In conversations about creditworthiness, there is still a tendency to focus solely on borrowers with clean histories. That approach is easy to understand, particularly from a risk management point of view.
However, brokers working on the ground will recognise that the reality is far more nuanced. Many borrowers have experienced some form of financial setback, and I feel that alone should not disqualify them from access to fair mortgage lending.
There’s been a lot of talk about affordability and criteria tightening, but we’re still seeing strong demand from buyers. According to UK Finance, the number of homeowner mortgages in arrears of 2.5 percent or more fell to 87,380 in Q2 2025, representing a 3 percent drop from the previous quarter.
These figures suggest that the vast majority of borrowers, even those with past credit events, are managing their finances effectively and meeting their commitments.
For some, adverse credit is still treated as a red flag, but I think that overlooks a crucial point: most credit issues are temporary and rooted in a specific life event. Redundancy, illness, divorce or the rising cost of living can all contribute to missed payments or short-term defaults. Yet in many cases, the borrower has since stabilised their finances and rebuilt.
To reflect this, we — like many other lenders operating in this space — have updated our lending approach and worked hard to make our criteria clearer, so brokers can tell straight away where we might be a good fit. That saves everyone time, and it gives brokers that bit more certainty when placing cases that fall outside the usual parameters.
These relationships are essential when assessing adverse credit cases. We see brokers as ideally placed to present a detailed account of the borrower’s circumstances, explain the reason behind credit issues, and provide supporting documents that demonstrate both progress and recovery. I believe that a single missed payment from 2021 can look very different when accompanied by two years of stable income, improved financial behaviour and clear affordability.
In these situations, communication between broker and underwriter becomes invaluable. Lenders who are open to discussion, and brokers who are willing to provide a full picture, can often arrive at a decision that works for everyone involved.
I think it’s likely that we’ll see more borrowers with imperfect credit histories seeking these types of mortgage options. The fact is, cost pressures remain and affordability is still tight.
But at the same time, millions of people have taken steps to rebuild their financial health and are now in a stronger position than their credit file alone might indicate.
According to the latest research from Experian, it can take as little as six months to start improving a low credit score. That is a relatively short timeframe, yet many lending models still place far too much weight on past issues.
With the right lender, a well-structured application and clear supporting evidence, adverse credit does not have to be the end of the road. It can be the start of a well-considered conversation that leads to a positive and sustainable outcome for a host of borrowers who have experienced a minor, or even a major credit blip, along the way.
Claire Askham is head of mortgage sales at Buckinghamshire Building Society
