Impaired credit mortgage sales reach highest level since 2008 – Broadstone
A total of 10,089 mortgages were sold to these borrowers in 2025, up 23% from 8,183 in 2024.
Mortgage sales to borrowers with impaired credit histories reached their highest level since 2008, analysis of Financial Conduct Authority (FCA) data by Broadstone found.
A total of 10,089 mortgages were sold to these borrowers in 2025, up 23% from 8,183 in 2024.
It was the first time annual sales had passed 10,000 since 2008.
Sales reached 5,776 in the second half of 2025.
This was 24% higher than the same period in 2024 and 34% above the first half of 2025.
A further 5,965 mortgages were sold during the first half of 2026.
The second quarter accounted for 3,098 sales, the highest quarterly total since the third quarter of 2008, when 6,540 were recorded.
The figures excluded internal product transfers, second charge mortgages, further advances and business loans.
John Barbour, senior director in Broadstone’s banking and credit advisory business, said: “The acceleration in mortgage sales over the past 12 months suggests that the market is becoming more accommodating to people whose credit histories may previously have prevented them from accessing mortgage lending.
“An impaired credit history does not necessarily mean that someone cannot sustainably afford a mortgage today.
“Financial difficulties caused by the pandemic, the cost-of-living crisis and the rapid increase in interest rates may have left marks on borrowers’ credit records that do not accurately represent their current circumstances.”
Barbour added: “Lenders increasingly have access to the data, analytics and modelling that enable them to take a more nuanced view of risk.
“Taken alongside growing competition among specialist lenders, greater product availability and flexibility in affordability assessments, this more individualised approach can support broader access to sustainable mortgage lending without compromising consumer protection or lending standards.”
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