Let’s be honest—getting a mortgage when you’ve got adverse credit can feel like an uphill struggle. But here’s the good news: lenders in 2025 are more flexible than ever. If you’ve had financial bumps along the way—missed payments, defaults, CCJs, IVAs, or even bankruptcy—it doesn’t mean you’re out of options. Mortgage criteria are evolving, and more lenders are willing to take a fair look at your situation.
At Mortgage Bridge, we specialise in helping people with bad credit get the mortgage they need. So, let’s break down everything you need to know about getting a mortgage with adverse credit in 2025—the latest lender criteria, tips to boost your chances, and what to expect when applying.
What Is Adverse Credit and How Does It Impact Your Mortgage Application?
Before we jump into lender criteria, let’s clear up what ‘adverse credit’ actually means. If any of these sound familiar, you might fall into this category:
- Missed or late payments on credit cards, loans, or mortgages
- Defaults registered on your credit file
- County Court Judgments (CCJs)
- Debt Management Plans (DMPs) or Individual Voluntary Arrangements (IVAs)
- Bankruptcy or repossession in your history
- High credit usage or reliance on payday loans
But don’t panic! Each lender assesses these differently. A rejection from one doesn’t mean you won’t find another willing to lend.
What Are the Latest Mortgage Lender Criteria in 2025?
Lenders are shifting how they assess applications, moving away from rigid rules and looking at the bigger picture. Here’s what’s changed:
1. Do Mortgage Lenders Still Care About Credit Scores?
Yes, but they’re not the be-all and end-all. Many lenders now take a more balanced approach, considering:
- Your income and overall affordability
- The reason behind your adverse credit
- How recent and severe your credit issues are
Some specialist lenders don’t rely on credit scores at all. Instead, they assess applications on a case-by-case basis.
2. How Long Do Credit Issues Stay on Your File?
Lenders have what’s known as a ‘credit issue window.’ Basically, the older your credit issues, the less impact they’ll have. Here’s what most lenders look at in 2025:
- CCJs and defaults over three years old are usually less of an issue.
- IVAs and bankruptcies discharged for five years or more have a much smaller impact.
- A clean record for the last 12 months massively boosts your chances.
3. How Much Deposit Do You Need for an Adverse Credit Mortgage?
Deposits act as a safety net for lenders. The more you put down, the better your chances. Typical deposit requirements in 2025 are:
- 10% deposit for minor credit issues (e.g., a couple of late payments)
- 15-20% deposit for more serious issues (e.g., CCJs, defaults)
- 25%+ deposit for major cases (e.g., past bankruptcy or repossession)
A bigger deposit can also help you secure a better interest rate.
4. How Do Lenders Assess Your Income and Affordability?
Affordability is becoming just as important as credit history. Lenders will look at:
- Your debt-to-income ratio (how much of your income goes to debts)
- How stable your employment or self-employment history is
- Your monthly disposable income after essential expenses
Even with past credit problems, strong affordability can swing things in your favour.
5. Should You Go for a High-Street Bank or a Specialist Lender?
High-street banks are still cautious with adverse credit applicants. However, specialist lenders exist to help people in exactly this position. They:
- Assess applications case by case
- Take a realistic approach to past credit issues
- Offer more flexible lending criteria, especially if you had financial difficulties due to things like redundancy or illness
Using a mortgage broker (like us!) can help match you with the right lender.
How Can You Improve Your Chances of Getting a Mortgage in 2025?
Even with adverse credit, there are ways to improve your chances of approval. Here’s how:
1. What Can You Do to Boost Your Credit Score?
- Check your credit file on Experian, Equifax, and TransUnion.
- Correct any mistakes or outdated info.
- Register on the electoral roll.
- Keep your credit usage below 30%.
- Set up direct debits to avoid missed payments.
2. Does a Bigger Deposit Help?
Absolutely. A bigger deposit = lower risk for lenders = more chance of approval. If you can, aim for at least 15-20%.
3. Why Does Financial Stability Matter to Lenders?
- Stick with the same job for at least six months before applying.
- Keep your income steady—especially if self-employed.
- Avoid unnecessary new credit applications.
4. Should You Use a Mortgage Broker?
Yes! A broker (like Mortgage Bridge) can:
- Match you with the best lenders for adverse credit.
- Help package your application to increase your chances of approval.
- Save you time, stress, and potential rejections.
What Mortgage Options Are Available for Adverse Credit Applicants?
Even with a rocky credit history, there are plenty of mortgage options:
- Fixed-Rate Mortgages – Lock in a consistent monthly payment.
- Tracker Mortgages – Rates fluctuate with the Bank of England base rate.
- Guarantor Mortgages – A family member helps secure your loan.
- Joint Mortgages – Boost your affordability by applying with someone else.
- Specialist Bad Credit Mortgages – Tailored for those with credit issues.
The best option depends on your situation, but we can help you figure that out.
What Common Mistakes Should You Avoid?
- Applying to multiple lenders at once – This can tank your credit score.
- Not checking your credit report – Errors could be hurting your chances.
- Not saving enough for a deposit – The more you have, the better.
- Ignoring affordability checks – Make sure you can actually afford the mortgage.
- Not getting expert advice – A broker can help avoid unnecessary rejections.
Final Thoughts: Can You Get a Mortgage with Adverse Credit in 2025?
Short answer: Yes! Getting a mortgage with adverse credit isn’t as difficult as it used to be, especially with specialist lenders adapting to the market. Sure, it takes a bit more planning and effort, but it’s absolutely possible.
By improving your credit score, saving a bigger deposit, and working with a broker like Mortgage Bridge, you can massively increase your chances of getting approved. Whether you’ve had a few late payments or more serious credit issues, we can help find the right lender for you.
At Mortgage Bridge, we specialise in helping people with bad credit get the mortgage they deserve. If you’re unsure where to start, get in touch today, and let’s explore your options together!