Adverse Credit Mortgages

Adverse credit mortgages are designed for borrowers who have experienced credit issues in the past. This may include missed payments, defaults, County Court Judgments (CCJs), debt management plans, or historic insolvency.

Having adverse credit does not automatically prevent you from obtaining a mortgage, but it can affect lender choice, interest rates, and deposit requirements. Lenders assess applications based on both the type of credit issue and how recently it occurred.

Common factors lenders consider include:

• The nature and severity of the credit issue
• How recently the issue occurred
• Whether accounts are now settled or ongoing
• Current income and affordability
• Deposit size and loan-to-value

Some lenders specialise in adverse credit cases and take a more flexible approach, particularly where credit issues are historic and financial circumstances have stabilised.

Mortgage rates may be higher and lending criteria stricter than for standard mortgages. However, improving credit over time can allow borrowers to review their options in the future.

Understanding what lenders look for helps set realistic expectations and supports a more structured route back to mainstream lending where possible.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Contractor Mortgages

Contractor mortgages are designed for individuals working on a contract basis, often through limited companies or umbrella arrangements. Standard affordability assessments may not always reflect how contractors earn, which is why specialist criteria can apply.

Rather than using traditional payslips, many lenders assess contractor mortgages using contract income, often calculated from a daily or hourly rate.

Lenders may consider:

• Current contract value and duration
• Length of contracting history
• Gaps between contracts
• Industry and role stability
• Deposit size and credit profile

Some lenders require a minimum contract length remaining, while others look at overall contracting experience. Contractors working through limited companies may also need to provide company accounts.

Contractor mortgages can be used for purchases, remortgages, and home moves. Criteria and income calculations vary significantly between lenders, making product selection important.

Understanding how your income is assessed helps ensure applications are structured correctly and aligned with lender expectations.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Self-Employed Mortgages

Self-employed mortgages are available to sole traders, partners, and directors of limited companies. Unlike employed applicants, self-employed borrowers must demonstrate income stability over time.

Lenders typically assess self-employed applications using:

• One to three years of accounts or tax calculations
• Net profit for sole traders and partners
• Salary and dividends for limited company directors
• Business sustainability and trading history
• Credit profile and deposit size

Some lenders are more flexible with income assessment, particularly where earnings are consistent or increasing. Others may average income over multiple years.

Up-to-date accounts and accurate tax records are essential, as lenders rely heavily on documented income rather than projections.

Self-employed borrowers often have access to a wide range of mortgage options, provided applications are structured correctly and affordability is clearly demonstrated.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Expats and Foreign National Mortgages

Expat and foreign national mortgages are designed for borrowers who live abroad or who do not hold permanent UK residency. These cases typically involve additional complexity and more limited lender choice.

Lenders may assess:

• Residency and visa status
• Currency of income and exchange risk
• Employment type and contract stability
• Deposit size, often higher than standard mortgages
• UK credit history, where available

UK expats purchasing property in the UK may be assessed differently from foreign nationals with overseas income. Some lenders specialise in these cases and apply bespoke criteria.

Deposit requirements are typically higher, and mortgage rates may differ from standard residential products. Documentation requirements can also be more extensive.

Understanding lender expectations early helps avoid delays and ensures applications are submitted with appropriate supporting evidence.

Your home may be repossessed if you do not keep up repayments on your mortgage.