WHERE TO START
Check Your Credit File Before Anything Else
Most people with adverse credit assume the mortgage market is closed to them. It isn’t. But your starting point matters enormously — and the single best first step is to check your credit file before anything else.
Why check your file first? Because many people discover errors on their credit file — incorrect defaults, accounts wrongly associated, electoral roll omissions — that can be challenged and removed. You can check all three agencies (Experian, Equifax, TransUnion) via checkmyfile.com. If everything is accurate, you will at least know exactly what you are working with.
BUILD YOUR DEPOSIT — A Larger Deposit Is Your Single Most Powerful Tool
In the standard mortgage market, the difference between a 5% and a 10% deposit is meaningful. In the bad credit mortgage market, it can be the difference between getting a mortgage at all and being declined by every lender on the panel.
USE A SPECIALIST BROKER
Why a Specialist Broker Makes the Difference
Standard mortgage advisers typically work with a panel of high-street lenders. These lenders have tight, automated credit scoring systems that will decline most applicants with adverse credit — even when specialist lenders would have accepted them.
A specialist bad credit broker like Alexander Southwell has direct relationships with lenders who do not appear on comparison sites and who assess applications on a case-by-case basis. We know which lenders will look at a CCJ from two years ago, which will consider a recent default, and which have recently changed their criteria. That knowledge is the difference between a declined application and a completed mortgage.
How far back do lenders look? Most look at the last 6 years of your credit file. Adverse entries older than 6 years drop off your file entirely. Within 6 years, age and severity both matter.
Will applying affect my credit score? Yes — a full mortgage application triggers a hard search. An Agreement in Principle may use a soft search and not affect your score. Never scatter applications across multiple lenders without advice.
Should I pay off old defaults before applying? Satisfied defaults are viewed more favourably than outstanding ones. If the default is small and old, settling it before applying is usually worthwhile and can improve your options.
Can I get a mortgage with a recent CCJ? Possibly — with a specialist lender, a satisfied CCJ, and a 20–25%+ deposit. Timing and lender selection are critical.
