What Is an Impaired Credit Mortgage?
Quick answer — Can I get an impaired credit mortgage? Yes. Specialist lenders offer mortgages to people with impaired credit profiles. The key is matching your specific type of credit impairment to the right lender. Darryl Dhoffer has access to 65+ lenders including specialist adverse credit lenders and knows exactly which ones suit which type of impaired credit.
An impaired credit mortgage is a mortgage for someone whose credit profile has been affected by past financial difficulties. The term is used interchangeably with bad credit mortgage adverse credit mortgage and subprime mortgage. They all describe the same type of specialist mortgage product.
The word impaired simply means damaged or diminished. An impaired credit profile is one where your credit score or credit history has been affected by events such as missed payments defaults CCJs IVAs bankruptcy or repossession. Darryl Dhoffer specialises in finding mortgage solutions for all types of impaired credit.
Darryl Dhoffer — The Mortgage Geezer
20+ years in financial services. Award-winning specialist. Featured in the Daily Express, FT Adviser, The Intermediary and Daily Mirror. I have helped hundreds of people across the UK who were told no by their bank — and I work with 65+ lenders including specialist adverse credit lenders you will not find on comparison sites.
When you contact me, you speak to me directly. No call centres. No being passed around. I personally review every case and respond within 2 hours.
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How Lenders Treat Different Types of Impaired Credit
"Impaired credit" covers a wide range. A single late payment from three years ago is treated very differently from a recent default or an active debt arrangement. Lenders look at what happened, how recent it is, how large it was and whether it is settled.
- Missed or late payments: recent lates matter most, especially on secured debts.
- Defaults: settled and older defaults are easier than recent or unsettled ones.
- CCJs: satisfied CCJs help, and the amount and date both count.
- IVAs, DMPs and bankruptcy: usually need a specialist lender, and a completed or discharged arrangement is easier than an active one.
What to Expect: Deposit, Rate and Fees
With impaired credit you should typically expect to need a larger deposit, often 10% to 25% or more depending on the issue, and a higher rate than a standard mortgage. The gap narrows as the credit event ages. Many people take a specialist deal first and then remortgage to a better rate once their file has improved.
Our broker fee is £750 to £995 depending on complexity, payable only once your mortgage is agreed and offered. The initial assessment is free and does not involve a credit search.
What Makes an Application Stronger
- A clean record since the last credit problem.
- Being on the electoral roll at your current address.
- Stable, evidenced income and no new borrowing before you apply.
- Checking your credit reports for errors first.
Not sure where you stand? Start with a free assessment.
Frequently Asked Questions
What is the difference between impaired credit and bad credit? ›
There is no practical difference. Impaired credit adverse credit and bad credit are all terms used to describe a credit profile that contains negative information such as missed payments defaults CCJs or IVAs. Different brokers and lenders use different terms but they all refer to the same situation. Darryl uses all these terms interchangeably.
Can I get an impaired credit mortgage? ›
Yes. Specialist lenders offer mortgages to people with impaired credit profiles. The key is matching your specific type of credit impairment to the right lender. Darryl Dhoffer has access to 65+ lenders including specialist adverse credit lenders and knows exactly which ones suit which type of impaired credit.
Does impaired credit mean I need a specialist broker? ›
Yes. Impaired credit mortgages are not available on comparison sites or through high street banks. Specialist lenders only work through FCA-authorised brokers. Darryl Dhoffer is your route to all specialist impaired credit mortgage lenders.
How long does credit remain impaired? ›
Most adverse credit events remain on your file for 6 years. As they age their impact reduces. After 6 years they drop off your file entirely and your credit profile recovers to whatever your underlying payment behaviour has been since. Darryl will tell you exactly how your specific credit history affects your current options and your future outlook.
Is an impaired credit mortgage more expensive? ›
Typically yes by 0.5-2% above standard rates depending on the severity and age of the credit impairment. However as your credit improves and you remortgage the rate improves. Darryl plans every case with the full mortgage journey in mind not just the initial product.
How big a deposit do I need with impaired credit? ›
It depends on the type and age of the credit issue and the lender, but 10% to 25% or more is common. Settled and older issues usually need less than recent or active ones.
Will a lender see my impaired credit if it is settled? ›
Yes. Defaults and CCJs stay on your credit file for six years from the date they were registered, even once settled, but a settled item is generally viewed more favourably than an unsettled one.
Get Your Free Assessment Today
No credit search. No obligation. Darryl personally reviews every enquiry and responds within 2 hours.
01234 237321
contact@themortgagegeezer.co.uk
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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. The Mortgage Geezer is a trading style of Access Financial Services Ltd who are authorised and regulated by the Financial Conduct Authority. The Financial Services Register number is 301173. Registered in England No. 04427489. Registered office address Access Financial Services Ltd, Unit 1 Furtho Court, Towcester Road, Old Stratford, Milton Keynes, MK19 6AN. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP YOUR REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER LOAN SECURED AGAINST IT.
