A less-than-perfect credit history doesn’t automatically disqualify you from getting a mortgage. It does make the process more complex — and this is exactly where having a broker who knows which lenders to approach makes the difference between approval and rejection.
We help clients across Birmingham and the wider West Midlands secure mortgages despite credit difficulties every month. Here’s what you need to know.
What Counts as Bad Credit?
Lenders assess credit history differently, but common issues include missed payments on credit cards, loans, or utilities, defaults and CCJs (County Court Judgements), debt management plans or IVAs, bankruptcy or debt relief orders, and thin credit history — not enough evidence of managing credit responsibly.
The impact depends on how recent the issue is, how severe it was, and how you’ve managed credit since. A single missed payment three years ago is very different from an active CCJ registered last month.
Your Options
Specialist lenders specifically cater to applicants with credit issues. Their rates are higher than high street lenders, but they assess applications on their individual merits rather than applying rigid automated scoring.
Larger deposits improve your position significantly. Where a high street lender might need 10% deposit for a clean credit applicant, a specialist lender might want 15-25% for someone with credit issues. The more skin you have in the game, the more comfortable lenders feel.
Time heals — most credit issues carry less weight as they age. A CCJ from five years ago is viewed very differently from one registered six months ago. Some issues drop off your credit file entirely after six years.
What We Do Differently
The biggest mistake people with credit issues make is applying directly to a high street lender and getting declined. That decline then appears on your credit file, making subsequent applications harder.
We assess your situation before approaching any lender. We know which lenders accept which types of credit issues, at what LTV, and at what point in time. This targeted approach means we only place applications where approval is likely — protecting your credit file from unnecessary searches.
We also help you understand your credit file before we start. Sometimes simple fixes — correcting errors, closing dormant accounts, getting on the electoral roll — can improve your position before we apply.
Common Scenarios We Handle
Missed payments: Most lenders want to see at least 12 months of clean payment history since the last missed payment. Some specialist lenders will consider applicants with more recent issues.
Defaults: Satisfied defaults older than 3 years are accepted by many lenders. Unsatisfied defaults are harder but not impossible.
CCJs: Satisfied CCJs over 2-3 years old are manageable with the right lender. Unsatisfied CCJs significantly limit options but don’t eliminate them.
IVAs and bankruptcy: Typically need to be discharged for 3-6 years depending on the lender. Specialist products exist for post-discharge applicants.
No credit history: Common among younger buyers or people who’ve always paid cash. Building a basic credit history (even a credit card used for small purchases and paid off monthly) helps significantly.
Can You Improve Your Position?
Often, yes. Depending on your timeline, steps like registering to vote, building a track record of on-time payments, reducing outstanding debt, and correcting any errors on your credit file can make a meaningful difference.
If buying isn’t urgent, we might suggest spending 6-12 months improving your credit position before applying. This can open up better products, lower rates, and more lender choice. We’d rather you waited slightly longer and got a better deal than rushed into an expensive product unnecessarily.
Moving Forward
If your credit history is holding you back, contact us for a confidential, no-obligation chat. We’ll review your situation honestly and tell you what’s realistic. No judgement, no pressure — just practical advice on your options.
Your home may be repossessed if you do not keep up repayments on your mortgage.
We charge a fee for mortgage advice. The precise amount of the fee will depend upon your circumstances but will range from £149 to £499 and this will be discussed and agreed with you at the earliest opportunity.
