Adverse Credit

Getting a mortgage can seem daunting when you’ve got a bad credit rating; Defaults, County Court Judgments (CCJ), Arrears, Individual Voluntary Arrangements (IVA) or a Bankruptcy on your record – but it’s not impossible.

An adverse credit history can mean a more limited choice of lenders so having the advice of a whole of market independent mortgage adviser will greatly enhance your chances.

What causes adverse credit?

There are a number of factors that contribute to your credit score, some of the most common reasons people have poor credit ratings include:

  • Being late or missing a loan, credit card or mortgage payment
  • A history of using payday loans
  • Going beyond overdraft limits
  • Having a County Court Judgement (CCJ) or Default registered against you
  • Being declared bankrupt or entering into an in individual voluntary arrangement (IVA)
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How to improve your mortgage chances

If you have a poor credit history, there are a number of steps you can take to improve your chances of getting a mortgage.

  • Be honest about your situation. Lenders will conduct their own thorough searches and trying to hide adverse credit will look worse for you in the long-term.
  • Time is a great healer. Many blemishes in your credit history could be seen as less serious over time, especially if your financial situation gets better.
  • Repair your credit history. An established pattern of consistent payments and responsible credit activity can quickly improve your score.
  • Save a larger deposit. A bigger deposit is seen as less risk by lenders meaning it may be easier to pass their credit check.

A good mortgage adviser will be able to ascertain what mortgage deals you are likely to be eligible for and likewise, will advise whether you’re better off waiting. We have strong associations with lenders who are more understanding of adverse credit and we can often get borderline applications agreed where others can’t, so it’s definitely worth talking to us even if you’ve been turned down elsewhere.

Low credit score or lack of credit history?

Furthermore, if you have never borrowed money, you might assume you have a good credit score. However, this is unlikely to be true because when assessing your application, lenders look for evidence that you’ll be able to pay back what you borrow.  Having no history of successful repayments can therefore unfortunately count against you, especially if you have a small deposit.

How do I know if I have adverse credit?

If you are concerned about your credit, there are a number of tools online that can be used to check your credit report/score.  The ones frequently used by mortgage lenders that you can check yourself are Experian, Equifax, and Callcredit, or Checkmyfile will check all of these in one go.

Check My File

Why choose Nicholson Brown

Lender criteria varies hugely in the adverse credit market and our advisors pride themselves on knowing the intricacies of lender criteria to ensure that your application is placed with the lender most likely to accept your damaged or impaired credit.

Nicholson Brown Limited is authorised and regulated by the Financial Conduct Authority under register number 671013.

Your home (or property) may be at risk of repossession if you do not keep up repayments on your mortgage or loan secured upon it.

We do not charge for our initial consultation, however we charge a brokerage fee for residential and buy to let mortgage applications. The fee is dependent upon the complexity of your case and is typically up to £500, payable upon completion of the transaction.

This website is subject to the UK regulatory regime and is therefore primarily aimed at consumers based in the UK.

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