Many people assume that a poor credit score automatically disqualifies them from getting a mortgage—but that’s simply not the case in 2025. While high street lenders may turn away borrowers with adverse credit, a growing number of specialist lenders are providing solutions tailored to complex credit profiles.

Whether you’ve had missed payments, County Court Judgements (CCJs), defaults, or even past bankruptcy, lenders are increasingly using a more nuanced approach. The key is understanding what type of credit issue you have, how recent it is, and how it’s viewed by lenders.

What Counts as Poor Credit?

“Poor credit” is a general term that covers a range of issues, including:

• Missed or late payments on credit cards, loans, or mortgages
• Defaults on financial agreements
• County Court Judgements (CCJs)
• Individual Voluntary Arrangements (IVAs)
• Debt Management Plans (DMPs)
• Bankruptcy or repossession
• High credit utilisation or thin credit history

Some of these may have little impact after a few years, while others can remain on your credit file for up to six years.

What Lenders Look For in 2025

The credit landscape has evolved in recent years. Lenders now consider:

• When the issue occurred – Older issues (3+ years) tend to carry less weight than recent ones.
• The type and severity of credit issue – A satisfied default is viewed differently from an unsatisfied one. A minor missed mobile bill is different to mortgage arrears.
• The overall credit trend – Lenders favour applicants who have rebuilt their credit and demonstrated improved financial habits.
• Affordability and income stability – Strong income and manageable outgoings can sometimes outweigh poor credit history.
• The deposit – A higher deposit (15–30%+) can significantly increase your chances with specialist lenders.

High Street vs Specialist Lenders

While mainstream banks tend to have strict credit score requirements, specialist lenders (often accessible only via a broker) assess cases manually or through adverse credit criteria.

Specialist lenders may:

• Ignore older CCJs or defaults
• Consider applicants with recent DMPs or IVAs
• Offer mortgages soon after bankruptcy discharge
• Allow missed payments on unsecured credit, provided mortgage history is clean

However, expect higher interest rates, stricter income verification, and larger deposit requirements than standard mortgages.

Real-World Example

At Willow, we recently supported a client who had:

• 2 CCJs (satisfied) from 2021
• Several missed payments on credit cards in 2022
• £12,000 in unsecured loan debt
• Self-employed income of £85,000 p.a.

While high street lenders declined, we secured a 75% LTV mortgage at a competitive rate with a specialist lender that accepted CCJs older than 24 months and considered the client’s recent financial recovery.

Can You Improve Your Chances?

Yes. Here are a few strategies:

• Check your credit report from all three agencies (Experian, Equifax, TransUnion)
• Correct any errors or outdated records
• Satisfy old CCJs or defaults where possible
• Avoid new credit applications for at least 3–6 months before applying
• Work with a whole-of-market broker who understands how different lenders treat credit history

The Importance of the Right Broker

Many borrowers with adverse credit are declined simply because they’ve approached the wrong lender. A good broker will know:

• Which lenders accept unsatisfied CCJs
• How recent arrears are treated
• What deposit thresholds unlock better rates
• Which lenders use credit scoring vs manual underwriting

At Willow, we deal with bad credit cases every week—from first-time buyers to experienced landlords—and we know how to position your case for success.

📞 Want Help Navigating Today’s Market?

Book a free strategy call with one of our mortgage specialists.

We’ll help you find the smartest way forward—whatever rates do next.