It’s been a while since I have written about bad credit, but we seem to have had so many calls recently about this subject that I thought it was something I should address:
More and more lenders are agreeing to cases where customers have had blips on their credit profile. The main questions are, How big was the blip? How many blips do you have? and How long ago was the blip?!
Customers running into trouble with a mobile phone provider can often find themselves blacklisted and therefore unable to get a mortgage. Sensibly a lot of the High Street lenders now ignore one off blips with communications companies so they can get on with processing your mortgage while you let loose at your phone provider!
If the blip is more significant than one missed payment with Vodafone, you are unlikely to pass a credit score with a high street lender. A credit score is the lender’s (secret) internal score card for each applicant and defaults on loans and county court judgements will bring this score below the minimum level to qualify. Thankfully, some lenders have no such thing as a credit score, instead each application is given the once over by an underwriter, rather than a computer, to see if it’s a sensible risk for the lender to take on.
No providers are interested in serial offenders, but they will look favourably on “one off events” wherever plausible.
This means that clients with (on paper) terrible credit, can in some cases now get a mortgage. We have a client Mr X who went through a terrible divorce which resulted in 3 CCJs, some mortgage arrears and a default 2 years ago. Prior to this event he had impeccable credit and once the divorce was settled, there were no further problems. This client got an 85% poor credit mortgage at a reasonable rate.
Then take the case of Mrs Y who gave up work to become a full time Carer for her mother for 5 years. The credit register is littered with defaults and late payments for this period and clearly reflects the struggle the family had with money. Despite the amount of adverse credit, when she returned to work, we managed to secure a mortgage which also paid off a couple of credit cards which were spiralling out of control.
The moral of this story, is to keep your credit clean where possible, but if you do his a blip –all is not lost!
To speak to a mortgage adviser, contact us on 01628 507477.
Related articles:
Recent posts
There was a 32% increase last year in 100% loan-to-value (LTV) mortgages which are mortgages that require zero deposit. According to a recent report by chartered accountants and business advisers, Lubbock Fine, the reason behind this is buyers simply struggling to save enough for a deposit.
Average savings by age in the UK
2 days ago
Many people are quite private when it comes to what is in their bank account. In this short blog, we look into what Brits have saved by age group.
Research from buy-to-let lender, Landbay, shows that UK landlords are looking at raising rents ahead of the Renters' Rights Bill which is due to come into force this year.
Data shows landlords could miss out on green mortgages due to expired energy performance certificates.
Buying a house is a big deal, and where you are planning to buy will make a difference financially. In this short blog, we look at the most affordable and most expensive areas and how much you need to be earning to buy in there.
Pros and Cons of Equity Release
20 May 2025
Equity release is a type of mortgage that allows homeowners 55 and over to access money from their property's equity without having to leave their home. This is done by securing a loan against the house which is usually repaid by selling the property when the borrower passes away or has to move into long-term care.
Your House Viewing Checklist
19 May 2025
It’s important to ask questions about the property you are interested in before taking that step to make an offer. A little probing can make all the difference between buying your dream house or something that requires a lot of work.
Half of over 60s predicted to benefit from accessing housing wealth through Equity Release
16 May 2025
There are millions of homeowners over the age of 60 who are likely to release money from their homes to pay for their lifestyle during retirement giving those who are 'asset rich but cash poor' a way to live out their retirement the way they wish.
More information
Trusted by
