What Is an Adverse Credit Score and How Does It Affect Borrowing?

If you’ve ever been told you have an adverse credit score, it can sound far more serious than it actually is. Many people assume it means they’ll never be approved for a mortgage — or that they need perfect credit before even thinking about buying a home.

In reality, adverse credit is common, and having an adverse credit score does not automatically stop you borrowing. What matters is understanding what lenders mean by adverse credit, how it affects risk, and which lenders are prepared to take a flexible view.

At Mortgage Bridge, we specialise in helping people with adverse credit move forward. This guide explains what adverse credit really means, what causes it, and how it impacts mortgage borrowing.

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What Is an Adverse Credit Score?

An adverse credit score refers to a credit profile that includes negative or imperfect credit events.

This can include:

• Missed payments
• Late payments
• Defaults
• CCJs
• Past debt solutions

It does not mean you have no credit or that your finances are out of control. It simply means your credit history shows some level of risk compared to someone with a completely clean record.

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Is Adverse Credit the Same as Bad Credit?

Not exactly.

While the terms are often used interchangeably, lenders tend to think in terms of risk, not labels.

• Mild adverse credit may include one or two historic missed payments
• Moderate adverse credit may include older defaults or settled CCJs
• Severe adverse credit may involve recent or unresolved issues

The severity, recency, and pattern of issues matter far more than the label itself.

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What Causes an Adverse Credit Score?

Adverse credit usually develops through everyday life events rather than reckless behaviour.

Common causes include:

• Temporary income loss
• Illness or relationship breakdown
• Rising living costs
• Missed direct debits
• Short-term reliance on credit

Lenders understand this — especially when circumstances have since improved.

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How Do Lenders View Adverse Credit?

Lenders assess adverse credit by looking at three key factors:

How Recent the Issues Are

Recent problems carry more weight than older ones. Adverse credit from several years ago is often viewed much more leniently.

How Serious the Issues Were

A single missed payment is very different from multiple defaults or a CCJ.

Whether Behaviour Has Improved

Clean recent credit history can significantly outweigh older issues.

Lenders are forward-looking. They want to know whether past problems are likely to repeat.

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How Does an Adverse Credit Score Affect Borrowing?

An adverse credit score doesn’t automatically stop borrowing — but it can affect how you borrow.

Reduced Lender Choice

High-street lenders often have stricter rules, while specialist lenders are more flexible.

Higher Deposit Requirements

A larger deposit helps offset perceived risk.

Different Interest Rates

Rates may be higher initially, with opportunities to improve later through remortgaging.

Stricter Affordability Checks

Lenders may stress-test repayments more carefully.

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Can You Get a Mortgage with an Adverse Credit Score?

Yes — many people do.

Approval depends on:

• The type of adverse credit
• How long ago it occurred
• Whether accounts are now up to date
• Deposit size
• Affordability

Specialist lenders focus more on current stability than historic mistakes.

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How Much Deposit Do You Need with Adverse Credit?

Deposit requirements vary by lender and severity of credit issues.

Typical ranges may include:

• 5–10% for minor, historic issues
• 15% for older defaults or CCJs
• 20% or more for recent or unresolved problems

A larger deposit often opens up more options and better rates.

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Does an Adverse Credit Score Affect Affordability?

Yes — but indirectly.

While adverse credit itself doesn’t reduce income, lenders may:

• Apply stricter stress tests
• Limit income multiples
• Factor in ongoing credit commitments

Reducing active debts can sometimes improve borrowing power more than improving your score alone.

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Can Adverse Credit Improve Over Time?

Absolutely.

As time passes:

• Older issues carry less weight
• Clean recent behaviour becomes more important
• Lender options gradually widen

Many borrowers start with a specialist mortgage and later move to more mainstream options once their credit profile improves.

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Common Myths About Adverse Credit

“Adverse credit means no mortgage.”
False — many lenders specialise in this area.

“You must wait until everything drops off your credit file.”
Not true — approval is often possible before that.

“All lenders treat adverse credit the same.”
Incorrect — criteria vary widely.

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How to Improve Your Position If You Have Adverse Credit

Practical steps include:

• Making all payments on time going forward
• Settling defaults where possible
• Reducing outstanding balances
• Avoiding new credit before applying
• Allowing time for recent issues to age

Preparation often makes more difference than trying to chase a perfect score.

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How Mortgage Bridge Helps with Adverse Credit Mortgages

Adverse credit is one of our core specialisms.

We:

• Review credit files in detail
• Assess severity in lender context
• Match you with suitable lenders
• Advise on timing and preparation
• Reduce the risk of unnecessary declines

We’re here to help if you want clarity on your real options.

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Key Takeaways

• An adverse credit score means past credit issues, not automatic rejection
• Recency and severity matter more than the label
• Specialist lenders offer flexible options
• Deposit size and affordability play a major role
• Credit profiles can improve over time

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Summary

An adverse credit score simply reflects past credit issues — it does not define your future borrowing potential. Mortgage lenders focus on patterns, improvement, and affordability rather than expecting a perfect credit history.

With the right preparation, realistic expectations, and access to lenders who understand adverse credit, many borrowers successfully secure mortgages and move forward with confidence. Understanding how adverse credit is assessed is the first step toward finding the right solution.

This guide provides general information only, personalised recommendations must come from a regulated mortgage advisor