• John and his then wife purchased a house, putting the mortgage in her name due to his adverse credit history
  • Following their divorce, John, wanted to buy her share of the house but had no previous mortgage or rental history and no deposit 
  • Unfortunately, their marital breakdown led to further financial difficulties and more defaults for John
  • Since the divorce, he'd maintained a clean credit record for over a year with a good job and sufficient income
Case type: Young credit history Previous financial difficulties


John Stone, an equipment installation engineer, bought a house in Manchester with his wife, with help from his father who generously gave them the deposit as a gift. 

Unfortunately, John and his wife divorced and he agreed to buy out her share of the house. He wanted to pay off the existing mortgage and take out a new mortgage in his name.

The issues

When John and his wife purchased their house, they decided to put the mortgage in her name due to his adverse credit history.

Following their marital breakdown, John experienced further financial difficulties which resulted in more defaults showing on his credit record. 

So when it came to buying out his ex-wife's share of the house, not only was he applying for a mortgage as a first-time buyer, but he also had no deposit of his own and no history of being a tenant or making rental payments. 

He decided to speak to a local mortgage adviser, Brett Cocking of Brytannic Extra Finance Ltd, for advice and help.

Brett Cocking at Brytannic Extra Finance Ltd says:

"A life event such as divorce can cause all sorts of financial difficulties, but most people get their lives and finances back on track and when they do so, they deserve a second chance. 

By being willing to assess John's application based on its own merits rather than just his historical credit record, Pepper Money has been able to construct a deal that enables John to buy his home with a mortgage in his own name and move forward with his life."

The solution

Brett could see this was a case for a specialist lender that would be willing to assess John's application based on his current circumstances and not just his historical credit record. 

So when Brett came to us, we took the following factors into consideration: 

  • Although John had a significant history of financial problems, he'd turned his life around and maintained a clean credit record for over a year
  • He had a stable job and was earning more than enough to afford the loan for which he was applying (an 80% LTV loan on a property valued at £180,000)
  • Although he wasn't able to put down a deposit, we took account of the gifted equity resulting from his father's original gifted deposit as part of the divorce settlement.

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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