People with a history of credit problems such as defaults, arrears, late payments, bankruptcy or County Court Judgements are often described as having adverse credit.

An adverse credit mortgage specialist has access to all the mainstream and specialist lenders who are sympathetic to people with previous financial problems. 

When an individual makes an application for a mortgage, the lender has the facility to search the person's credit files to determine what sort of risk they present. Individuals who have experienced adverse credit problems in the past are often turned down for a mortgage by high street lenders as they are regarded as high risk.

However all is not lost and the good news is having an adverse credit history does not necessarily prevent you from securing a  mortgage or remortgage. Following the credit crunch, there are still a few lenders active in this niche market although products are less  competitive than in recent years.

The adverse market was estimated to be worth £25bn in 2006 and is expected to grow in the next few years, mainly due to unprecedented levels of consumer debt. More and more people are likely to have tainted credit records due to increasing amounts of arrears, CCJs and the increasing use of IVAs and bankruptcy proceedings. Levels of consumer debt through credit cards, loans and store cards are at record levels. The Office of National Statistics claims the average person is £5,330 in debt – an increase of 50% in five years. Not that adverse credit should be confused with debt. Adverse credit happens when people default on debt repayments.

The options open to you will depend on whether you fall under the light, medium or heavy adverse classification and what amount of deposit you have available to purchase your home. On the whole, the grimmer your scenario gets the higher your interest rate and deposit required is going to be. 

No Obligation - Free Quotations

For advice on the best deals for you, simply complete our no obligation enquiry form.  Quotations are FREE so it costs you nothing to see what your options are.