What Is an Adverse Credit Score and How Does It Affect Borrowing?
An adverse credit score can sound worrying — but it doesn’t mean you’re stuck or unable to borrow. It simply means your credit history shows some signs of financial difficulty, such as missed payments, defaults, or higher debt levels.
At Mortgage Bridge, we specialise in helping clients with adverse credit find mortgage options that suit their circumstances. In this guide, we’ll explain what an adverse credit score really means, how it impacts your ability to borrow, and what you can do to turn things around.
What Does an Adverse Credit Score Mean?
An adverse credit score means that your credit file includes information that suggests you’ve had problems managing credit in the past. This might include missed payments, defaults, or even formal debt arrangements.
Credit reference agencies like Experian, Equifax, and TransUnion each use their own scoring systems — so the number you see can vary. However, they all measure the same thing: your past ability to handle borrowing responsibly.
Here’s what typically counts as adverse credit:
- Missed or late payments on credit cards, loans, or bills
- Defaults or County Court Judgments (CCJs)
- Debt Management Plans (DMPs)
- Individual Voluntary Arrangements (IVAs)
- Bankruptcy or repossession
If you have one or more of these on your credit file, lenders may class your score as “adverse.” But don’t panic — this doesn’t automatically prevent you from getting a mortgage or other credit.
How Does Adverse Credit Affect Borrowing?
When you apply for credit — whether that’s a mortgage, loan, or credit card — lenders use your credit score to assess risk.
If your score shows adverse entries, they’ll see you as higher risk, meaning they might:
- Offer smaller loan amounts
- Require a larger deposit
- Charge higher interest rates
- Ask for extra evidence of affordability
That said, specialist lenders exist precisely for this reason. They take a more flexible approach, focusing on your current situation rather than just your past mistakes.
At Mortgage Bridge, we regularly help clients with adverse credit who have been turned away by their banks. Often, it’s about matching you to the right lender rather than changing who you are.
How Far Back Do Credit Issues Matter?
Credit history doesn’t last forever. Most negative marks are removed from your file after six years, even if the debt itself has been settled earlier.
Lenders tend to focus on:
- Recency: Issues from five years ago matter less than ones from last year.
- Severity: One late payment isn’t as serious as a default or CCJ.
- Recovery: Showing consistent payments since a problem builds trust.
If your adverse credit is older and you’ve maintained good financial habits since, your chances of mortgage approval are much higher.
What Is a “Good” Credit Score for Borrowing?
Each lender sets its own internal criteria, so there isn’t a universal “pass mark.” However, as a general guide:
| Credit Agency | Excellent | Good | Fair | Poor |
|---|---|---|---|---|
| Experian | 881–999 | 721–880 | 561–720 | 0–560 |
| Equifax | 811–1000 | 671–810 | 531–670 | 0–530 |
| TransUnion | 781–850 | 661–780 | 566–660 | 0–565 |
A fair or poor score doesn’t automatically disqualify you from borrowing — it just narrows the pool of lenders who’ll consider your application.
Can You Get a Mortgage with an Adverse Credit Score?
Yes, absolutely.
A mortgage with adverse credit is entirely possible, and we arrange these every day. Specialist lenders assess your real affordability — not just your credit score — and consider factors like:
- How long ago your credit issues occurred
- The size of your deposit
- Your income and job stability
- Whether your financial behaviour has improved
If you’ve kept up with bills and other commitments recently, that can outweigh older credit issues in the eyes of many lenders.
We go into this topic further in our guide on Can I Get a Mortgage After Bankruptcy?, which explains how lenders assess previous financial difficulties.
How Much Deposit Do You Need for an Adverse Credit Mortgage?
If you have an adverse credit score, you’ll likely need a larger deposit than someone with a clean file.
Typical deposit ranges are:
- 10–15% for mild credit issues (missed payments, small defaults)
- 15–25% for severe issues (CCJs, IVA, bankruptcy)
A larger deposit reassures lenders that you’re committed and helps reduce their risk, often unlocking better rates in return.
If raising a deposit feels challenging, options like family-assisted mortgages or shared ownership can help bridge the gap.
What Interest Rates Can You Expect?
Interest rates for adverse credit mortgages are usually higher than standard rates. This is because lenders build in extra protection for perceived risk.
However, these differences aren’t always extreme — especially if your issues are older or your finances have stabilised. You can often remortgage to a better rate after a year or two of reliable repayments.
That’s part of the long-term strategy we help clients build: start where you can, then improve as your credit strengthens.
How Can You Improve an Adverse Credit Score?
Improving your score takes time, but small, consistent actions make a big difference:
- Check all three credit reports for errors and get them corrected.
- Register on the electoral roll at your current address.
- Make all payments on time, no matter how small.
- Keep credit balances low, ideally under 30% of your limits.
- Avoid new borrowing just before applying for a mortgage.
- Use a credit builder card responsibly to show positive activity.
The aim is to demonstrate control and stability — that’s what lenders want to see most.
We also cover this topic in detail in our guide to getting a mortgage with a Debt Management Plan, which explains how repayment behaviour shapes your credit profile.
What If You’ve Been Declined by a High Street Bank?
If a high street bank has declined your application, you still have options.
Mainstream banks rely heavily on automated credit scoring systems that often reject applicants for minor issues. Specialist lenders, on the other hand, use manual underwriting — real people reviewing your case based on overall circumstances.
At Mortgage Bridge, we work directly with these lenders to present your situation clearly, highlighting the positive steps you’ve taken. Many of our clients are approved within weeks after being turned away elsewhere.
How Mortgage Bridge Can Help
At Mortgage Bridge, we understand that credit problems can happen to anyone. Whether caused by redundancy, illness, or a tough patch in life, we believe your past shouldn’t define your future.
We’ll:
✅ Review your credit and income in detail
✅ Match you with lenders suited to your profile
✅ Explain deposit and rate expectations upfront
✅ Support you from initial enquiry to approval
If you’re ready to move forward, we’re here to guide you every step of the way. Let’s explore your options together.
Final Thoughts
An adverse credit score isn’t the end of the road — it’s just a starting point for rebuilding and regaining financial stability.
With the right support, preparation, and lender, you can still achieve homeownership or refinancing goals.
At Mortgage Bridge, we specialise in helping clients with complex credit histories find solutions that work. We’ll help you understand your credit, improve where possible, and secure the right mortgage for your situation.
We’re here whenever you’re ready to take that next step.