Adverse credit means any negative marker on your credit file — missed payments, defaults, County Court Judgments (CCJs), IVAs or bankruptcies. UK lenders sit on a spectrum from high-street (no adverse) to specialist (recent, unsettled adverse), and pricing rises with severity and recency.
The scenario
Mr D from Doncaster wanted to buy a £215,000 house with a 15% deposit. Employed PAYE at £41,000. Two defaults on his credit file: a £340 mobile-phone default 18 months ago, and a £900 credit-card default 11 months ago (both now settled). One CCJ for £560, satisfied 14 months ago. Otherwise 24 months of clean payment history.
Why this case was awkward
Two high-street lenders had already declined at DIP. High-street criteria typically require no defaults in the last 36 months over £250, and no CCJs in the last 36 months regardless of size. The client also had no prior mortgage history.
How different lenders treated the case
- Lender A (high-street) — Declined at DIP. No defaults >£250 in 36 months.
- Lender B (high-street) — Declined. CCJs must be >3 years satisfied.
- Lender C (specialist Tier 1) — Accepts up to 2 defaults >12 months, ignores <£250. Max 85% LTV. 5.79% 2-year fix.
- Lender D (specialist Tier 2) — Accepts unlimited defaults >6 months. Max 80% LTV. 6.44% 2-year fix.
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Our approach
We placed the case with Lender C on a 2-year fix at 5.79%, 85% LTV. Alongside the application we submitted a one-page underwriter narrative: the £340 default was a disputed final bill after a house move, and the £900 credit-card default and CCJ both stemmed from a single period of illness now resolved and evidenced by 24 months of clean payments. The narrative pre-empted every question underwriting was likely to ask.
Outcome
Full offer issued in 13 working days. The client purchased and moved in. Twenty-one months later we remortgaged him to a mainstream lender at 4.79% on a 5-year fix — the older adverse now fell outside their criteria window. Broker fees: £299 at purchase, £199 at remortgage, agreed in writing before each application.
Learnings for other adverse-credit applicants
- Get all three credit files (Experian, Equifax, TransUnion) before you apply — lenders don't all pull the same one.
- Settle everything you reasonably can. Settled adverse is treated more leniently.
- Don't shotgun DIPs. Every hard search on a specialist file makes the next case worse.
- Diarise the remortgage date. The specialist rate is a bridge, not a destination.
Frequently Asked Questions
- Can I get a mortgage with a default on my credit file?
- Yes — most UK lenders will consider settled defaults, especially those over 12 months old. Rate and LTV depend on the age, severity and total value of adverse markers.
- How long do defaults stay on my credit file?
- Six years from the date of default, regardless of whether it is settled. Lenders' underwriting windows are usually much shorter — often 24 or 36 months.
- Do I have to pay a higher rate forever?
- No. Specialist lenders typically bridge for 2 years, after which adverse markers age out of mainstream criteria and the case can usually be remortgaged to a high-street rate.
Sources & References
- FCA MCOB affordability rules — Financial Conduct Authority
Anonymisation & consent
Client name, location and identifying details have been changed. Income figures, lender names and dates are indicative of the actual case handled by our advisers. Written and published with the client’s consent as an illustrative example — individual outcomes will vary based on your circumstances, lender criteria and market conditions at the time.
Published 24 July 2026 · Last reviewed 26 July 2026 by Matty Stevens · Compliance oversight: Primis Mortgage Network. Your home may be repossessed if you do not keep up repayments on your mortgage.
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