The interesting case of the childminder with an adverse credit history 


  • Paul and Alison lived in Hampshire, but when Alison’s business hit financial difficulties, their personal finances also started to suffer

  • Their short-term solution was to move in with parents and rent out their home whilst they regained control of their finances

  • Two years later, they were back on track and Alison’s business was going from strength-to-strength 

  • They decided to move to a larger home but due to their historical credit record, they were turned away by high street lenders


Paul and his wife, Alison, both lived and worked in Hampshire. Paul had been working for the same employer for many years while Alison ran a childminding business.

When they decided to buy a larger home to accommodate their growing family and Alison’s developing business, getting a mortgage wasn’t as straightforward as they hoped. 

The issues

Previously, Alison had to close her childminding business when it ran into difficulties. Her income fell almost instantly by nearly £4,000 per month and, before they knew it, they were struggling to keep their heads above water financially.

As defaults, late payments and their adverse credit history worsened, they decided the only course of action available to them was to move in with parents and rent out their home for a couple of years while they got their finances back on track.

Two years later, once they regained control of their finances, they were able to move back into their family home. Alison’s new business was also going from strength-to-strength and, with two growing children, they decided the time was right to look for a larger home with more accommodation for both family and business.

Paul and Alison found a new home that matched their requirements perfectly, but when they applied for a mortgage, they discovered their past financial problems were still casting a long shadow.


Simon Rosser, owner of Swindon Homes Direct, says:

“Paul and Alison’s past financial problems were the big issue. Their combined income was now more than sufficient to service the mortgage and they had no problems proving affordability.”

The solution

Simon Rosser, owner of Swindon Homes Direct, had been helping the couple find a new home. He realised that they stood little chance of getting a mortgage through a traditional high street lender and knew this was a case for a specialist lender. He recommended Pepper Money, recognising that the criteria would accommodate his client’s circumstances and the rates were considerably cheaper than other lenders.

He explained: "They were applying for an 80% LTV loan of £190,000 on a property worth £237,500 and part of the loan would be used to consolidate some of their outstanding debts.”

Our underwriters at Pepper Money asked for proof of income and the paperwork was quickly provided and verified. This meant we were able to issue an offer, enabling Paul and Alison to complete on their house purchase and clear their debts.


This case study is based on criteria in effect at the time this case was submitted and reviewed by Pepper Money. We reserve the right to change or amend our criteria at any time. All our stories are based on real cases but the names have been changed.


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