Bad Credit History

The occasional late/missed payment will not usually have an impact on your mortgage options, however consecutive arrears or re-occurring late payments across several accounts will certainly impact your mortgage options. These will show as either a 1,2,3,4,5 or an amber mark within your credit report. Most lenders will view different credit accounts more severe than others, for example a utility account in arrears is not as detrimental as a personal loan in arrears. 

After several consecutive late/missed payments, the credit account will likely then progress into a default. This is usually after five or six months, if the account has been consistently in arrears. Although difficult, it is always best to satisfy defaulted accounts as soon as possible. 

A County Court Judgement (CCJ) can stem from something as simple as a parking fine. It is a court order which tells you to pay an unpaid debt. You usually have two weeks to satisfy a CCJ before it is escalated, the debt is often sold on and the outstanding amount can increase as a result. 

A debt management plan (DMP) is an agreement with your creditors to pay off all of your debts. It is usually set for a fixed period between when it was initially registered and when you become discharged. You would usually have to keep up to date with your plan payments for a minimum of 12 months before you have options. Being discharged from the debt management plan will open up further options. 

Individual Voluntary Arrangement (IVA) is a legal arrangement for you to pay back your debts. Once agreed, the plan is in force and the payment agreements are binding. Having an active IVA makes it extremely difficult to obtain a mortgage, however being discharged from an IVA for a minimum of three years will open up your options.   

Similar to an IVA, you will likely have to be discharged for a minimum of three years to secure a mortgage after declaring bankrupt.