Adverse-credit mortgages, explained

A mortgage with bad credit is often possible in the UK through specialist lenders that accept issues the high street declines. What decides it is the type of issue (CCJ, default, missed payment, DMP, IVA, bankruptcy), how recent it is, the amount, and whether it is resolved. Rates carry a premium that shrinks as the issue ages, and most credit events drop off your file after six years. The key is applying to a lender that accepts your specific situation.

If a bank has said no, that is not the end of the road, it usually just means you applied to a lender whose criteria do not fit. This section walks through each type of credit issue calmly, so you know where you stand and what improves with time.

Time is on your side

The single biggest factor in adverse-credit lending is recency. A default or CCJ from three years ago is treated very differently from one last month, and once an issue is satisfied (paid) it is viewed more kindly again. Because most events stay on your file for six years and then disappear, your options widen steadily over time, often without you doing anything except keeping the recent record clean.

Find your situation

Mortgage with a CCJ How a county court judgment is viewed, satisfied or not, and over time. Mortgage with a default Defaults age out: how recency and the amount change your options. After missed payments Late or missed payments, especially on credit, and how lenders weigh them. After a DMP Borrowing during or after a debt management plan. After an IVA During, on completion, and once it drops off your file. After bankruptcy (discharged) How long after discharge, and what lenders look for.

Common questions

Can I really get a mortgage with bad credit?

Often yes. Specialist lenders exist precisely for credit issues that high-street banks decline. What matters is the type of issue, how recent it is, how large, and whether it is resolved. Two years can change a case completely, and many people are surprised how much is possible.

Will I pay a higher rate?

Usually some premium, yes, because specialist lending carries more risk. The premium tends to shrink as the issue ages and as you rebuild a clean record. Many borrowers move to a mainstream rate at their next remortgage once the adverse event is older or has dropped off their file.

How long do credit problems stay on my file?

Most issues, including defaults, CCJs, IVAs and bankruptcy, are recorded on your credit file for six years from the date of the event. As they age, lenders weigh them less, and once they drop off they are no longer visible to lenders.

Should I just apply to my bank?

With adverse credit, applying to the wrong lender risks a decline that leaves a further footprint. A broker who knows which specialist lenders accept your specific issue, and at what age and size, avoids wasted applications. That is the core of what we connect you to.

Been turned down already? See declined for bad credit.

AP

Adam Parker

Founder, MortgageExplained, MortgageExplained

Adam spent nearly a decade as a mortgage adviser at Just Mortgages, with further experience in commercial finance. He is CeMAP and CF qualified. He built MortgageExplained to do one thing well: explain mortgages in plain English, then introduce you to a regulated broker when you are ready. Every page is written and reviewed by Adam.

Last reviewed: 29 June 2026

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