Adverse Credit - Cheap Mortgage Deals

This term is used to describe Credit Problems due to a poor credit history. CCJs, Mortgage Arrears and other credit debt repayment problems leads to a record of Adverse Credit. It ie extremely unlikely that an applicant with adverse credit will be successful in applying for a 100% mortgage.

There are various levels of bad credit starting from light through to medium and then heavy. Lenders will have their own specific criteria for each type of bad credit and lend accordingly. Light Adverse for instance, could mean that the borrower has had up to 3 CCJs in the past and paid them all off and had a period of time when their credit record has been clean. Medium Adverse will mean that the level of bad debt in the past has exceeded the light adverse bracket but not resulted in bankruptcy or imprisonment.

There are credit repair mortgages on the market and these are a helpful way of both repairing your credit history whilst still taking out a mortgage. There must always be a period of time when the lender is 'on good behaviour' and pays the instalments without fail for a period of at least 3 or so years.