Can I get a mortgage with bad credit?
Yes — but your options depend heavily on the type, severity, and age of the adverse credit on your file. High street lenders are generally inflexible with credit issues, but there is a substantial market of specialist lenders who exist specifically to lend to borrowers with imperfect credit histories. With the right advice, many people who think they can't get a mortgage actually can.
What counts as bad credit?
- Late or missed payments — even one missed payment can affect some lenders
- Defaults — recorded when a lender writes off a debt as unpaid
- CCJs (County Court Judgements) — formal court orders for unpaid debt
- IVA (Individual Voluntary Arrangement) — a formal debt repayment agreement
- Bankruptcy — the most severe, but even this doesn't permanently bar you
- Debt management plans (DMPs)
- Payday loan history — some lenders view this negatively even if repaid
How does the severity affect my options?
Lenders categorise adverse credit on a spectrum. Generally:
- Minor issues (1–2 late payments, small satisfied default) — Many mainstream lenders will still consider you, especially if the issue is 2+ years old
- Moderate issues (multiple missed payments, CCJ, active DMP) — Specialist lenders required. Deposit of 15–25% typically needed.
- Severe issues (unsatisfied CCJs, IVA, bankruptcy) — Specialist lenders only. Larger deposit required (25–35%). Rates will be higher.
💡 Time is your friend. The older the adverse credit, the less weight lenders give it. Most issues become significantly less impactful after 3 years, and after 6 years they drop off your credit file entirely.
What deposit will I need?
The more severe your credit issues, the larger the deposit lenders will require — both to reduce their risk and to improve the rate available to you:
- Minor credit issues: 10–15% deposit may be sufficient
- Moderate issues: 15–25% typically required
- Severe issues (IVA, bankruptcy): 25–35% is common
How can I improve my chances?
- Check your credit report — get your full report from Experian, Equifax, and TransUnion. Errors are common and can be corrected.
- Register on the electoral roll — a simple but effective boost to your credit score
- Avoid new credit applications in the 12 months before applying for a mortgage
- Reduce existing debt — lower utilisation on credit cards and loans improves your profile
- Save a larger deposit — reduces lender risk and unlocks more options
- Use a specialist mortgage adviser — essential for bad credit cases
⚠️ Avoid applying directly to multiple lenders if you have bad credit. Each hard credit search leaves a mark on your file. A mortgage adviser can soft-search the market and identify the right lender before any application is made.
Will my mortgage rate be higher?
Yes — adverse credit mortgages carry higher rates than standard products, reflecting the increased perceived risk. However, rates vary considerably between specialist lenders, and the gap has narrowed in recent years. With the right advice, you may find the rate is more affordable than you expected.
Many borrowers with adverse credit successfully get on the ladder, rebuild their credit profile, and remortgage onto significantly better rates 2–3 years later.