Bad Credit Mortgages in Surrey & Hampshire
Having bad credit does not mean you cannot get a mortgage. It means you need the right lender — one who specialises in adverse credit applications, assesses your full circumstances rather than relying on a credit score alone, and prices the mortgage fairly for your risk profile. We work with specialist lenders across the whole market and regularly secure mortgages for buyers whose applications have been declined by high street banks.
What Counts as Bad Credit?
Lenders assess credit history in detail. The main types of adverse credit, roughly in order of severity:
| Credit Issue | Typical Age at Which Impact Reduces | Lender Impact |
|---|---|---|
| Missed payment (1–2) | After 12–24 months | Minor — many lenders ignore if satisfied |
| Missed payments (3+) | After 24–36 months | Moderate — specialist lenders required |
| Default (satisfied) | After 2–3 years | Moderate — many specialist lenders available |
| Default (unsatisfied) | After 3–4 years satisfied | Higher — fewer lenders, higher rates |
| CCJ (satisfied) | After 2–3 years | Moderate to higher — specialist lenders |
| CCJ (unsatisfied) | Harder — must be resolved | Very limited options until satisfied |
| IVA (satisfied) | After 3–4 years post-satisfaction | Specialist lenders, higher deposit |
| Bankruptcy (discharged) | After 3–6 years post-discharge | Specialist lenders, higher deposit required |
The Age and Satisfaction of the Issue Matters Most
Lenders are far more concerned with recent credit history than old issues. A satisfied CCJ from 4 years ago is significantly less impactful than a missed payment from 6 months ago. A default registered 3 years ago and satisfied 2 years ago sits in a different risk category from an unsatisfied default registered last year. The first step in any adverse credit assessment is understanding exactly what is on the credit file, when each issue was registered, and what the current status is.
Deposit Requirements with Adverse Credit
Most adverse credit lenders require a larger deposit than the standard 5% to 10% minimum. The specific requirement depends on the type and severity of the credit issue:
- Minor missed payments (satisfied, 12+ months old): 10% deposit may suffice
- Defaults or CCJs (satisfied, 2+ years old): 15% to 20% typically required
- IVA (satisfied): 25% typically required
- Bankruptcy (discharged 3+ years): 25% to 30% typically required
The Credit File Review — Do This First
Before any mortgage application with adverse credit, obtain a full statutory credit report from all three agencies (Experian, Equifax, TransUnion) and review every entry. Errors on credit files are more common than most people realise — accounts that have been closed but show as open, settled debts marked as active, incorrect balances. Errors can be corrected by writing to the credit agency with supporting evidence. Correcting an error before application can move an application from decline to approval.
We review your credit file before making any recommendation or running any application. This costs nothing, involves no credit search, and ensures we only approach lenders whose criteria are realistic for your specific history. A declined application from the wrong lender stays on your file and makes subsequent applications harder.
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