How to Get a High LTV Mortgage with Bad Credit: Tips, Options & Real-Life Advice

How to Get a High LTV Mortgage with Bad Credit: Tips, Options & Real-Life Advice

Trying to buy a home with bad credit and a small deposit can feel like hitting a brick wall. Many buyers assume they’ll need a large deposit before any lender will even consider them — especially after missed payments, defaults, or other credit issues.

The reality is more nuanced. Getting a high LTV mortgage with bad credit is possible in the right circumstances, but lender choice, preparation, and expectations are crucial.

At Mortgage Bridge, this is one of the most common challenges we help clients overcome. This guide explains how high LTV mortgages work, how lenders assess bad credit, and what realistic options exist.

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What Is a High LTV Mortgage?

LTV stands for loan-to-value, which is the percentage of the property price you borrow.

High LTV mortgages typically include:

• 95% LTV (5% deposit)
• 90% LTV (10% deposit)

The higher the LTV, the higher the risk for the lender — which is why credit history becomes more important at higher borrowing levels.

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Can You Get a High LTV Mortgage with Bad Credit?

Short answer: yes — but not in every case.

Bad credit does not automatically rule out a high LTV mortgage. Lenders assess:

• The type of credit issues
• How recent they were
• Whether they’ve been resolved
• Your current affordability and stability

Some credit issues are far easier to work around than others.

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What Types of Bad Credit Matter Most at High LTV?

Lenders look at bad credit in layers, not as a single label.

Late or Missed Payments

These are often the easiest to work around, especially if:

• They were isolated
• They’re historic
• Payments have been clean since

Some lenders will still consider high LTV lending in these cases.

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Defaults

Defaults are more serious, particularly at high LTV.

Lenders assess:

• How long ago the default occurred
• Whether it’s settled
• The amount involved

Small, older, settled defaults are far easier to place than recent or unpaid ones.

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CCJs and Insolvency

These significantly reduce high LTV options.

Recent CCJs, IVAs, or bankruptcies usually require:

• More time since the issue
• A larger deposit
• Specialist lenders

High LTV lending with recent insolvency is very limited.

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Why High LTV and Bad Credit Is More Challenging

High LTV mortgages already carry increased risk for lenders. When combined with bad credit:

• Lender choice narrows
• Rates may be higher
• Criteria becomes stricter

This doesn’t mean “no” — it means precision matters.

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What Lenders Really Look for at High LTV

When assessing a high LTV mortgage with bad credit, lenders focus heavily on:

Recent Credit Behaviour

Clean, consistent payments in the last 6–12 months are often more important than older issues.

Bank Statements

Lenders closely review:

• Overdraft use
• Gambling transactions
• Discretionary spending
• Income consistency

Strong bank statements can offset weaker credit.

Employment and Income Stability

Stable income reassures lenders that repayments are sustainable — especially at high LTV.

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What Deposit Do You Need with Bad Credit?

While some high LTV products start at 5%, many bad credit cases work better with:

• 10% deposit rather than 5%

Even a small increase in deposit can:

• Unlock more lenders
• Reduce interest rates
• Improve approval chances

We often find clients succeed sooner by aiming for 90% LTV rather than forcing 95%.

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Can First-Time Buyers Get High LTV Mortgages with Bad Credit?

Yes — this is common.

First-time buyers often:

• Have limited savings
• Have minor credit blips
• Rely on family support

Gifted deposits are widely accepted and can strengthen high LTV applications when declared correctly.

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Are Specialist Lenders the Only Option?

Not always — but often.

Some mainstream lenders will consider minor bad credit at high LTV, but:

• Specialist lenders are more flexible
• Criteria varies significantly
• Rates may be higher initially

Many buyers start with a specialist lender and remortgage later once credit improves.

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How to Improve Your Chances of Approval

If you’re aiming for a high LTV mortgage with bad credit, these steps matter most:

• Bring all accounts up to date
• Settle outstanding defaults where possible
• Reduce credit card balances
• Avoid new credit applications
• Keep bank statements clean
• Save even a slightly larger deposit if possible

Targeted preparation often matters more than time alone.

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Real-Life Advice: What Actually Works

From real cases we see every week:

• One missed payment last year ≠ automatic decline
• Clean recent behaviour changes lender decisions
• 10% deposits open far more doors than 5%
• Applying to the wrong lender causes unnecessary rejections

Strategy beats guesswork every time.

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Common Myths About High LTV and Bad Credit

“You need perfect credit for a 95% mortgage.”
Not always — context matters.

“Bad credit means you must wait years.”
Not true — many apply successfully sooner.

“All lenders assess bad credit the same way.”
They don’t — criteria varies widely.

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How Mortgage Bridge Helps with High LTV Bad Credit Mortgages

This is exactly where specialist advice makes the difference.

At Mortgage Bridge, we:

• Analyse your credit file line by line
• Assess which lenders suit your exact profile
• Advise whether 90% or 95% LTV is realistic
• Structure applications to reduce decline risk
• Help clients move forward sooner than expected

We’re here to give you real options — not false hope.

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Key Takeaways

• High LTV mortgages with bad credit are possible
• The type and timing of credit issues matter most
• Recent behaviour outweighs older problems
• Slightly larger deposits unlock more options
• Lender choice is critical

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Summary

Getting a high LTV mortgage with bad credit is challenging — but far from impossible. Lenders don’t just look at what went wrong in the past; they focus on how you’ve managed things since, how affordable the mortgage is now, and how much risk they’re taking on.

With the right preparation, realistic expectations, and access to lenders who understand adverse credit, many buyers successfully secure mortgages with small deposits and imperfect credit. Knowing which doors are genuinely open — and which aren’t — is the key to moving forward with confidence.

This guide provides general information only, personalised recommendations must come from a regulated mortgage advisor