Credit issues
A decline from a bank is not a verdict on you.
High-street lenders run automated scorecards, and a scorecard cannot tell the difference between somebody who does not pay and somebody who had a bad year in 2023. Specialist lenders employ people who can. There are more of them than you think.
Two things decide everything: how bad, and how long ago
Adverse credit is not one category. Lenders grade it by severity and by recency, and recency does most of the work. A satisfied default from four years ago barely registers with a specialist lender. Two missed payments last month is a much bigger problem, even though it sounds smaller.
Roughly what to expect, though every lender draws its own lines:
| On your file | Realistic position | Deposit usually needed |
|---|---|---|
| A late payment or two, over 12 months ago | Often still high street, at normal rates | 5% - 10% |
| Missed payments in the last 6 months | Specialist lender, near-prime tier | 10% - 15% |
| Default, satisfied, over 3 years old | Frequently ignored entirely | 5% - 10% |
| Default in the last 12 months | Specialist, priced by size and date | 15% - 25% |
| CCJ, satisfied, over 3 years old | Workable with several lenders | 10% - 15% |
| CCJ, recent or unsatisfied | Harder. Satisfying it first changes the picture | 20% - 25% |
| Debt management plan, still running | Possible with a small number of lenders | 15% - 25% |
| IVA, discharged over 3 years | Possible, specialist only | 15% - 25% |
| Bankruptcy, discharged over 3 years | Possible, specialist only | 20% - 25% |
| Repossession | Hardest of all, and time is the main cure | 25%+ |
Indicative only. Real outcomes depend on the whole file, the reason behind the event and what your conduct has looked like since. Some cases beat this table comfortably and some do not reach it.
Do this before you apply anywhere
- Get all three credit files. Experian, Equifax and TransUnion hold different data and lenders use different ones. Check every entry - errors are common and you have a right to have them corrected.
- Satisfy what you can. A satisfied CCJ or default is treated far more kindly than an outstanding one, and marking it satisfied is usually quick once paid.
- Get on the electoral roll. Free, fast, and it verifies your address history.
- Stop applying for things. Every hard search is visible for a year. A cluster of them reads as distress and will get you declined by lenders who would otherwise have said yes.
- Steady the last six months. No missed payments, no unarranged overdraft, no payday loans. Underwriters read recent conduct as the best guide to future conduct, and they are not wrong.
The most expensive mistake
Applying to lender after lender hoping one says yes. Each full application leaves a hard search, and by the fourth you have made yourself unlendable to firms that would have taken you at the start. If you have credit history to work around, the single most valuable thing you can do is get the file assessed once, properly, and then apply once to the right lender.
What it costs, and how to stop paying it
A specialist rate sits above the high street. That is the price of being looked at by a human. What matters is that it is temporary: take the specialist deal now, keep a clean record for two years, and the adverse ages while your loan to value improves. At the end of the fix you remortgage back towards the mainstream at a normal rate.
We plan for that from the first conversation - which means avoiding long tie-ins and heavy early repayment charges that would trap you in the expensive product past the point where you no longer need it.
Common questions
Credit questions
How long does something stay on my credit file?
Six years from the date it was registered, for defaults, CCJs, bankruptcies and IVAs. It drops off automatically after that - you do not need to do anything. Missed payments on an account show for six years too, though their impact fades long before then.
Will paying off a default remove it?
No, it stays for the full six years, but it changes from unsatisfied to satisfied, and that matters a great deal to lenders. An unsatisfied default suggests an ongoing problem. A satisfied one suggests something that happened and was dealt with.
Can I get a mortgage while I am in a debt management plan?
Sometimes, with a small number of specialist lenders, if payments have been maintained and you have a meaningful deposit. More often the better plan is to work out whether clearing or completing the plan first gets you a materially better outcome. We will run both scenarios so the decision is informed rather than hopeful.
My partner has the credit issues, not me. Can I apply alone?
You can, and sometimes it is the right answer - but you will be assessed on your income alone, which usually cuts what you can borrow substantially. If you are financially linked through a joint account, their file can still show on your search. It is worth comparing a solo application against a joint one with a specialist lender, because the joint route often wins despite the higher rate.
Is there any point talking to you if a bank has already said no?
Yes, and the sooner the better. A bank declining you tells us almost nothing except that you did not fit that one scorecard. What we need is the actual file. In a great many cases the answer is straightforward once you are pointed at a lender that assesses cases rather than scores them.
Start here
No judgement, and no hard search.
Tell us what is on your file and roughly when it happened. We will tell you honestly whether it is workable now, or what would make it workable, without touching your credit.
- The first conversation is free
- No credit check, no hard search
- A reply within one working day
Prefer to talk now? Call 0333 339 7301 or email [email protected].