Stonewater Adverse Credit Process

At Stonewater, we want to make sure we are making applications for shared ownership as fair as possible. We work closely with independent mortgage advisors who are qualified to give mortgage advice and assess every shared ownership applicant applying for a property.

We rely on their professional assessment of your individual financial circumstances as to whether we can proceed with an application. Where adverse credit is concerned, we need to ensure we are protecting both you as a customer, and Stonewater.

It’s important to know that this process isn’t set in stone. From time to time there will be customers who will have experienced circumstances beyond their control, and a judgement call will be made based on their personal situation, advice from mortgage advisors and balanced against the risk to Stonewater.

What is adverse credit?

Adverse credit is a track record of poor repayment history on one or more loans or credit cards, or where there are other financial considerations that put you at a higher risk for lenders.

How could this affect my application?

A history of adverse credit might mean that we’re unable to proceed with your application.

In some instances, where there is a low-level adverse credit and you are able to secure a mortgage with a mainstream lender, this level of adverse credit shouldn’t affect your application.

However, where the adverse credit hits higher levels and you are unable to source a mortgage through a mainstream lender, it is unlikely you will be able to proceed with your application.

All applications are assessed by an Independent Mortgage Advisor who is aware of Stonewater’s process regarding adverse credit.

The table below outlines examples of adverse credit and what impact it could have on your assessment. Please note this list is not exhaustive.

Missed mortgage/rent arrears	If this has happened in the last 12 months, your application is unlikely to be accepted. However, we may consider the situation through an Individual Assessment.
Unsecured arrears	We’ll carry out an Individual Assessment.
County Court Judgments or registered defaults	None in the last 36 months. Plus, they must be satisfied prior to the mortgage application. They may be acceptable in the following situations: All CCJs/defaults were registered more than three years ago and satisfied prior to mortgage application. All CCJs/defaults were satisfied more than 12 months prior to application regardless of date of registration. The CCJs/defaults in aggregate amount to less than £300, regardless of date of registration, and were satisfied prior to mortgage application.
Individual voluntary arrangement (IVA) and discharged bankrupts	IVA/bankrupts who have been discharged over three years ago and who have no residual debt may be accepted, subject to Individual Assessment.
Repossessions	Unlikely to be accepted

Will mortgages be accepted with adverse credit lenders?

Stonewater have a duty as a responsible landlord to make sure any purchase is affordable now, and in the future. Where you are not able to secure a mortgage with a mainstream lender, Stonewater are unlikely to proceed with accepting your mortgage. We will review each case on merit, considering the proposed mortgage, product fees and interest rates before making a decision.