How to Get a Mortgage with Bad Credit: Tips and Options for Poor Credit Scores
If you have a poor credit score or past credit issues, it is common to worry that getting a mortgage may not be possible. Missed payments, defaults, or other financial difficulties can make the mortgage process feel uncertain. However, a mortgage with bad credit is not automatically out of reach.
UK mortgage lenders assess applications based on a combination of factors, not just credit score alone. This guide explains how bad credit is viewed in a mortgage context, how lenders assess applications with poor credit scores, and the general options and considerations for borrowers in this position. The content below is intended as general guidance only.
Can You Get a Mortgage with Bad Credit?
Yes, it may be possible to get a mortgage with bad credit.
Lenders usually consider:
- the type of credit issue
- how recent it was
- whether it has been resolved
- your income
- your deposit
- your affordability
- your overall financial history
Bad credit alone does not automatically mean you’ll be declined.
What You’ll Learn
- What lenders class as bad credit
- Whether you can still get a mortgage
- Which credit issues matter most
- How lenders assess applications
- How to improve your chances
- Links to detailed guides for every type of adverse credit
What Is Considered Bad Credit for a Mortgage?
Bad credit is not defined by a single score or threshold. Instead, it refers to negative information recorded on a credit report. This may include:
- Missed or late payments
- Defaults on credit agreements
- County Court Judgments (CCJs)
- Debt management plans
- Individual Voluntary Arrangements (IVAs)
- Bankruptcy, including discharged cases
- High levels of unsecured borrowing
Different lenders have different tolerance levels for these issues. The same credit history may be acceptable to one lender and unacceptable to another.
| Credit issue | Can a mortgage still be possible? |
|---|---|
| Missed payments | Often yes |
| Defaults | Often yes |
| CCJs | Often yes |
| Debt Management Plan | Sometimes |
| IVA | Sometimes |
| Bankruptcy | Sometimes |
| Payday loans | Depends on recency |
| Low credit score | Often yes |
Credit Scores vs Credit Reports
When applying for a mortgage, lenders do not rely solely on a credit score. Instead, they review the full credit report to understand patterns of behaviour over time.
A credit report shows:
- Types of credit used
- Payment history
- Outstanding balances
- Credit limits and utilisation
- Public record information
- Recent credit applications
A low credit score may flag potential risk, but lenders usually want to understand the reasons behind it.
Can You Get a Mortgage with Bad Credit?
In general terms, it may be possible to get a mortgage with bad credit, depending on individual circumstances.
Lenders often consider:
- The type of credit issues
- How recent those issues were
- Whether problems were isolated or repeated
- Whether debts are settled or ongoing
- Income stability and affordability
- Deposit size and loan-to-value (LTV)
A single historic missed payment is usually viewed very differently from multiple recent defaults.
If your credit history includes a specific issue such as a default, CCJ or Debt Management Plan, you’ll find detailed guides on each later in this article.
What Doesn’t Automatically Stop You Getting a Mortgage?
Many people assume they cannot get a mortgage if they have:
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- A satisfied default
- An older CCJ
- Historic missed payments
- A Debt Management Plan that has finished
- A low credit score
In reality, lenders usually assess the wider circumstances rather than one issue in isolation.
The Importance of Recency
Recency plays a significant role in mortgage decisions.
- Older credit issues, such as those several years ago, often have less impact
- Recent credit issues, particularly within the last 6 to 12 months, are usually assessed more cautiously
Many lenders apply minimum timeframes since the last adverse credit event, while others assess applications on a case-by-case basis.
Types of Bad Credit and How Lenders View Them
Not all adverse credit is treated equally.
Missed Payments
Occasional missed payments may be viewed with flexibility if they are historic and followed by a period of good conduct.
Defaults
Defaults suggest more serious financial difficulty. Lenders often assess the amount, age, and whether the default has been settled.
CCJs
CCJs can significantly reduce lender choice, especially if they are recent or unpaid.
Insolvency
IVAs and bankruptcy are typically viewed as higher risk. Many lenders require these to be discharged for a certain period before considering an application.
Deposit Size and Loan-to-Value (LTV)
Deposit size is often a key factor when applying for a mortgage with bad credit.
Lower LTV mortgages:
- Reduce the lender’s risk
- May increase the number of lenders willing to consider the application
- Can lead to more competitive interest rates
Applicants with bad credit may find higher LTV options more limited, particularly at 95%.
Affordability and Income Stability
Affordability is assessed independently of credit history. Even where bad credit exists, lenders must be satisfied that the mortgage is affordable.
Affordability assessments typically include:
- Verified income
- Household and lifestyle expenditure
- Existing credit commitments
- Stress testing against higher interest rates
Stable income and manageable outgoings can help demonstrate that past credit issues are not ongoing.
Employment Status and Bad Credit
Employment stability can influence how lenders view bad credit.
Lenders may consider:
- Length of time in employment or self-employment
- Consistency of income
- Type of employment (employed, self-employed, contractor)
A stable employment record can support an application, even where credit history is less than perfect.
Specialist vs Mainstream Lenders
Some mainstream lenders apply strict credit criteria and may decline applications with adverse credit. Others are more flexible, depending on circumstances.
There are also specialist lenders who focus on borrowers with non-standard credit histories. These lenders may consider applications that fall outside mainstream criteria, but products may involve:
- Higher interest rates
- Larger deposit requirements
- Additional fees
Lender criteria and availability change over time.
Options People Often Explore with Bad Credit
While outcomes vary, borrowers with bad credit often explore the following options:
Allowing Time to Pass
Older credit issues generally carry less weight than recent ones, particularly where financial behaviour has improved.
Reducing Existing Debt
Lower unsecured balances can improve affordability calculations.
Checking Credit Reports for Errors
Incorrect information can sometimes be disputed and corrected.
Avoiding Frequent Credit Applications
Multiple recent applications can negatively affect how lenders view risk.
These steps do not guarantee mortgage approval but may improve overall lender confidence.
First Time Buyers with Bad Credit
First time buyers with bad credit are assessed in the same way as other applicants. Some housing schemes may be explored by eligible buyers, but full credit and affordability checks still apply.
Being a first time buyer does not remove the impact of adverse credit.
Buy-to-Let Mortgages and Bad Credit
Buy-to-let mortgages are assessed primarily on rental income, but personal credit history is still reviewed. Bad credit can limit lender options and affect available terms.
Buy-to-let lending is not designed to bypass credit assessment.
How Long Does Bad Credit Stay on Your Credit File?
Most adverse credit entries remain on a credit report for up to six years from the date they occurred. Over time, their influence may reduce, particularly where recent financial behaviour is positive.
Entries are not usually removed early, even if debts are settled.
Common Misconceptions About Bad Credit Mortgages
“Bad Credit Means No Mortgage”
This is not always true. Many applicants with adverse credit have successfully obtained mortgages.
“Only Credit Score Matters”
Lenders review the full credit report, not just a single number.
“A Bigger Deposit Guarantees Approval”
A larger deposit can help, but affordability and credit history are still assessed.
Example
Imagine two applicants.
Applicant A has:
- one default from four years ago
- a 15% deposit
- stable employment
- no further missed payments
Applicant B has:
- three recent defaults
- missed payments within the last three months
- a 5% deposit
Although every application is assessed individually, lenders are generally more likely to view Applicant A more favourably because the credit issues are older and there is evidence of improved financial management.
Before Applying
Many people improve their chances by:
✅ Checking all three credit reports.
✅ Correcting any errors.
✅ Avoiding further missed payments.
✅ Keeping existing borrowing under control.
✅ Saving as much deposit as possible.
✅ Understanding which lenders may be suitable before making applications.
Taking these steps does not guarantee acceptance but may improve the number of options available.
Frequently Asked Questions
Can I get a mortgage with bad credit?
Potentially, yes. Having bad credit does not automatically prevent you from getting a mortgage. Lenders usually consider the type of credit issues, how recent they were, whether they have been resolved, your deposit, affordability and your overall financial circumstances before making a decision.
What is considered bad credit for a mortgage?
Bad credit can include missed payments, defaults, County Court Judgments (CCJs), Individual Voluntary Arrangements (IVAs), Debt Management Plans (DMPs), bankruptcy and other adverse information recorded on your credit report. Different lenders assess these issues differently.
Can I get a mortgage with a low credit score?
Potentially, yes. Mortgage lenders generally look beyond your credit score and review your full credit report. They will often consider factors such as your payment history, income, affordability and deposit rather than relying on a single number.
Do all mortgage lenders use the same criteria for bad credit?
No. Every lender has its own lending criteria and appetite for risk. A lender that declines one application may not reach the same decision as another lender reviewing the same circumstances.
Will bad credit affect the interest rate I am offered?
It can do. Applicants with recent or more serious credit issues may have fewer mortgage products available and may be offered higher interest rates than those with a stronger credit history. This will vary depending on the lender and your overall circumstances.
Can first-time buyers get a mortgage with bad credit?
Potentially, yes. Being a first-time buyer does not automatically prevent you from obtaining a mortgage if you have bad credit. Lenders will assess your application in much the same way as any other applicant, considering your credit history, affordability and deposit.
Can I remortgage if I have bad credit?
Possibly. Some lenders will consider remortgage applications from borrowers with adverse credit, although the options available may depend on the type and age of the credit issues, the amount of equity in the property and your current financial circumstances.
How long does bad credit affect a mortgage application?
Many types of adverse credit remain on your credit report for up to six years. However, lenders often place greater emphasis on more recent credit issues than older ones, particularly where there has been a sustained period of good financial management.
Can I get a mortgage if I have multiple credit problems?
Potentially. Some applicants have more than one type of adverse credit, such as missed payments alongside a default or CCJ. Lenders will usually assess the overall picture, including the severity, age and pattern of the credit issues, rather than focusing on one event in isolation.
Should I wait before applying for a mortgage?
That depends on your circumstances. In some cases, allowing more time to pass, improving your credit conduct or saving a larger deposit may increase the number of lenders willing to consider your application. However, there is no single rule that applies to everyone.
What should I do before applying for a mortgage with bad credit?
It is often sensible to review your credit reports, check that all information is accurate, avoid further missed payments, keep existing borrowing under control and understand which lenders may be suitable before making an application. Being well prepared can help reduce unnecessary credit searches and improve your understanding of the options available.
Summary
Getting a mortgage with bad credit can be more complex, but it is not automatically ruled out. Lenders assess applications based on the type, timing, and severity of credit issues alongside income, affordability, deposit size, and overall financial stability.
Understanding how lenders view poor credit scores and what factors influence decisions can help borrowers approach the mortgage process with clearer expectations.
Every lender assesses bad credit differently. This guide explains the general principles lenders often consider, but mortgage criteria change regularly and every application is assessed on its own merits.
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Related Bad Credit Mortgage Guides
- Bad credit mortgage options
- Mortgage with defaults
- Mortgage with CCJs
- Missed payments and mortgage approval
- Mortgage with a Debt Management Plan
- Mortgage with a Bankruptcy
Important information: Mortgage Bridge provides information only and acts as a mortgage introducer. We do not provide mortgage advice or make lender recommendations. We can introduce you to an FCA-regulated mortgage adviser who can provide personalised mortgage advice.