Mortgage with bad credit Update July 2015

Published 9 July 2015 · Last reviewed 1 May 2026

Getting a Mortgage with Bad credit including CCJs, Default, Missed payment and debt management plans.

Residential and Buy to Let Mortgages with Bad Credit

Missed payments on loans and Credit cards
County Court Judgements (CCjs) And Defaults
Unsecured Credit Arrears
Low Credit Score
Payday ‘Style’ Loans
Debt Management Plans
Discharged Bankruptcies And IVA’s

There is a certain amount of irony that following a recession mortgage funding for clients with credit issues is sparse.
2015 has been a step in the right direction, and as we are at the halfway point of the year I thought I’d reflect on the changes to lending policies that might now help you obtain a mortgage.

MISSED MORTGAGE PAYMENTS
As a rule of thumb if you have other credit issues your existing mortgage must have been fully serviced for the last 12 months.

COUNTY COURT JUDGEMENTS (CCJS) and DEFAULTS
Standard lenders are pretty much stuck at 1 CCJ/default of no more than £500, however there is more tolerance for CCJs/default that have been satisfied for 3 years on low loan-to-values.

On the specialist lender front we now have options for CCJs/defaults of any size that are registered 12 months ago. If they are within the last 12 months then the limit is normally a few thousand pounds and the reason for the issue acceptable to the lender.

UNSECURED CREDIT ARREARS
We have lenders that ignore these issues in their assessments.

That’s right missed payments on items such mobile phones, unauthorised current account overdrafts, personal loans, credit cards, utility bills are no issue on certain products.

LOW CREDIT SCORE
I know from my regular conversations this infuriates would- be mortgage applicants. We have lenders on our panel who do not credit score.

PAYDAY ‘STYLE’ LOANS
Recent payday loans, even if serviced well, are generally a turn off for lenders as it displays symptoms of over stretching your finances. Its not a definite ‘no’ but one you would need to talk over with me before you apply.

DEBT MANAGEMENT PLANS
There are now a cluster of mortgage lenders that will consider applicants who have been servicing a debt management plan (DMP).

Overall their preference is lend to remortgage applicants who intend to clear the DMP by the proceeds on completion. Purchases are also considered but it is very hard to obtain finance for first time buyers in this category.

DISCHARGED BANKRUPTCIES AND IVAS
No real changes here in the last 12 months. A sizeable deposit of 25 to 30% and we can help get you a mortgage.

The good news is I can access lenders with greater tolerance to these assessments, including options that do not create a credit search on your record.

If you are looking for a Bad Credit Mortgage, with no upfront charges, why not give us a try? Please call us on 020 7993 2044 or complete the enquiry form on this page so we can try to help you look at all your Bad Credit Mortgage options.

Payam Azadi is a partner at Niche Advice Ltd who are Independent Financial and Mortgage Advisers in London.

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Most buy-to-let mortgages are not regulated by the Financial Conduct Authority. A small number of buy-to-let mortgages are FCA-regulated — typically Consumer Buy-to-Let (where the borrower is not acting in the course of a business, such as an accidental landlord who has inherited or moved out of a former main residence) and Family Buy-to-Let (where the property is let to an immediate family member). Limited-company buy-to-let, portfolio buy-to-let and standard personal-name buy-to-let are not regulated by the FCA.

Where the underlying mortgage is not FCA-regulated, the lender's conduct on that loan is not covered by FCA rules and you may have reduced access to the Financial Ombudsman Service for complaints about the lending decision or product terms. However, Niche Advice Limited is a Credit Broker authorised and regulated by the Financial Conduct Authority (FCA No: 750263), and our broking activity — including the introduction we make to the lender — IS FCA-regulated under the FCA's CONC rules. Complaints about our broking service can therefore be referred to the Financial Ombudsman Service in the usual way.