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A less-than-perfect credit history does not automatically prevent you from getting a mortgage.
What matters is what happened, when it happened, the amount involved, whether it has been resolved and how the rest of your financial position looks today.
Jayhawk Capital takes the time to understand the complete circumstances before explaining which mortgage routes appear realistic, where the challenges may lie and what needs to happen next.
Mortgage advice for applicants with missed payments, defaults, CCJs, debt arrangements or other credit issues.
“Bad credit” and “adverse credit” are broad descriptions. They can cover anything from an isolated missed payment to more significant or recent financial difficulties.
Lenders do not all assess these issues in the same way. Some place greater weight on how recently something happened, while others may focus on the amount, reason and whether the account has since been brought up to date.
Before considering individual mortgage products, we will take the time to understand:
This helps us establish how different lenders may view the application and whether there appears to be a realistic route forward.
A credit score shown by a credit reference agency can provide a useful indication of your credit position, but it does not decide the outcome on its own.
Mortgage lenders use their own criteria and credit assessment. They will normally consider the information recorded on your credit file alongside your income, expenditure, deposit, property and wider circumstances.
The areas that can influence the available options include:
An isolated late payment may be viewed differently from repeated arrears, a default, County Court Judgment or formal debt arrangement.
The lender will want to understand exactly what is recorded rather than relying on a general description of “bad credit”.
Recent credit problems can have a greater effect than older issues followed by a period of well-managed finances.
The relevant period will depend on the lender, the type of issue and the rest of the application.
The value of the missed payment, default or judgment can affect how the lender views it.
A small mobile phone or utility default may be treated differently from a larger unpaid loan or mortgage commitment, although every application remains subject to the lender’s criteria.
The lender will consider whether an outstanding balance has been paid, brought up to date or remains subject to a repayment arrangement.
Settling an issue does not automatically remove it from the credit file, but its current status can still be relevant to the assessment.
Financial problems can arise for many reasons, including redundancy, illness, relationship breakdown, business difficulties, an unexpected reduction in income or a disputed account.
An explanation does not remove the credit history, but it can help the lender understand whether the issue was a one-off event or part of an ongoing financial problem.
The lender is likely to consider how other accounts have been managed since the issue occurred.
A period of maintaining payments, reducing borrowing and avoiding further problems can provide useful context, although it does not guarantee that a particular lender will accept the application.
The amount you are borrowing in relation to the property value can affect the range of options available.
A larger deposit or stronger equity position may provide access to more lenders, but it does not override the need for the mortgage to be affordable and meet the lender’s criteria.
The effect of a credit issue will depend on its age, value, status and the wider application.
A missed or late payment can appear on your credit file where a contractual payment was not made on time.
The impact can depend on the type of account, how late the payment was, whether it happened once or repeatedly and how recently it occurred.
An isolated issue does not necessarily mean that only specialist mortgage products will be available.
A default is usually recorded where an account has fallen significantly behind and the lender considers the original agreement to have broken down.
Mortgage options can still be available after a default. The lender will consider the amount, date, type of credit involved, whether it has been settled and how other accounts have been managed since.
A County Court Judgment, commonly known as a CCJ, is a court order requiring money owed to be repaid.
Some lenders can consider applicants with a current or historic CCJ. The available options will depend on when it was registered, the amount involved, whether it has been satisfied and the circumstances around it.
A debt management plan is an arrangement for repaying unsecured debts at a level that is considered manageable.
Some lenders can consider applicants who have completed a plan, while others may consider an application where the arrangement remains active.
The lender will normally review the payment history, current balances, affordability and whether taking on a mortgage is appropriate alongside the existing commitments.
An Individual Voluntary Arrangement, or IVA, is a formal agreement with creditors.
Mortgage options may be available after an IVA has been completed and the relevant lender criteria have been met. The lender is likely to consider when it began and ended, whether it was completed successfully and how finances have been managed since.
A previous bankruptcy does not necessarily prevent someone from obtaining a mortgage indefinitely.
Some lenders can consider applicants after they have been discharged and once the lender’s required period and other criteria have been met.
The available options will depend on the time elapsed, deposit, income, recent credit history and wider circumstances.
Previous mortgage arrears or repossession are likely to receive closer scrutiny because they relate directly to secured property borrowing.
The lender will want to understand when the problems occurred, the amount involved, whether any balance remains and how the applicant’s financial position has changed.
These circumstances do not always make another mortgage impossible, but the choice of lender may be more limited and a detailed assessment will be required.
It is useful to review your credit reports before a mortgage application so that you understand what a lender is likely to see.
Different credit reference agencies may hold slightly different information. Reviewing the reports can help identify:
Where information is incorrect, it should be raised with the relevant organisation or credit reference agency.
You should not assume that a high consumer credit score guarantees acceptance or that a low score automatically means that no mortgage is available. The detail behind the score and the lender’s own assessment are more important.
Making several speculative mortgage applications can result in multiple searches and declined decisions without improving the position. We aim to understand the credit history before identifying the lenders whose criteria appear most relevant.
What reviewing can help identify
The right advice is not always to submit an application immediately.
In some cases, there may already be a realistic mortgage route.
In others, the available options could improve by:
Waiting is not automatically the better choice either. Property plans, current housing arrangements and changes in mortgage pricing can all affect the decision.
Jayhawk Capital will assess the position as it stands and be frank about whether applying now appears realistic or whether taking further steps first could produce a better outcome.
Where an applicant is currently struggling to maintain existing commitments, obtaining independent debt advice may be more appropriate before taking on additional secured borrowing.
Jayhawk Capital can assist with adverse-credit requirements across a range of residential mortgage situations.
We can help establish how the credit history may affect your borrowing position, deposit requirements and lender options before you make an offer.
Your existing equity, proposed purchase, current mortgage and credit position will need to be considered together.
Where the credit issue has arisen since the current mortgage was arranged, porting the existing deal or remaining with the current lender may need to be compared with applying elsewhere.
You may want to review an existing deal, change the mortgage term or raise additional funds.
The available routes can depend on whether the current mortgage has been maintained, the nature of the wider credit history and whether the existing lender offers a suitable product transfer.
Where two people apply together, the lender will assess both applicants.
A stronger credit history from one applicant does not remove issues recorded against the other, but the combined income, deposit and overall application will all form part of the assessment.
We begin with the property, amount required, deposit or equity and what you want the mortgage to achieve.
We also discuss the credit issues, when they occurred and whether they have been resolved.
We review the credit reports alongside your income, expenditure, existing commitments and wider circumstances.
Where applying immediately does not appear realistic or beneficial, we will explain that before a lender application is made.
Where there is a suitable route to explore, we consider lenders whose adverse-credit criteria appear appropriate for the circumstances.
We explain the proposed mortgage, costs and principal conditions before preparing the application and supporting information.
We remain involved while the lender completes its credit assessment, affordability checks, valuation and underwriting.
You will be kept informed about where the application stands, what is being reviewed, whether anything further is required and what happens next.
Jayhawk Capital was built around honest advice, accurate preparation and constant client communication. You will receive a clear view of what appears possible without being judged or left uncertain about the next step.
Yes, mortgage options can be available for applicants with adverse credit.
Whether an application is realistic will depend on the type of credit issue, when it occurred, the amount involved, whether it has been resolved and the strength of the wider application.
Your income, expenditure, deposit, existing commitments and property will also be assessed.
“Adverse credit mortgage” is a general term used for a mortgage arranged where the applicant has credit issues that fall outside some lenders’ standard criteria.
It is not one single mortgage product. Different lenders have different rules regarding missed payments, defaults, CCJs, debt arrangements and other credit events.
No single consumer credit score determines whether a mortgage will be approved.
Credit reference agencies calculate scores differently, and mortgage lenders use their own assessment methods.
The lender will review the detail recorded on your credit file alongside affordability, deposit, income and the property.
Yes, some lenders consider applicants with defaults or CCJs.
The available options will depend on the date, amount, type of account, whether the issue has been settled or satisfied and how your finances have been managed since.
Some lenders can consider applicants who are currently in a debt management plan, although the options are likely to be more limited.
Other lenders may require the arrangement to have been completed for a period before considering an application.
The current payments, outstanding balances, affordability and wider credit history will all need to be reviewed.
Mortgage options may be available after an IVA has been completed or a bankruptcy has been discharged.
The lender will apply its own requirements regarding the time elapsed, deposit and recent credit history.
We will need to understand the dates and current position before explaining which routes appear realistic.
A larger deposit can increase the range of options available, particularly where the credit issues are recent or more significant.
There is no single deposit requirement for every adverse-credit application. The amount will depend on the lender, credit history, affordability, property and mortgage product.
They can be.
Where a specialist lender is required or the application is considered to involve greater risk, the available rate and fees may be higher than those offered under standard lender criteria.
The complete cost should be considered alongside the initial rate, including product fees, advice fees and any early repayment charges.
Yes, but it is important to understand why the application was declined before approaching another lender.
Submitting the same case repeatedly without reviewing the credit history or lender criteria can lead to further unsuccessful applications.
We will assess the available information before deciding whether another application appears appropriate.
Yes, remortgage options can be available.
The lender will consider the current property value, mortgage balance, payment history, income, affordability and wider credit position.
A product transfer with the existing lender may also be worth comparing where changing lender would be difficult or unnecessarily expensive.
It depends on the lender.
Some lenders use a soft credit search at the mortgage-in-principle stage, while others may carry out a hard search that is visible to other lenders.
We will explain the type of search involved before proceeding with a particular lender.
Great customer experience! John was brilliant start to finish and really supported us throughout the whole process. Bridging loans were all new to us so John really took the time to make sure the loan was right for us, along with explaining everything in detail. We had a short timescale and John again made sure this was pushed along at each point in the process
Adviser: John Symons
You may already have found a property, be preparing to move or want to understand whether your credit history is likely to affect a future mortgage.
Tell us what you want to achieve and provide a brief overview of the credit issues involved.
We will review the initial information and contact you to discuss whether there appears to be a realistic route, what further details are needed and whether applying now is likely to be appropriate.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Jayhawk Capital may charge a tailored broker fee of up to 1% of the loan, subject to a minimum fee of £500.
For residential mortgages, the fee is generally payable when the mortgage offer is issued. The amount and payment stage will be confirmed before you decide to proceed.
Your adverse credit mortgage may also relate to other residential mortgage needs. Explore related services offered by Jayhawk Capital.
