If you are around the 5 year mark then there is a good chance that these blips could be ignored (depending on what they are) but I think that it will largely depend on the level of deposit you are going to place. If it is just 10% then I think the lenders may scrutinise your credit profile a little more closely and there is more chance of a decline. If you are able to place as much as 25% then the lender will see the application as a lower risk and they will not be as concerned by your adverse....unless there are multiple events of adverse.

For buy to let, you will need to have your residential mortgage in place first as they will not want to lend on a buy to let basis to a first time buyer. There is normally a minimum income required of around £20k - £25k depending on the lender, this is very often requested to be evidenced nowadays and will almost certainly be requested if you have a chequered past. They will also require a minimum depsosit of 25% for a purchase (some available at 20% but high fees and rates). You will also find that BTL lenders do not like adverse credit at all and there is far more chance of a decline because of it but with it being 5 years past it may just be ignored.

First thing you need to do is get your self onto the mortgasge ladder. Once you have got on the first step with your own property then I would suggest that you wait till the remainder of the adverse has fallen off your credit file and let the mortgage help build your score too. Once your score is a good level and you have no more adverse showing then apply for a BTL mortgage.

The best way to know if you can get a mortgage is to go and speak to a mortgage broker who can fully assess your situation and point you towards the right lender for your circumstances.

Good luck

Thank you for your reply my adverse credit is around 5 yrs n all settled silly amounts aswell around 200.00, as for btl anymore? Does that mean there still is a chance?

Nearly every single lender will require a minimum of 2 years accounts for self employed and more often than not they will require each years income covered by an SA302 too, this is an HMRC issued document that shows the the income declared and the tax paid. It is this income that the lenders will base their affordability against and rule of thumb is that you will be allowed to borrow around 4x your net profit (earnings before tax) for your mortgage. There are a couple of lenders that will accept 1 year but it is unlikely that you would be accepted with adverse credit

The adverse credit will not do you any favours either and may count you out of a mortgage altogether depending on when it happened, the level of the adverse and for what value the adverse is for. If you have had a default or a CCJ in the last year or 2 years then there is a high chance you will just be declined automatically, if it was 3-4 years ago you could be accepted if you have had no further missed or late payments in the last 2 years, if it was 5-6 years ago then the lenders do tend to ignore but if the debt still hasn't been repaid then this will reduce your chances again. If your adverse credit is from beyond 6 years ago then it will no longer show on your credit file. There are lenders out there that will be able to help you if you have adverse credit but you may well find the interest rate is very high to access these lenders and the fees may also be excessive. Speak to a mortgage broker and he can best advise you on who to approach.

What will improve your chance of a mortgage is the amount of deposit you can place down before you take the mortgage on. If it is only 10% or 20% of the purchase price then lenders will still see this as a high risk application and the chances of being accepted with adverse credit will drop through the floor. If you can give 25% plus then the lenders will view it as low risk and then the chances of them being more lenient with adverse credit improves.

You will not be able to buy a rental propperty until you are a mortgage holder, no BTL lenders will allow a first time buyer as a landlord anymore and the chances of you gaining a rental mortgage (buy to let) when you have any kind of adverse credit against you is slim.

The minimum deposit for a buy to let mortgage is 25% of the purchase price.

Good Luck

I'm a single Mother who now has the opportunity to go back to work I will be self employed and have some adverse credit I wish to buy my home and also buy a rental property I am wondering how long it will be until I will be able to apply for a mortgage and what the likely hood of being accepted is and also which to do first buy my own home or buy a rental property?