Lender Links Help Advisers Support Bad Credit Clients

By Philip Keith Director and Mortgage & Protection Adviser, Mellow Financial

For clients with bad credit, the path to homeownership can feel closed off. Limited product choice, higher deposits and stricter criteria can make the process seem impossible. But that’s where a good adviser can make all the difference – by knowing where to look, who to speak to, and how to make the case for each individual client.

When a client comes to me with a history of defaults or missed payments, the first step is to understand what’s behind it. Some are surprised to learn that old issues still have an impact, while others assume their situation is beyond repair. The reality is usually somewhere in between. A big part of our job is to educate clients on what’s possible, and to show them that there are lenders willing to listen.

That’s why strong relationships with lenders matter so much. Smaller building societies and regional lenders often take a more human approach, allowing direct conversations with underwriters rather than decisions being left to automated systems. It’s a chance to explain the story behind a credit file, to put a name and a reason to the numbers. I’ve seen how those conversations can change outcomes, and it’s one of the reasons I enjoy working in this part of the market.

These relationships also prove our value to clients. When you can tell someone you’ve secured their mortgage with a lender they’ve never heard of, after personally speaking with the underwriting team, they see the real expertise behind the advice. We have access to a wide range of lenders and tools that help us check criteria and affordability quickly, but experience and relationships remain the biggest differentiators.

Education is vital, too. Many clients assume that if they’re with a specialist lender, they’ll be paying higher rates forever. It’s important to explain that bad credit is temporary – time is a healer when it comes to credit files. A two- or five-year fixed deal gives space for the client’s credit record to improve, creating opportunities to move to a better rate in future. Helping clients understand that this is part of a longer journey builds trust and reassurance.

Being part of a strong network makes this process even more effective. At Mellow Financial, I’m part of the Cornerstone Network, which provides a huge amount of peer support, access to lender events, and opportunities to share knowledge with other advisers. Whether it’s a WhatsApp group where someone can ask, “Has anyone placed a case like this?” or attending a webinar where a lender explains an overlooked part of their criteria, that collective experience is invaluable.

Ultimately, supporting clients with bad credit is about collaboration between advisers, lenders, and networks. We all share the same goal: helping people achieve homeownership, even when their financial history makes it challenging. Every time a client says, “I didn’t think I’d ever get a mortgage,” it reinforces why these relationships matter. Strong connections lead to stronger outcomes, and that’s what good advice is built on.