Life Happens mortgages

Nottingham Building Society takes a common-sense approach to adverse credit, helping you place cases that fall outside high-street criteria.

If you have a client who has a credit impairment as a result of a life event, our Life Happens proposition is here to help.

Submit a case Contact your BDM

Adverse credit mortgages for real life setbacks

Bad credit doesn't mean we won't consider a borrower. Divorce, illness, redundancy, bereavement and other life events can leave a credit blip on an otherwise strong application. Our Life Happens range considers clients with CCJs, defaults, DMPs and IVAs, because we look at the story behind the credit file, not just the score.

We look at the full financial picture today, not just one event from yesterday.

Our Life Happens mortgage criteria:

Three tiers let us cater for a wide range of circumstances, from minor blips to more recent but contained credit issues. The system cascades to the appropriate tier based on the client’s credit profile. Always confirm against our full criteria page.

Criteria	Core For information	Life Happens 1	Life Happens 2
Maximum LTV	95%.	90%.	85%.
Mortgage arrears	Up to date last 36 months.	Max status 2 in 36 months. None in last 12 months.	Max status 2 in 36 months None in last 6 months.
Unsecured loan arrears	Max status 2 in 24 months. Up to date last 12 months.	Max status 2 in 12 months. None in last 6 months.	Max status 2 in 12 months Currently up to date.
Other unsecured arrears	Higher arrears on other credit may be considered subject to credit score and underwriter assessment.
CCJs and defaults*	CCJs or defaults less than £500 combined may be considered subject to credit score and underwriter assessment.
	CCJs/defaults over £500 combined. None registered in the last 36 months.	CCJs/defaults over £500 combined. None registered in the last 24 months.	CCJs/defaults over £500 combined. None registered in the last 12 months.
	CCJs older than 5 years regardless of value are acceptable. Other CCJs/defaults may be acceptable subject to credit scoring.	Unsatisfied CCJs/defaults can be considered where applicants are making contributions to reduce these. Payments will be included as commitments for affordability.
Debt management plans	No new agreements registered in the last 36 months.	Any ongoing agreements satisfactorily maintained for the last 12 months.
IVAs	Discharged for 3 years.	Discharged for 1 year.	Discharged at any time (not currently active).
Bankruptcy/debt relief order	Discharged for 3 years.	Discharged for 3 years.	Discharged for 3 years.
Please note	Applicants meeting the MCOB defined Impaired Credit History (ICH) status are not accepted.	If an applicant falls under the FCA definition of Credit Impaired, all outstanding commitments will be included within the affordability calculation, irrespective of being repaid or not.

For more information on how we treat specific criteria issues see our FAQs section below.

Products rates

Maximum LTV ⁽¹⁾	Life Happens 1 (LH1)		Life Happens 2 (LH2)
Maximum LTV ⁽¹⁾	2 year fixed	5 year fixed	2 year fixed	5 year fixed
60%	5.89% - MJF01P	5.88% - MJF01T	6.15% - MKF01D	6.15% - MKF01G
80%	6.19% - MJF01Q	6.18% - MJF01U	6.45% - MKF01E	6.45% - MKF01H
85%	6.39% - MJF01R	6.38% - MJF01V	6.65% - MKF01F	6.65% - MKF01J
90%	6.65% - MJF01S	6.64% - MJF01W	-	-

Key product features

All products come with a £999 product fee which can be paid on completion or added to the loan.
One basic free valuation on all products; and free standard legal fees for remortgages only.
All products are portable (subject to underwrite and valuation).
Early repayment charges apply, with 10% over-payments allowable each year – ERCs are 1%-2% for 2-year fixed and 1%-5% for 5-year fixed products.
Maximum loan of £1.5m up to 75% LTV, £1.0m up to 80% LTV and £750k up to 90% LTV, min loan is £30k.
Fixed product end-date of 30 April 2028 for 2 year fixed and 30 April 2031 for 5 year fixed products.
Products revert to Nottingham Variable Mortgage Rate (VMR) minus 1.50%, which is currently 6.35%.

How to submit an application

The system has been designed to cascade to the appropriate product based on your customer's credit profile.

Four steps from criteria check to full application. Talk to your business development manager at any point if you want a second opinion on a case.

4. Credit check completed

Adverse credit examples we could look at

One satisfied CCJ registered 3 years ago

A client with a single satisfied CCJ over £500 from a past life event, now with a clean recent record and stable income. Potential tier: LH1 up to 90%.

Client on a debt management plan

An ongoing DMP satisfactorily maintained for over 12 months, with no new agreement registered in the last 36 months. Potential tier: considered.

IVA discharged just over a year ago

A client whose IVA was discharged 14 months ago, with finances well managed since and a deposit in place. Potential tier: LH1 up to 90%.

Why Nottingham Building Society

We take the time to understand each case properly. That means looking beyond the credit score and focusing on what’s changed. Our aim is to find a fair outcome that works for both you and your customer.

Up to 90% LTV on Life Happens products - 90% on LH1 and 85% on LH2.
Manual underwriting - Real underwriters review complex adverse credit cases.
Tiered, cascading products - The system cascades to the right tier for the client’s profile.
Unsatisfied CCJs considered - Where the client is making contributions to reduce them.
Ongoing DMPs accepted - Where satisfactorily maintained for the last 12 months.
Talk it through - Work the case through directly with your BDM before you submit.

Case study

Behind every case is a real person whose circumstances have changed. This example shows the type of case our Life Happens range is built for. The applicant had a strong income but experienced a change in circumstances that led to missed payments and adverse credit.

By looking at the detail, not just the score, we were able to assess the case fairly and find a solution.

The applicant is a teacher and union member who took part in strike action during 2023. This resulted in a temporary loss of income, which in turn led to the
adverse credit events.

Adverse summary

7 defaults within a five‑month period in 2023.
4 defaults remain outstanding.
A utilities account showing status 6 in the latest month.

See how our underwriters came to a decision for this case below.

How did we get to the mortgage offer for this applicant?

What process did underwriting go through?

You’ll have a dedicated underwriter looking after your case from the moment it’s submitted to the final decision. That means one person takes the time to understand the full picture.
When a case is reviewed, our underwriters don’t just follow a checklist. They look at the detail behind the application to understand the level of risk and the borrower’s circumstances.
If there’s been a past credit issue, they’ll look at how things have changed since then. For example, they’ll check whether repayments have been managed well and whether the borrower is demonstrating they're in recovery and able to repay the defaults.
Because of this careful review, some cases can take a little longer, but this work is what helps us make fair, responsible decisions for every application.

Did underwriting have to check for certain requirements?

Overall looking for improvement, we asked specific questions to the broker such as;

Why was the applicant off work, when will she return?
Asked for payslips.
Latest 3 months bank statements showing salary and bills including monthly payments of defaults.
Asked the broker to provide explanations for defaults in 2023, what caused them and what the applicant's plans are to repay.
An explanation for status 6 on utilities in the latest month and evidence this has been brought up to date.

How did we reach a decision to accept the case?

We don’t rely on a single check to make a decision. Our underwriters look at the full picture.
They assess how many risk indicators are present and what they mean together. For this case, they also completed a second credit check with another provider to gather more information.

A final decision isn’t made by a system alone. The underwriter reviews all the detail, weighs up the risk, and confirms the outcome based on their judgement.

Outcome

Case approved! 69% LTV.
2-year product selected at a rate of 5.34%* (Life Happens 1 tier).

Information correct as of March 2026.

Broker frequently asked questions

How do I know if my client is suitable for the Life Happens adverse range?

When you are discussing the case with your client, ask for details about what caused their credit impairment.

Life Happens is designed for clients who've experienced financial difficulty following a significant life event, but have since shown they can manage their finances well.

Typical life events might include:

Relationship breakdown or divorce
Redundancy or loss of employment
Serious illness or injury
Bereavement
Business difficulties or closure
Caring responsibilities

What matters isn't only what happened, but how your client has recovered since. That recovery is measured in time and conduct: how long ago the credit event was registered, and how the account has been run since.

Customers who have poorly managed their credit and are unable to provide a reasonable explanation would not be suitable for this proposition.

What sort of customers are Nottingham Building Society looking to support?

We're looking for clients whose credit profile doesn't fully reflect where they are today.

They may have:

Historic mortgage or unsecured arrears
County Court Judgments (CCJs)
Defaults
A debt management plan, whether settled or still running
A discharged IVA, bankruptcy or debt relief order

What we want to see alongside that is stable income, improved financial conduct and a clear commitment to meeting their obligations.

What detail is required to evidence the life event?

Here at Nottingham Building Society we don't expect your client to provide extensive documentation explaining their personal circumstances.

Where it's relevant, our underwriters may ask for information that helps explain historical credit issues and shows how your client has recovered.

Every case is assessed individually.

How is recovery assessed?

A credit check runs at decision in principle and the system cascades the case to the appropriate tier based on your client's credit profile. An underwriter then looks at the wider picture, including:

Recent payment conduct
Stability of income
Time since any adverse credit event
Overall credit profile
Affordability
Strength of the application

The focus is on where your client is today, not just what happened in the past.

What's the difference between Core, Life Happens 1 and Life Happens 2?

The three tiers let us support clients with varying levels of historic credit issues. As the credit event becomes more recent, the tier steps down and so does the maximum loan to value.

Core, up to 95% LTV. Our standard range. Little or no adverse credit. Broadly, the mortgage up to date for the last 36 months, and nothing over £500 combined in CCJs or defaults registered in the last 36 months.
Life Happens 1, up to 90% LTV. Historic credit issues with a proven recovery period demonstrated.

Life Happens 2, up to 85% LTV. More recent but contained credit issues, with improved financial management since.

What further information can you tell me on how you treat CCJs and defaults?

Combined CCJs and defaults of up to £500 for each applicant are ignored.

Above £500 combined, there needs to be nothing registered in the last 36 months for Core,
the last 24 months for Life Happens 1,
or the last 12 months for Life Happens 2.

CCJs older than five years are acceptable whatever the value, and other CCJs or defaults may still be acceptable subject to credit scoring.

Affordability and the overall credit profile are then assessed alongside that, and each case is considered on its own merits.

Are first-time buyers eligible?

Yes, subject to our residential lending criteria and affordability requirements. Life Happens sets the position on adverse credit, and the rest of the case is assessed against our standard residential criteria in the usual way.

Can self-employed clients apply?

Yes, subject to our standard income assessment and residential lending criteria. As with any application, the adverse credit governs the tier, income is assessed separately and the income is assessed as per our standard criteria.

I'm not sure whether my client's case fits. What should I do?

Please speak to our intermediary team or your BDM before you submit. A quick conversation can often tell you whether a case sits within Core, Life Happens 1 or Life Happens 2.

What further information can you tell me on how you consider debt management plans?

The DMP plan can still be running.

We'd typically want to understand:

When the plan started, which tells us whether it falls inside the 36 month test
Whether it's still active
How it's been conducted over the last 12 months
Current outstanding balances
Monthly repayment commitments

Our underwriters may ask for more where a case needs it, so pulling the plan statements together before you enquire will usually save a round trip.

Beyond that, the case is assessed against our lending and affordability requirements in the usual way.

The plan payments are included as commitments in affordability, so factor them into your client's disposable income before you size the loan.

What further information can you tell me about how you consider a client with an IVA?

We would want to know when the IVA was discharged, how long ago it was discharged is what sets the tier, and the tier sets the maximum loan to value.

Core, up to 95% LTV. Discharged for at least three years.
Life Happens 1, up to 90% LTV. Discharged for at least one year.
Life Happens 2, up to 85% LTV. Discharged at any time, provided it's no longer active.

What further information can you provide for applicants who have been previously made bankrupt?

Once they've been discharged for three years. Bankruptcy on its own doesn't rule your client out.

What we're then looking at is whether they've recovered, how they've conducted their credit since discharge, and whether the case meets our affordability requirements.

How do Nottingham Building Society treat Debt Relief Orders

A debt relief order is treated the same way as bankruptcy. We can consider your client once the order has been discharged for three years, with all other lending criteria met.

As with every Life Happens case, we'll look at the wider circumstances rather than a single historic credit event.

What are Nottingham Building Society looking for after a DMP, IVA or bankruptcy?

The strongest applications tend to show:

Stable income
A clear recovery period, long enough to clear the relevant window
Commitments maintained as agreed
Improved financial management
A sustainable affordability position

Got an adverse credit case to place?

Review the criteria, check affordability, then submit a decision in principle. The system cascades to the right product for your client’s profile.

Submit a case Speak to your BDM