Adverse Credit

Adverse credit refers to negative marks on your credit file that indicate past financial difficulties. If you have adverse credit, it does not mean you cannot get a mortgage, but it does mean your options are more limited and the rates you are offered may be higher. The impact depends on the type of adverse event, how much was involved, how long ago it happened, and whether it has been satisfied.

Types of adverse credit

The most common types of adverse credit that affect mortgage applications are:

• Missed payments — Late or missed payments on credit cards, loans, or other accounts. One or two missed payments from several years ago may be overlooked by some lenders, but a pattern of late payments is a bigger concern.
• Defaults — When an account is formally closed by the lender due to non-payment. A default is more serious than a missed payment and typically needs to be at least 1 to 2 years old before mainstream lenders will consider you.
• County Court Judgments (CCJs) — A court order to repay a debt. CCJs significantly reduce your lender options, particularly if unsatisfied.
• Individual Voluntary Arrangements (IVAs) — A formal agreement to repay creditors over time. Most lenders require an IVA to be fully discharged before they will consider an application.
• Bankruptcy — The most severe form of adverse credit. Most lenders require at least 3 years, and often 6 years, since discharge.

How long adverse credit stays on file

Most adverse marks remain on your credit file for 6 years from the date they were registered. After 6 years, they drop off and are no longer visible to lenders. The older the adverse event and the smaller the amount, the less impact it has on your application. Some specialist lenders will consider applications with recent adverse credit, though the rates and LTV restrictions will be less favourable.

If you have adverse credit history, check your options using our bad credit mortgage calculator or see the adverse credit timeline to understand when your situation may improve.

Last updated: April 2026