When you apply for a mortgage with a high street lender it will use a credit reference agency such as Experian or Equifax to determine your creditworthiness. If a search on your credit file reveals any problems, you may be given a poor rating or low credit score. As a result your application may be declined. An applicant’s ability to get a mortgage can be adversely affected by, but not limited to, any of the following;

• CCJ’s County Court Judgements
• Defaults i.e. missed payments on a loan or credit card
• Arrears
• Bankruptcy

Rest assured, many people have experienced credit difficulties at one time or another. Estimates suggest one in the five people have been turned down for a mortgage in the UK as a direct result of a low credit score.

However all is not lost as there is an ever increasing range of adverse credit mortgages coming onto the market place. These are specifically aimed at customers who have experienced past credit problems.