Is it possible to get a mortgage with a bad credit history? The good news is that it could be… but it depends on certain factors. David Jackson runs through them in our latest reader Q&A
The Question
My boyfriend and I are looking for a home to buy together and just as we were about to apply for the mortgage, he admitted he’s got some problems with his credit history. He’s had some unpaid bills and credit card debt from a period in 2020 when he was made redundant.
He’s paying off the debt and he hasn’t missed any bills since he was employed again. But we are worried it will ruin our mortgage application. Can you confirm the impact this will have and if there are any specialists who can help us?
David’s Answer
Bad credit can affect your mortgage application, but how much depends on the severity and how recent it was.
The good news is that time plays a significant role—if your boyfriend’s bad credit is from 2020 and he’s had over three years of good credit behaviour since then, this will work in your favour.
Some lenders overlook bad credit that’s over three years old, especially if the debts were cleared a while ago. However, if the debt was only recently cleared, it could still pose a challenge as lenders usually consider credit history from the past six years.
It’s important to review his credit file to understand the extent of the issue. Whether the bad credit includes defaults, County Court Judgments (CCJs) or Individual Voluntary Arrangements (IVAs) will influence what options are available. If his credit has been healthy for the last few years, many lenders may be willing to work with you.
There are specialist lenders and independent mortgage advisers who focus on clients with adverse credit histories. They can help assess your situation and guide you to the most suitable mortgage options.
Make sure to consult one of these advisors to review your credit file and explore the best path forward.
Meet our expert…
David Jackson established Prestige Private Finance in 2014 after nearly two decades in the mortgage industry. With experience in London’s high-net-worth areas, David and his team offer empathetic and expert advice for your financial journey.
If you have a question for David please email kate.saines@emap.com or leave a message in the comments below.
