It's one of the most common worries we hear from people looking to buy a home or remortgage: does a poor credit history mean the door is closed? The honest answer is no, not necessarily. A less-than-perfect credit history doesn't automatically rule you out of getting a mortgage.
"Bad credit" can cover a range of situations, including missed or late payments, County Court Judgments (CCJs), defaults, debt management plans, historic bankruptcy or an Individual Voluntary Arrangement (IVA), and payday loans. Every one of these looks different to a lender depending on how long ago it happened, how serious it was, and whether it's been resolved.
High street banks tend to have strict, one-size-fits-all lending criteria. But they're not the only option. Specialist lenders exist for exactly this situation, taking a case-by-case approach that looks at your full circumstances rather than just a credit score. You may be offered a different rate, or need a larger deposit, depending on your circumstances - but that's not the same as being ruled out altogether.
"We speak to people every week who assume a missed payment or a CCJ means the door's closed. In many cases it isn't - it's always worth getting a proper assessment rather than assuming the worst."
The key is to get a proper assessment rather than assuming the worst. What you qualify for will depend on things like how recent the issue was, how it's been managed since, and your current financial position - and a broker who understands the specialist lending market can tell you honestly where you stand and what your options are.
Your property may be repossessed if you do not keep up repayments on your mortgage.