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Bad & Adverse Credit Mortgages - Avail Mortgages

Just because your credit is bad, doesn’t mean your mortgage has to be…

Adverse credit – also known as bad credit – is where you have a not-so-great history of repaying debt or credit loans. Perhaps you’re guilty of missing bill payments, or making late payments consistently? Maybe you’ve been given county court judgements (CCJs)? Or maybe you have a debt management plan or individual voluntary arrangement (IVA) because you need longer to pay back your debt?

Whatever the reason, a bad credit mortgage allows you to borrow money, providing you pass the mortgage lenders’ credit checks. But how can you get a mortgage with bad credit? Aren’t you seen as higher risk? How does your credit history and credit score come into play? And what interest rates are there on adverse credit mortgages? At Avail Mortgages, our mortgage specialists can answer all of this and more, ensuring that you get the right mortgage for you.


With our help, you’ll have access to the best mortgage advice around. Right from the start, we make the mortgage application process easy, talking you through our most suitable finance options, dependent on your financial situation and financial difficulties. Using our bad credit mortgage calculator, we’ll source the best rates and best deals, ensuring your mortgage doesn’t add any additional strain to your finances. Our mortgage brokers are there to support you, and will do their utmost to.

To speak to one of our mortgage specialists, please get in touch with us today. We’ve helped clients in Leeds and the surrounding areas including Huddersfield, Bradford, York and Harrogate with their mortgage needs, helping them to find better rates and bad credit mortgages that truly make a difference in comparison to their previous loans.

What is a bad/adverse credit mortgage?

What Is a Bad Credit Mortgage?

Bad credit mortgages allow those with a poor credit history and credit score to access funds at a higher interest rate – i.e a mortgage for adverse credit history. Because you’ll likely have a low credit score – and therefore be seen as a higher risk to a mortgage lender – there will be a limit on how much you can borrow, and you may be asked to provide a deposit of approximately 20-25% of the property’s value, should you be a first time buyer, home mover or are looking to remortgage your property.

When you fill in adverse credit mortgage applications, the best mortgage lenders will look at your credit history and credit score to determine how well you manage your finances. Along with your income, monthly outgoings and savings, mortgage lenders will also ensure that you can afford the monthly mortgage repayments in cases of change – such as the mortgage interest rates increasing, or your income going down.

Getting a mortgage isn’t always easy, but with a mortgage broker such as Avail Mortgages by your side, the process becomes a whole lot simpler. With a hassle-free approach that takes your needs into account, our mortgage specialists support and guide you through the mortgage application process. To learn more about our range of bad credit mortgages, please get in touch with us today.

Adverse credit mortgage

What Does Bad Credit History Mean?

Your credit history is a credit record of every credit product you’ve ever taken out, and your propensity to pay that back. Credit products include loans, mortgages, credit cards, current accounts and even mobile phone contracts. Every time you take out a credit product, it’s reported to three credit rating agencies – Experian, Equifax and TransUnion. Every month, your mortgage lenders, banks and other lenders report to these agencies stating whether you’ve made payments in full and on time. If you haven’t, and there are missing payments, then this could tally up and lead to you having an adverse credit history. An adverse credit history could be caused by factors such as:

Defaults: Defaults are where you fail to make a payment on time, such as credit card payments, personal loan payments or utility bills. Though defaults may simply lead to the closure of an account, it can have greater ramifications if money is owed for mortgages. Further, a default stays on your credit history for six years, even if you repay it sooner.

County Court Judgments (CCJs): A CCJ will be reported should you fail to repay a debt that you owe, and other attempts to recuperate the money owed – such as a warning letter or default notice – has gone unanswered. If you don’t pay back a CCJ in full within 30 days, the CCJ will stay on your credit history for 6 years.

Bankruptcy: Bankruptcy is a declaration that you can’t pay back your unsecured debts, which typically amount to £5000+. A trustee will have to take over your financial situation, meaning you’ll no longer be chased for the money owed by your creditors, and most of your assets will be sold in order to raise money to pay off your debts.

Individual Voluntary Arrangements (IVAs): An individual voluntary arrangement is a credit agreement between yourself and your creditors, detailing an affordable mortgage repayments plan. The money from the individual voluntary arrangement goes straight to an insolvency practitioner, who distributes the money to your creditors. An IVA will stay on your credit file for 6 years.

When you apply for credit or a mortgage, your mortgage lender will check your credit history for any missed payments or late payments, as well as your credit score. This can make getting some mortgage products difficult, but this is where a bad credit mortgage can come in handy. If defaults, county court judgements and debt management plans are getting you down, then a mortgage for adverse credit history could be the answer. Our mortgage brokers are here to help you get back on your feet. So, let’s hit the ground running with your bad credit mortgage today.


How To Get A Mortgage With Bad Credit

If you have a bad credit history and credit score, then luckily, there are a number of things you can do to boost your chances of getting an adverse credit mortgage, and this includes:

  1. Being Patient and Giving It Time: Poor credit scores will be seen as less cause for concern over time, especially if your financial situation improves.

  2. Repair and Fix Your Credit History and Credit Score: Establish a pattern of consistent payments and responsible credit usage, so that your credit score improves.

  3. Be Honest About Your Financial Situation: Mortgage lenders conduct thorough searches when it comes to bad credit mortgages, and trying to hide adverse credit will not be looked upon favourably.

  4. Apply at a Lower Risk Level: Apply for a bad credit mortgage when you have a more stable income, and if you’re in need of a mortgage broker due to property, try to provide a higher deposit. The larger your deposit, the lower your loan-to-value ratio (LTV) too, making you a lower risk to the best mortgage lenders.

  5. Keep Your Credit Utilization Ratio Low: The Credit Utilisation Ratio represents how much credit you’re using compared to how much credit is available to you. Most banks and the best bad credit mortgage lenders advise keeping below a 30% Credit Utilization Ratio.

  6. And most importantly, speak to a mortgage broker such as Avail Mortgages for the best live rates and mortgage advice.


Bad Credit Mortgage Rates

When it comes to adverse credit mortgage rates, there are various finance options available to first time buyers, home movers and those looking to remortgage. Fixed rate mortgages and discount mortgages are the main mortgage types our mortgage brokers can help you with, though we can also provide you with mortgage advice on other types too.

Fixed Rate Mortgages

With fixed-rate mortgages, you pay the same interest rate for the whole bad credit mortgage deal period. Two year mortgage deals and five year mortgage deals are most common, and when you reach the end of your fixed term you’ll usually be moved on to your lender’s standard variable rate (SVR).

Discount Mortgages

With discount mortgages, you pay the mortgage lender’s standard variable rate, with a fixed amount discounted. For example, if your mortgage lender’s standard variable rate was 5% and your mortgage came with a 1.5% discount, you’d pay 3.5%. Discount mortgages can be ‘stepped’, as in, you may take out a 2 year deal, and pay one rate for 6 months and then a higher rate for the rest of the mortgage term.

Choosing between a discount mortgage and fixed rate mortgage can be tricky, especially when there’s your financial situation to consider. Let Avail Mortgages help. Our mortgage brokers can source the best bad credit mortgage rates around, using our specialist knowledge of the market, and our bad credit mortgage calculator. Therefore if you’re located in Leeds or the surrounding areas including Huddersfield, Bradford, York and Harrogate and are looking for the best mortgage lenders, we recommend getting in touch with us today.


Get In Touch

For a hassle-free approach to bad credit mortgages that takes your financial situation into account and provides you with the best mortgage Lenders around, please contact Avail Mortgages today. Our mortgage brokers provide help for first time buyers, home movers and those looking to remortgage, as well as those in need of funds. Supporting clients in Leeds and the surrounding areas including York, Bradford, Harrogate, Sheffield and Huddersfield, our adverse credit mortgage brokers will do all they can to help, and provide you with the best possible live rates around. So, what are you waiting for?