top of page
Holding Hands

Adverse lending

Often, borrowers find themselves in difficult financial circumstances which can make it a challenge to acquire a mortgage. Bankruptcies, county court judgement (CCJs), defaults and arrears all impact a borrower's ability to obtain a mortgage. However, at Hilton Finance, we believe that past difficulties should not prevent you from getting the mortgage that you deserve. We have worked with countless clients who have had some form of adverse credit and delivered solutions for them- against all odds. Our connections with specialist lenders, who are sympathetic to adverse credit, and experience in sub-prime cases means that we can effectively advise on your mortgage needs. 

​

​

1 

What is adverse credit?

Although there is no technical definition for adverse or bad credit, it may be defined as financial difficulties which an individual has experienced leaving them with lower credit worthiness. Since this poses a greater risk to lenders, the rates for adverse credit mortgages are often higher and criteria is more stringent. Nevertheless, it is still possible for applicants with poor credit history to obtain mortgages.

2

Causes of adverse credit

  1. Arrears- this can involve missing a payment entirely or paying it late. 

  2. Defaults- this usually occurs if arrears are not addressed and they are allowed to accumulate. 

  3. County court judgements (CCJs)- these can arise if you owe someone money and they take legal action against you demanding repayment. If the court rules a judgement against you, you are deemed to have a CCJ in your name.

  4. Individual voluntary agreements (IVAs)- an IVA is an arrangement between a debtor and their creditor(s) to facilitate the repayment of debts. Whilst you can still legally borrow under an IVA, your credit worthiness is severely harmed. 

  5. Bankruptcies- if a court declares someone to be bankrupt, they are deemed to be undischarged bankrupt for 12 months. This means that they cannot attain a mortgage at all during this period. However, thereafter, it may be possible for an undischarged bankrupt to obtain a mortgage.

3

Will lenders accept credit issues?

The good news is that an adverse credit history does not necessarily stop you from getting  mortgage. Whilst it may be considerably more difficult, it is not impossible and with a range of specialist, niche-market lenders available, who are more sympathetic to bad credit, we can help you obtain a mortgage against all odds. 

 

However, each case is unique and in order to gauge whether a mortgage is possible, speaking to an experienced broker becomes invaluable. So get in touch with us today for a free, no-obligation quote. 

bottom of page