Mortgages for Properties with Previous Subsidence When You Have Credit Issues

Obtaining mortgages for properties with previous subsidence when you have credit issues can be more complex than a standard mortgage application, but it is often still possible. Lenders assess both the property’s structural history and your financial circumstances before deciding whether to lend.

If the subsidence has been professionally repaired and your credit problems are historic, there may still be suitable mortgage options available. Understanding what lenders look for can help you prepare a stronger application.

Can You Get a Mortgage on a Property That Has Had Subsidence?

Yes.

Many lenders will consider properties that have experienced subsidence, particularly where the movement has been fully investigated, repaired and certified as stable.

Each lender has its own underwriting policy, and some are more comfortable with repaired subsidence than others.

What Is Subsidence?

Subsidence occurs when the ground beneath a property’s foundations moves, causing part of the building to sink.

Common causes include:

• Clay soil shrinking during prolonged dry periods.
• Tree roots affecting soil moisture.
• Leaking drains washing away supporting ground.
• Historic mining activity.
• Poor ground conditions.

Not all cracking indicates subsidence. A structural survey is usually required to identify the cause.

Why Does Previous Subsidence Concern Mortgage Lenders?

Lenders want confidence that the property provides suitable security throughout the mortgage term.

They typically assess:

• Whether the subsidence has been fully repaired.
• The cause of the movement.
• Whether the issue is ongoing.
• The quality of repair work.
• Availability of suitable buildings insurance.
• The property’s future resale potential.

If professional repairs have resolved the issue and there is no continuing movement, many lenders may be more willing to consider the application.

How Do Credit Issues Affect the Application?

Historic credit issues do not automatically prevent you from obtaining a mortgage.

Lenders often review:

• Missed payments.
• Defaults.
• County Court Judgments (CCJs).
• Debt Management Plans.
• Individual Voluntary Arrangements (IVAs).
• Previous bankruptcy.

Most lenders focus on the overall picture, including how long ago any credit problems occurred and whether your finances have remained stable since.

Will You Need a Larger Deposit?

Possibly.

Where both the property and the applicant present additional lending considerations, a larger deposit may improve lender choice.

Typical expectations may include:

• 10% to 15% where repairs were completed some time ago and adverse credit is historic.
• 15% to 25% where credit issues are more recent or the property presents greater structural risk.
• Higher deposits where lender policy requires additional security.

Deposit requirements vary according to each lender’s criteria.

What Evidence Might Lenders Request?

Additional documentation is often required when purchasing a property with previous subsidence.

This may include:

• Structural engineer’s reports.
• Evidence of completed repairs.
• Guarantees or warranties for remedial work.
• Buildings insurance information.
• The mortgage valuation report.

Providing complete documentation early can help reduce delays during underwriting.

Will Buildings Insurance Be More Difficult?

Insurance may require additional consideration.

Some insurers specialise in properties that have previously experienced subsidence. Lenders usually require confirmation that suitable buildings insurance can be arranged before completion.

Insurance availability can therefore influence the overall mortgage process.

What Will Mortgage Lenders Assess?

Alongside the property’s structural history, lenders usually review:

• Your income.
• Employment status.
• Affordability.
• Your deposit.
• Bank statements.
• Your credit history.
• The property’s current condition.

No single factor automatically determines the outcome. Instead, lenders assess the application as a whole.

How Can You Improve Your Chances?

Preparation can strengthen your mortgage application.

• Save the largest deposit possible.
• Maintain all current credit commitments.
• Review your credit reports for accuracy.
• Gather structural reports before applying.
• Obtain insurance quotations where appropriate.
• Avoid unnecessary new borrowing before your application.

Being organised can help lenders assess the application more efficiently.

Will Mortgage Rates Be Higher?

Possibly.

Mortgage pricing depends on several factors, including:

• Loan-to-value ratio.
• Credit history.
• The property’s structural history.
• Income stability.
• Lender policy.

Applicants purchasing properties with previous subsidence or historic adverse credit may initially have fewer product choices. However, if financial circumstances improve over time, remortgaging onto more competitive products may become possible.

Frequently Asked Questions

Can every lender offer mortgages on properties with previous subsidence?

No. Some lenders have stricter policies regarding structural movement, while others are more willing to consider repaired properties.

Does repaired subsidence make a difference?

Yes. Professionally repaired subsidence with supporting documentation is generally viewed more positively than unresolved structural movement.

Will bad credit automatically prevent approval?

No. Many lenders consider historic adverse credit alongside affordability, deposit size and the property’s overall suitability.

Do I need a structural survey?

Many buyers choose to obtain a detailed structural survey where previous subsidence has been identified, although lender requirements vary.

Key Takeaways

Getting a mortgage on a property with previous subsidence while having credit issues is often achievable, although lender choice may be more limited. Both the structural history and your financial profile influence the lender’s decision.

Providing comprehensive documentation, maintaining stable finances and saving a larger deposit can all improve your chances of securing a suitable mortgage.

You can learn more about how lenders assess adverse credit and non-standard properties in our other guides.

If you want personalised advice, speaking to a regulated mortgage adviser may help.

This guide provides general information only. Personalised mortgage advice should always come from a regulated mortgage adviser.