Getting a Buy to Let Mortgage with Bad Credit
If you’ve been dreaming of becoming a landlord but your credit history isn’t perfect, you’re not alone. Many people with past credit issues — from missed payments to CCJs — assume buy to let mortgages are off-limits. But that’s not the case. At Mortgage Bridge, we’ve helped plenty of landlords secure buy to let mortgages even after being turned down elsewhere.
In this guide, we’ll explain how getting a buy to let mortgage with bad credit really works, what lenders look for, and how you can improve your chances of approval.
Can You Get a Buy to Let Mortgage with Bad Credit?
Yes, you can.
Bad credit doesn’t automatically mean you’ll be rejected. While many high street lenders prefer applicants with clean credit files, specialist lenders are far more flexible. They’ll look at your full financial picture — including the type and age of your credit issues, your deposit size, and how well you’ve managed your money since.
We regularly help clients who have:
- Missed or late payments
- Defaults or CCJs
- Debt management plans
- Previous bankruptcies
These situations might limit your options, but they won’t rule you out entirely. The key is matching you with the right lender.
How Do Lenders View Bad Credit on a Buy to Let Application?
Lenders tend to see buy to let as a lower risk compared to residential borrowing, because the rent usually covers the mortgage payments. However, they’ll still want to know that you’re financially responsible.
They’ll look closely at:
- The severity of your credit issues: Small missed payments matter less than recent defaults.
- How long ago they happened: Older issues (over three years) are less concerning.
- Your deposit size: A larger deposit helps reduce risk and improves your chances.
- Your income and experience: If you already own property or have landlord experience, that helps too.
Even if your history isn’t spotless, a stable income and solid rental plan can work strongly in your favour.
What Deposit Do I Need for a Buy to Let Mortgage with Bad Credit?
Typically, you’ll need a minimum deposit of 25%, but with bad credit, lenders may ask for a bit more — usually around 30–40%.
The bigger your deposit, the better your options. It shows lenders you’re serious about the investment and helps you access more competitive rates.
If you’ve had credit issues recently, saving a larger deposit can be one of the most effective ways to strengthen your application.
We often help clients review their savings strategy or equity release options to make their deposit stretch further.
What Credit Issues Do Lenders Accept?
Different lenders have different appetites for risk, but here’s a general guide:
Accepted by some specialist lenders:
- Missed or late payments over 12 months ago
- Old defaults (over two years old)
- Satisfied CCJs or those under £500
Considered on a case-by-case basis:
- Recent defaults
- Larger CCJs
- Debt management plans or IVAs
Unlikely to be accepted until discharged:
- Active bankruptcy or IVA
Even if your situation seems complex, we know which lenders are more open to reviewing your case. It’s all about finding the right match.
How Does Rental Income Affect Your Chances?
For buy to let mortgages, lenders base affordability mainly on expected rental income, not your personal salary.
They’ll usually want the rent to cover at least 125%–145% of the monthly mortgage payment — sometimes more if you’re a higher-rate taxpayer.
If the rent comfortably meets these criteria, it can help offset some of the risk associated with your credit history.
We can help you calculate the rental yield and work out how much rent you’d need to meet lender requirements before you apply.
What Are the Interest Rates Like for Bad Credit Buy to Let Mortgages?
Rates for bad credit buy to let mortgages are typically higher than standard ones, simply because lenders see them as higher risk.
However, these rates can still be very reasonable, especially if:
- Your credit issues are older
- You’ve built up a healthy deposit
- The rental income is strong
The good news is that many clients start with a slightly higher rate, then remortgage onto a better deal after a year or two once their credit improves. It’s a common and practical route we help landlords take.
Can First-Time Buyers Get a Buy to Let Mortgage with Bad Credit?
It’s possible — but trickier.
Some specialist lenders do offer first-time landlord mortgages to people with adverse credit, though they’ll usually want:
- A higher deposit (often 30%+)
- Strong rental projections
- A stable income outside the property
If you’re buying your first rental and have some credit history challenges, getting professional advice early can make all the difference. We’ll help you build a realistic plan and find the lenders who actually say “yes”.
What If I Already Own My Home?
If you already own your home (even with an existing mortgage), you’re generally in a stronger position. Lenders often see this as proof that you understand how to manage credit and property responsibly.
If your credit issues happened in the past but you’ve kept your current mortgage payments up to date, that will count heavily in your favour.
You may also be able to release equity from your current home to fund your buy to let deposit — something we can help you explore.
How Can I Improve My Chances of Approval?
Even if your credit isn’t perfect, there’s a lot you can do to make your application stronger:
- Check your credit reports across all three agencies (Experian, Equifax, and TransUnion). Correct any errors before applying.
- Keep your bills and existing loans up to date — lenders want to see you’re managing things well now.
- Save as big a deposit as possible. It not only increases your options but can also help secure better rates.
- Avoid applying for multiple loans or credit cards right before a mortgage application.
- Show stable income and rental plans. If you have a letting agent or business plan, include it.
We’ll go through your full situation and help you polish everything before submitting your application — so nothing is left to chance.
Can You Get a Buy to Let Mortgage If You’re Self-Employed with Bad Credit?
Yes, you can.
Lenders will usually ask for two to three years of accounts or SA302 tax calculations to confirm your income. If you’ve only been self-employed for a short time, there are still specialist lenders who may consider you if the rest of your case is strong.
At Mortgage Bridge, we work with many self-employed landlords, so we know which lenders are flexible with income structures, such as dividends or retained profits.
Should I Apply Directly or Use a Broker?
If you have bad credit, working with a specialist mortgage broker makes a big difference.
Not all lenders advertise their buy to let bad credit products directly to the public, and applying to the wrong one can waste time or hurt your credit score further.
We know exactly which lenders are open to your circumstances, what they’ll need from you, and how to present your application in the best light.
We’ll take care of the hard work — you just tell us what your goals are.
What If I’ve Been Declined for a Buy to Let Mortgage Already?
If you’ve already been turned down, don’t panic.
Each lender has its own criteria, and a rejection from one doesn’t mean another won’t approve you. In fact, we often help clients who’ve been declined by their bank but go on to get accepted elsewhere.
We’ll review why it was declined, tidy up your application, and find a lender that fits your circumstances. There’s nearly always a solution.
What’s the Process of Getting a Buy to Let Mortgage with Bad Credit?
Here’s how it typically works:
- Initial conversation: We’ll review your goals, income, and credit background.
- Credit review: We’ll check your credit reports to understand what lenders will see.
- Lender matching: We find lenders who accept your credit profile and financial setup.
- Application: We help you prepare documents, from bank statements to rental estimates.
- Decision and completion: Once approved, you can move forward with your property purchase.
Having a broker involved from day one means fewer surprises and better results.
Can I Remortgage My Existing Buy to Let with Bad Credit?
Yes — remortgaging is often a great way to reset your mortgage on better terms.
If your credit has improved since you first took out the loan, we can help you switch to a more competitive rate or release equity to expand your portfolio.
Even if your credit issues are ongoing, there are still lenders willing to consider a remortgage, especially if your rental history is solid.
Final Thoughts: Moving Forward with Confidence
Getting a buy to let mortgage with bad credit might take a little extra preparation, but it’s absolutely achievable. Lenders are more flexible than ever, especially when you’ve shown you’re managing things well now.
At Mortgage Bridge, we specialise in helping landlords — new and experienced — secure mortgages in complex or challenging situations. Whether you’ve got a few old defaults or a full history of credit struggles, we’ll help you find a path forward.
If you’d like to explore your options, get in touch with us today. We’ll review your credit, assess your affordability, and show you exactly what’s possible.
Let’s make your property plans happen — even if your credit isn’t perfect.