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I have been refused a mortgage due to bad credit, what does that mean?

If a borrower has a history of poor credit usage then this is described as Adverse Credit. Poor Credit history can include County Court Judgment (CCJ), Bankruptcy, Mortgage arrears or any late payments on credit arrangements. For example, some of the terms used are:

Arrears
This describes the amount the borrower is behind in his mortgage repayments schedule. The amount is usually measured in either pounds or months.

Bankrupt
A Corporation, Firm or individual who, via a court proceeding, is relieved from paying all debts once assets have been surrendered to an appointed third party designated by the court.
What is a County Court Judgment (CCJ)
A County Court Judgment is an adverse ruling by a County Court against a person who has not satisfied their debt payments with their creditors. Once the ruling has taken place it will be recorded against the person's credit history and will appear every time a credit search is done for the next seven years. If a person has a County Court Judgment against them it will usually have to be satisfied before they can get a loan. Mortgages for people with adverse credit will be charges at a higher interest rate.

Default
Failure of an individual to make payments on a mortgage at the correct time or to not comply with the mortgage companies requirements.