What lenders actually look at
Every lender has its own rules, but the same factors drive them all:
- Type of problem. A couple of late payments on a phone contract is minor. A default or CCJ is more serious. A debt management plan, IVA or bankruptcy is more serious again.
- Age. Most specialist lenders ignore issues older than three years, and many mainstream lenders ignore those older than six. Recent problems (under 12 months) are the hardest.
- Amount and whether it's satisfied. A settled £300 default from a utility company is treated very differently from an unsatisfied £5,000 CCJ.
- Mortgage arrears. Missed mortgage payments are taken more seriously than any other kind.
The realistic picture
| History | What's usually possible |
|---|---|
| Late payments, no defaults | Often mainstream lenders, standard rates, 5–10% deposit |
| Defaults or CCJs over two years old, satisfied | Mainstream or near-prime lenders, slightly higher rates, 10–15% deposit |
| Defaults or CCJs within two years | Specialist lenders, higher rates, typically 15–25% deposit |
| Active or recent DMP / IVA | Specialist lenders only; usually need the arrangement to be conducted well for 12+ months, or completed |
| Bankruptcy | Usually possible from three years after discharge with specialist lenders; mainstream from six |
Rates from specialist lenders are higher, but most people remortgage back to a mainstream lender after two or three years of clean conduct, so the premium is temporary.
Before you apply
- Get your credit reports from all three agencies (Experian, Equifax and TransUnion). Lenders use different ones.
- Settle what you can, and get the entries updated to show it.
- Register on the electoral roll at your current address.
- Don't make lots of applications. Each hard search is recorded, and a string of declines makes the next lender nervous.
This is the situation where going direct to a bank does the most damage. A decline goes on your file. A broker who works with adverse credit matches you to a lender likely to say yes before any application is made.
Common questions
Can I get a mortgage with a default in Northern Ireland?
Usually, yes. The lender's answer depends on how old the default is, how much it was for, whether it's been paid, and the size of your deposit. Defaults over two or three years old are workable with many lenders.
Will checking my credit report hurt my score?
No. Looking at your own report is a soft search and has no effect. Applications for credit are hard searches, which are visible to lenders.
Does my partner's bad credit affect a joint mortgage?
Yes, the application is assessed on both of you. Sometimes it's better to apply in one name if the other's income supports it alone, but that has legal implications for ownership and should be discussed with the broker and solicitor.
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