Adverse Credit — pricing factors (UK)
What lenders weigh when pricing adverse credit cases — not live quotes. Use our calculators and speak to an FCA-authorised broker for firm-specific numbers.
Mortgage118 does not publish indicative rate bands. Lender pricing changes daily and depends on your profile.
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What lenders look at
These factors shape whether a adverse credit case is accepted and how it is priced. They are not a quote.
- Minimum age 21, maximum age 70-75
- Demonstrated improvement in financial situation
- Stable employment and income
- Adequate deposit to offset credit risk
- No recent adverse credit events
- Suitable residential property type
For indicative numbers, use our mortgage calculators and compare brokers who specialise in adverse credit.
What moves your rate up or down
These are the strongest factors lenders weigh when setting pricing.
- Specialist lenders who understand credit issues
- Flexible lending criteria for credit-impaired borrowers
- Higher deposit options to offset credit risk
- Professional support throughout the application process
- Access to alternative lending solutions
Fee breakdown
Common charges to plan for alongside the headline rate.
Arrangement Fee
Lender product fee
1% - 3%
higher for specialist lending
Valuation Fee
Property survey
£300 - £1,500
one-time cost
Legal Fees
Conveyancing costs
£1,000 - £2,000
plus disbursements
Broker Fee
Specialist arrangement
£500 - £1,000
or percentage of loan
Rate FAQs
Quick answers to common pricing questions.
What credit issues qualify for adverse credit mortgages?+
Adverse credit mortgages are available for borrowers with CCJs, defaults, missed payments, bankruptcy, IVAs, or other credit problems. The severity and recency of issues will affect the rates and terms available, with some lenders specialising in specific types of credit problems.
Are adverse credit mortgage rates much higher than standard rates?+
Yes, adverse credit mortgage rates are typically 2-4% higher than standard rates due to the increased risk. However, rates have improved significantly in recent years, and specialist lenders offer competitive rates for borrowers who can demonstrate financial recovery.
Can I improve my chances of approval with a larger deposit?+
Yes, a larger deposit can significantly improve your chances of approval and may secure better rates. Some lenders offer tiered rates based on deposit size, with larger deposits reducing the perceived risk and improving terms.
Can I get an adverse credit mortgage with a guarantor?+
Some lenders offer guarantor mortgages for adverse credit borrowers, where a family member or friend guarantees the loan. This can help secure better rates and terms, though the guarantor must meet strict financial criteria.
What are the fees for adverse credit mortgages?+
Adverse credit mortgages may have higher arrangement fees, valuation fees, and legal costs due to the additional work required. However, some lenders offer fee-free or reduced-fee products to attract borrowers with minor credit issues.
Can I get an adverse credit mortgage with an IVA?+
Yes, some lenders will consider applications from borrowers with completed IVAs, though you'll typically need to wait 1-2 years after completion. The terms may be more restrictive, and you'll need to demonstrate financial recovery since the IVA.