Nowadays, however, there are more bad credit financing options in the UK than ever before. Various sub prime lending institutions offer plans and mortgage products that help people with bed credit buy or refinance their own property.
UK bad credit mortgages can often provide financing when the more traditional lenders, what is referred to as high street lenders, refused to loan the money. There are UK bad credit loans for first time buyers as well as those who would like to refinance their home to improve their credit and financial standing.

Bad credit is established in the UK as a debtor's having been involved in one or more of four situations. These are having had a county court judgment (CCJ) , a default on a loan or loans, a history of payments being in arrears, a current or former bankruptcy (fewer than 10 years ago) and an individual voluntary arrangement (IVA).

In the UK what is amazing is that the Debtors Act of 1869 is still in effect, and this pertains to CCJs that have not been paid according to their agreement. This law states that the county court can actually imprison someone who defaults on their payment – just one payment – ordered by the court system.

If a debtor cannot pay money that he or she rightly owes after a court judgment against him or he, and he alleges that his entire debts amount to under approximately £2000 the county court can pass legislation that assigns and administrator for the person's financial affairs. This is a CCJ.

Before the CCJ decision is rendered, however, the court has to send every creditor a notice of the attempt to resolve the debt. While the CCJ remains in force no creditor can participate in any bankruptcy petition against that debtor unless the debt is more than £700 and the creditor received the CCJ notice 28 or fewer days prior to the petition.

Under the CCJ order to resolve the UK bad credit issue the debtor is ordered to make installment payments on her or his debt. The order could be payment in full or to the percent of the balance that the court determines can reasonably be expected of the debtor. The judgment will be determined with consideration of future earnings.

Just as with a bankruptcy, a CCJ protects the debtor from any creditor's harassment or collection attempts about the debts included in the CCJ. A warrant of repossession of a debtor's goods can become part of a CCJ as well, although the UK bad credit resolution doesn't usually include this.

The money that the debtor pays under the CCJ must, however, first pay court costs for the administration of the judgment. Then the debts are paid. If the money is enough, each creditor is paid. Once all debts are paid as agreed by the CCJ, the debtor is discharged from any further outstanding debts to the same creditors for the same debts.