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
Analysts are predicting further rate cuts this year, with the next one possibly coming down to 4% when the Bank of England’s Monetary Policy Committee meet on Thursday 7th August 2025.
The Financial Conduct Authority (FCA) has shared new changes to mortgage rules with the aim to simplify remortgaging, and encourage competition within the mortgage market.
Lloyds boost lending for first-time buyers
7 days ago
Lloyds Banking Group has jumped on the bandwagon to boost lending for first-time buyers as they allocate an additional £4 billion to help first-time buyers on to the property ladder.
As the Loan to Income (LTI) cap has been increased to 5.5 times income, applicants who fit the First Time Buyer Boost criteria could borrow up to 22% more.
The government is introducing mortgage reforms to boost homeownership, stimulate economic growth, and make the housing market more accessible, especially for first-time buyers.
Chancellor Rachel Reeves has announced the most significant mortgage reforms in over a decade—great news for those dreaming of homeownership.
Nationwide ease criteria for first-time buyers
10 days ago
Nationwide ease their ‘Helping Hand’ mortgage designed to help first-time buyers get onto the property ladder by allowing them to borrow up to six times their income.
Ways to save money over the summer holiday
16 days ago
Keeping the kids entertained over the six-week summer holidays isn’t always easy, especially with the cost-of-living making it even more difficult. Below is a list of fun, inexpensive ideas to do over the break
The Financial Conduct Authority (FCA) has published a discussion paper about the future of the mortgage market in a bid to improve access for first -time buyers, self-employed, and those borrowing in retirement.
Ever wondered where the most reasonably-priced towns for families to buy are? Property company, Zoopla has identified the top 10 towns for families to live in the UK by looking at the most affordable towns, and how many people are looking in that area.
More information
Trusted by
