What is a 'bad credit mortgage'?

A bad credit mortgage (or adverse credit mortgage) is a mortgage issued to borrowers with low credit ratings. They are designed for people with adverse credit including missed payments, CCJs, defaults, or debt management plans. These specialist mortgages work like standard mortgages but may come with higher interest rates or lower borrowing limits depending on your circumstances.

What affects my credit score?

Understanding the key factors that impact your credit score can help you take the right steps to improve it over time. Here are the most common reasons your score might be lower than expected:

• Payment History - Your track record of repaying credit cards, loans, and other commitments is the most important factor. Late or missed payments will negatively affect your score and stay on your credit file for up to 6 years.
• Lack of Credit History - If you've never borrowed money or used credit—especially common among younger applicants—lenders have no track record to assess your reliability, which can result in a lower score.
• County Court Judgments (CCJs) - A CCJ is a court order issued when you fail to repay a debt. It will appear on your credit report and can significantly reduce your ability to get approved for credit or a mortgage.

How long does bad credit stay on my file?

Most types of adverse credit, including missed payments, CCJs, and defaults, will remain on your credit report for six years from the date of the issue. During this period, lenders will be able to see these marks, which can limit your access to mainstream mortgage products.

Does the electoral roll affect my credit score?

Yes - being registered on the electoral roll helps lenders verify your identity and address. Not being registered can negatively impact your credit rating. The good news is that registration is free and quick. You can register online via the official government website.