A historic CCJ, default or period of arrears can remain visible long after a borrower’s circumstances have improved. New analysis of FCA data suggests that lenders are completing more mortgages for borrowers with impaired credit than at any point since 2008, making it sensible to revisit cases previously treated as closed.
Mortgage Solutions reports that 10,089 mortgages were sold to borrowers with impaired credit histories during 2025. That was 23% higher than the 8,183 recorded in 2024 and the first annual total above 10,000 since 2008.
Momentum continued in 2026. Broadstone’s analysis recorded 5,965 sales in the first six months, including 3,098 during the second quarter. Q2 was the strongest quarter since Q3 2008, when 6,540 such mortgages were sold.
The figures exclude internal product transfers, second-charge mortgages, further advances and business loans. They therefore describe new first-charge mortgage and remortgage activity within the reporting scope—not every way in which a borrower with historic credit problems may raise or restructure finance.
The Headline Data
10,089: impaired-credit mortgage sales during 2025.
23%: the increase from 8,183 sales in 2024.
5,965: sales completed during the first half of 2026.
3,098: Q2 2026 sales—the highest quarterly total since Q3 2008.
What Does “Impaired Credit” Actually Mean?
Under the reporting criteria described by Financial Reporter, an impaired credit history can include significant arrears on secured or unsecured borrowing, recent County Court Judgments, an Individual Voluntary Arrangement or bankruptcy. That is a specific regulatory reporting category, not a casual description of anyone whose credit file is less than perfect.
A single historic late payment is not the same as an unsatisfied recent default. A small communications default caused by a billing dispute is not the same as repeated missed mortgage payments. An IVA discharged several years ago is not the same as an active debt arrangement.
Lenders may treat each differently. The result depends on the nature of the event, when it occurred, its value, whether it is satisfied, the reason behind it and what the borrower’s finances look like now.
The Market Is Becoming More Individualised
The rise in completed lending does not prove that lenders are ignoring risk. It suggests that a larger specialist market is assessing cases which may once have failed a high-street credit score or rigid policy rule.
Improved data, automated underwriting and more detailed affordability analysis can help lenders distinguish between a temporary historic shock and ongoing financial vulnerability. A borrower whose credit suffered during divorce, illness, the pandemic or a period of rapidly rising household costs may now have stable employment, recovered income and a clean recent payment record.
The assessment is still evidence-led. A plausible explanation does not override poor affordability, current arrears or unsustainable commitments. It helps the lender understand context alongside the numbers.
Why the Detail of the Credit Event Matters
“Adverse credit” is too broad to be useful when sourcing a mortgage. An adviser needs to establish exactly what happened. That includes the creditor, event type, registration date, original amount, outstanding balance, satisfaction date and whether other credit was maintained throughout the same period.
Recency often matters. Some lenders require an event to be older than a specified period; others may consider more recent issues at a lower loan-to-value or with different pricing. The number and pattern of events can be as important as their individual value.
Current conduct matters too. Recent rent or mortgage payments, bank-statement management, unsecured debt and use of overdrafts help show whether the historic problem has ended or remains part of a wider pattern.
| Factor | What a Lender May Examine | What Helps the Review |
|---|---|---|
| Type of event | CCJ, default, arrears, DMP, IVA, bankruptcy or another credit issue. | A complete credit report and accurate explanation. |
| Age and status | When it occurred, whether it is satisfied and the recent conduct since. | Settlement evidence and a clean, evidenced payment record. |
| Value and frequency | Size, number, creditor type and whether problems formed a pattern. | Context supported by statements and documents. |
| Current position | Income, expenditure, debts, deposit, equity and affordability. | Up-to-date income evidence and a realistic household budget. |
| Property and loan | Purpose, valuation, loan-to-value, construction and security. | A suitable property and proportionate borrowing request. |
A High Earner Can Still Need Specialist Credit Underwriting
Income alone does not erase an adverse credit event. Equally, an old event does not necessarily describe a borrower’s ability to maintain a mortgage today. A professional earning £180,000 with a 25% deposit and two missed payments during a divorce presents a different risk from a borrower whose commitments remain unaffordable.
Self-employed applicants may also have strong current trading but historic difficulties from a disrupted business period. The lender may need accounts, tax calculations, bank statements and an explanation of the event, while applying its own method to sustainable income.
The adviser’s job is to present the complete case accurately. That means neither hiding the history nor allowing one label to obscure improved circumstances.
A Decline Is a Starting Point for Diagnosis
Before applying elsewhere, establish why the previous lender declined. Credit score, policy, affordability, property, documentation and application quality require different solutions. Repeating the same case across multiple lenders can create more searches without improving the outcome.
The Remortgage Opportunity Is Particularly Important
Some homeowners have remained with their existing lender because a historic credit issue led them to assume that no external remortgage was available. They may have accepted repeated product transfers without testing the wider market.
A review may now be justified if the issue has aged, been satisfied, dropped from the credit file or been followed by materially stronger conduct. Increased equity, lower unsecured debt or improved income may also change the options.
Moving lender is not automatically better. The comparison must include the existing lender’s product transfer, new-lender interest rate, arrangement and valuation fees, legal costs, early repayment charges, term, repayment method and total cost over the chosen period. For some borrowers, staying put will remain correct. The point is to reach that conclusion after comparison.
Previously Declined Buyers Should Recheck Readiness Before Reapplying
A stronger market does not mean an immediate application is always sensible. Obtaining a current credit report first can reveal reporting errors, outstanding balances or dates that differ from memory. Where possible, borrowers should avoid new unsecured commitments and maintain every payment while preparing.
Deposit can materially affect lender choice and price. Waiting to reduce the loan-to-value, settle an account or place more time between the application and the event may improve the outcome. In other cases, delay is unnecessary because an appropriate lender already accepts the profile.
A decision in principle is not a final offer and can involve a credit search. The sourcing strategy should therefore be based on verified information before the first submission.
Technology May Improve Speed, but It Does Not Remove Complexity
Specialist lender Precise has separately launched a new residential platform supporting adverse-credit assessment and complex residential applications. During its pilot, average application-to-offer times were almost 30% lower than on its previous platform, and some cases reportedly reached formal offer within 24 hours.
That is evidence that parts of specialist underwriting are becoming more efficient. It is not a universal service level or a promise that an impaired-credit application will complete quickly. Complex income, valuation issues, missing documents and the nature of the credit history can still extend the timetable.
Technology works best when the case is correctly packaged from the outset. A precise credit timeline, consistent documents and a clear explanation reduce avoidable questions.
The Numbers Do Not Mean “Anyone Can Get a Mortgage”
The market data records successful sales, not declined applications. It does not reveal the deposit, rate, income or individual credit profile behind every completion. Nor does it mean that all lenders have the same appetite.
Borrowing must remain affordable now and under the lender’s assessment. Specialist products can carry higher rates or fees, and accepting an expensive mortgage merely to secure approval may not be appropriate. The cost should be considered alongside the borrower’s objectives and a realistic future refinance plan.
Where finances remain under pressure, taking additional secured debt can increase risk. Independent debt advice may be more appropriate before a mortgage application.
Previously Declined Residential Review
If a CCJ, default, historic arrears, DMP, IVA, bankruptcy or automated credit score stopped a purchase or remortgage during the last two years, recheck the verified credit position, current income, affordability, deposit or equity and lender market. The previous answer may still be right—but it should not be assumed.
How Willow Private Finance Can Help
Willow can review purchase and remortgage cases involving historic credit problems across the whole mortgage market, including specialist lenders that assess the circumstances behind an event rather than relying solely on a mainstream credit score.
We establish the full credit timeline, current income, expenditure, debts, deposit or equity, property, borrowing requirement and intended term. We can then identify whether an application appears realistic now, whether preparation could improve the position or whether waiting may produce a better outcome.
No broker can guarantee acceptance. The practical value is avoiding assumptions, unnecessary applications and poorly matched lenders while comparing available terms on total cost and suitability.
Did an Old Credit Problem Stop Your Mortgage or Remortgage?
The specialist market has changed, and the age, value and cause of the event matter. A fresh review can establish whether today’s options differ from the answer you received before.
Willow can assess the complete case before deciding whether and where an application should be made.
Arrange a Residential Mortgage Review →Frequently Asked Questions
What borrowers should know before revisiting an adverse-credit mortgage case.
Can I get a mortgage with a CCJ or default?
Potentially. Lenders assess the type, amount, date, status and explanation for the credit event alongside deposit, income, affordability and current conduct. Acceptance and terms vary considerably, so a case-specific review is needed.
What does impaired credit mean in the reported FCA data?
The reporting definition can include significant secured or unsecured arrears, recent County Court Judgments, an Individual Voluntary Arrangement or bankruptcy. It should not be read as meaning that every minor historic late payment is included.
Does the increase in sales mean lenders have relaxed their standards?
No. The figures show more completed lending within the category, not guaranteed acceptance or abandoned affordability checks. Specialist lenders still assess sustainable affordability, credit history, deposit, income, property and the full application.
Can I remortgage if historic credit problems kept me with my current lender?
It may be worth reviewing. The age and status of the credit issue, improved finances, equity and current lender criteria can change the available options. Any comparison should include fees, early repayment charges and total cost, not only the rate.
What information helps an adverse-credit mortgage assessment?
A current credit report, dates and values of each event, evidence that debts are settled or being maintained, an explanation of what happened, recent bank statements, income evidence, deposit or equity details and a realistic monthly budget help establish the position.