Adverse credit is a broad term covering everything from a single missed payment to bankruptcy. What matters is not the label but the specific details of your situation. Darryl Dhoffer reads credit files the way lenders do and tells you exactly what's possible — honestly and without jargon.
Adverse credit — also called bad credit, poor credit or impaired credit — refers to any negative information on your credit file that makes lenders view you as higher risk. This covers a wide spectrum from minor issues to significant financial difficulties.
The UK has a well-developed specialist mortgage market for adverse credit borrowers. Understanding where your situation sits on that spectrum is the first step to knowing what's available to you.
From least to most severe in terms of lender impact:
The impact of adverse credit diminishes over time. Key thresholds that specialist lenders typically use:
The size of your deposit has a significant impact on your options with adverse credit. More equity reduces the lender's risk and opens up more lenders and better rates:
Adverse credit refers to negative information on your credit file that indicates past difficulty managing credit. This includes missed payments, defaults, CCJs, DMPs, IVAs and bankruptcy. Adverse credit makes mortgage applications more difficult with mainstream lenders but specialist lenders have criteria specifically designed to accommodate a wide range of adverse credit histories.
Most adverse credit markers stay on your credit file for six years. However their impact diminishes over time — markers older than two to three years and those that are settled are treated significantly more favourably than recent unsatisfied adverse credit. Darryl can assess exactly how your specific adverse credit history affects your current options.
A 90% LTV mortgage with adverse credit is possible in some cases, particularly where the adverse credit is minor and well in the past. Most specialist lenders prefer a maximum LTV of 75-85% for adverse credit applications. The lower the LTV, the more lenders will consider your application and the better the rates available.
Adverse credit and bad credit mean the same thing — negative information on your credit file. Adverse credit is the more formal term used by lenders and mortgage professionals. Bad credit is the colloquial term most commonly used by borrowers. Both refer to the same range of issues from missed payments to CCJs and IVAs.
20+ years specialist experience. 65+ lenders. No credit search at this stage.
The Mortgage Geezer is a trading style of Access Financial Services Limited, authorised and regulated by the Financial Conduct Authority — FCA No. 301173. Your home may be repossessed if you do not keep up repayments on a mortgage.
Lender criteria, rates and deposit requirements quoted on this page are indicative and subject to change without notice. Individual circumstances vary. This page provides general information only and does not constitute regulated financial advice. Darryl Dhoffer is authorised and regulated by the Financial Conduct Authority — FCA No. 301173. Access Financial Services Ltd, registered in England No. 04427489. Your home may be repossessed if you do not keep up repayments on your mortgage.