Adverse Credit Remortgages Glossary

A useful glossary of terms for adverse credit mortgages and remortgages.

Adverse Credit
an impairment to an individuals credit file which can prevent them from obtaining standard credit products.

Bankrupt
a person who has been issued with a Bankruptcy Order.

Bankruptcy Order
an order issued by a court in which an individuals assets are ceased to pay off their creditors.

County Court Judgment (CCJ)
a judgment issued by a County Court in relation to monies owed by one party to another that can appear on a persons credit file if the debt is not settled.

Credit History
a file containing an individuals past and present borrowing and records of repayments made and missed.

Credit Rating
a score given to an individual based on their credit history that lenders will use to help decide whether to lend them money.

Credit Reference Agency
an agency that collects information on peoples credit histories which are used to derive their credit scores. Lenders utilise credit reference agencies when performing credit checks on individuals.

Default
a situation in which a borrower misses a payment on their loan.

Discharged Bankrupt
a person who has previously been issued with a Bankruptcy Order who is released from bankruptcy. A discharged bankrupt may applied for credit but will be severely limited regarding the products that are available to them.

Light Adverse
a credit file with a small number of impairments.

Heavy Adverse
a credit file with a large number of impairments.

Loan Arrears
missed payments on a loan which can lead to adverse credit.

Medium Adverse
a credit file with a medium level of impairments.

Mortgage Arrears
missed payments on a mortgage which can lead to adverse credit and possible repossession.

Repossession
the legal process by which a creditor takes possession of a debtors properly in lieu of the debt being repaid.