Bad Credit & Adverse Credit Mortgages | UK-Wide

Mortgages with adverse credit

Adverse credit does not rule you out of a mortgage — it narrows which lenders will consider you and usually means a larger deposit and a higher rate for an initial period. What matters most is how recent the issue is, how large it was, and whether it is satisfied. A default from four years ago is often invisible to a mainstream lender today; a missed mortgage payment from six months ago is far more significant than a much larger default from three years ago. Prime Mortgages places cases with specialist lenders across the UK. Adverse credit residential cases are regulated mortgages, so our fee starts at £495 and is capped at 1% of the loan, agreed in writing before any work begins.

Defaults, CCJs, missed payments, DAS and trust deeds

We check your file first, then approach the right lender

One application, not five — protecting your credit file

What lenders will and will not accept

Scotland has its own insolvency framework — the Debt Arrangement Scheme, protected trust deeds and sequestration rather than IVAs and bankruptcy. Some English-focused lenders and comparison sites handle Scottish entries on a credit file badly. It is worth using a broker who reads them correctly.

Credit issue	Mainstream lenders	Specialist lenders
Missed payments on unsecured credit	Often acceptable if over 12 months old	Acceptable, recent
Default, satisfied, over 3 years old	Frequently acceptable	Acceptable
Default, recent or unsatisfied	Usually declined	Acceptable, larger deposit
CCJ over 3 years old and satisfied	Often acceptable	Acceptable
Recent CCJ	Declined	Acceptable from day one with some lenders
Missed mortgage payments	Declined	Acceptable depending on how many and when
Debt Arrangement Scheme (DAS)	Declined while active	Some lenders consider once completed
Discharged trust deed or bankruptcy	Usually needs 6 years	From 1–3 years post-discharge
Payday loans	Often declined even if repaid	Generally acceptable

The single most important thing: do not scattergun applications

Every full mortgage application leaves a hard search on your credit file. Several in a short period looks like distress borrowing and makes the next lender more likely to decline — so a run of rejections actively makes your position worse.

The right sequence is: get your own credit file first, understand exactly what is on it, then make one application to a lender we already know will accept that profile.

Check your file before you apply

Credit files frequently contain errors — settled debts still showing as outstanding, duplicate entries, or defaults recorded at the wrong date. Correcting one wrong entry can move you from a specialist lender to a mainstream one, which is worth thousands over a fixed period.

Check all the main agencies, because lenders use different ones and the data differs between them.

Experian, Equifax and TransUnion each hold different data
Multi-agency reports (such as Checkmyfile) show all three in one place
Adverse entries drop off after six years from the date recorded, not from the date settled
You have a legal right to have inaccurate information corrected

The route back to mainstream rates

A specialist mortgage is a bridge rather than a destination. The usual plan is a two-year fixed rate with a specialist lender, during which you keep every payment on time and let the older adverse entries age.

At the end of that period, we remortgage you to a mainstream lender at a materially better rate. We will diarise that review and come back to you — you should not have to remember.

Request a free consultation

No fee for the initial conversation, and no obligation. We usually reply the same working day.

Frequently asked questions

Can I get a mortgage with a default in Scotland?

Yes. A satisfied default over three years old is often acceptable to mainstream lenders. A recent or unsatisfied default needs a specialist lender, typically with a 15% to 25% deposit and a higher rate for an initial period, after which you can usually remortgage to the mainstream.

Can I get a mortgage after a trust deed?

Yes, once discharged. A small number of specialist lenders will consider you from one year after discharge with a substantial deposit, more will consider you at three years, and by six years the entry drops off your credit file entirely and mainstream lenders open up again.

Does a Debt Arrangement Scheme stop me getting a mortgage?

While the DAS is active, effectively yes — lenders will not advance new borrowing to someone in a formal debt management arrangement. Once it has completed and been recorded as such, some specialist lenders will consider you, and the position improves steadily from there.

How much deposit do I need with bad credit?

It depends on severity and recency. Minor historic issues may need only 5% to 10%. Recent defaults or CCJs typically need 15% to 25%. Recent missed mortgage payments or a recent discharge usually need 25% or more.

Will being declined for a mortgage make things worse?

It can. Each full application leaves a hard search, and a cluster of searches in a short period signals distress to the next lender. That is the main argument for using a broker on an adverse case — we identify the lender that will accept your profile before an application is made, rather than after.

How long does bad credit stay on my file in the UK?

Six years from the date the entry was recorded — not from the date you settled it. Settling a default does not remove it, but it does change how lenders view it, and a satisfied entry is materially better than an outstanding one.