Adverse Credit

Although your options may be limited because of adverse credit, it may still be possible to secure a mortgage – especially if you use a whole of market broker. There are a whole range of poor credit mortgage lenders out there and knowing where to look in these scenarios is key to success.

Even if you have been declined by your high street lender, don’t let that put you off from having a conversation with your broker who will be able to advise on alternative options.  

There’s no avoiding lender’s having to conduct a credit search but there are a few steps you can follow to improve your chances of being approved even with your poor credit.

Improve your mortgage chances


Give it time

As tempting as it is to dive straight into house hunting, consider waiting. Many black marks on your file become less and less significant as time goes by - especially if you've improved your financial situation since they occurred.

Sometimes all it needs is a matter of months to improve not only your chance of a mortgage but to open up more favourable mortgage options.


Improve your score

There are a few things that you can do to start improving your score today such as setting up direct debit payments to avoid any missed payment marks. We've put together a list of things you can do to improve your score here.


Correct any errors

As you look through your report you may spot errors or financial associations that should no longer be there. Contacting the credit agency ahead of your mortgage application will give time for it to be resolved before these errors hinder your application unnecessarily.


Be honest

Don't try to hide any adverse credit from your broker or mortgage lender, it will just create further issues and hurdles.



Lenders will be open to listening and considering explanations as to why you found yourself in financial difficulty especially if you can show that your situation has consistently improved since then. Using a broker will prove to be a great advantage here as they'll have direct access to underwriters and will be able to have these conversations on your behalf.


Decrease the lenders 'risk'

Lenders assign a level of risk to all applicants, no matter their credit situation. To reduce their level of risk and ultimately improve your chances of obtaining a mortgage, you may want to consider increasing your deposit to decrease the Loan to Value i.e. the lender won't need to loan you as much. If that isn't an option, then it may be worth considering looking at cheaper properties and lower the LTV that way.

Check your Credit Report

If you haven't got access to a copy of your credit report already, you can sign up to a free trial here;

Check My File


1. Can I get a mortgage with a poor credit score?

In short, yes it is possible to get a mortgage with a poor credit score/ adverse credit. However, specific details in regard to what has contributed to your poor score will be factored in to a lenders decision. In some extreme cases, you may need to wait for the adverse credit event(s) to be cleared from your file, which takes 6 years.

2. Why does a poor score make it harder to obtain a mortgage?

When you apply for a mortgage, lenders will assess the risks involved in the likelihood of you being able to keep up with loan repayments as agreed within the terms of your loan. The tool they use to assess this is your credit file, so if your credit file is displaying a poor score then lenders are going to view you as higher risk and are more likely to decline the loan request.

3. Will I have to pay more for a 'bad credit mortgage'?

In regard to the broker fee, Need Financial Planning would charge you the same fee as a standard mortgage application (£495 for a purchase, £295 for a remortgage). However, if we had to approach a specialist lender due to the nature of your adverse credit, you should expect higher mortgage rates due to the higher risk which will impact your monthly mortgage payment.

Your home may be repossessed if you do not keep up repayments on your mortgage.