Can You Get a Mortgage If One Person Has Bad Credit?

Many couples worry that one partner’s poor credit history will automatically block them from getting a mortgage. In reality, you can get a mortgage if one person has bad credit, but lenders will assess the whole application — including income, deposit, affordability and financial conduct — before making a decision.

This guide explains how lenders treat joint applications where one person has adverse credit, what options you may have, and how to strengthen your case. This article provides general information only and does not offer regulated mortgage advice.

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How Bad Credit Affects a Joint Mortgage Application

When you apply jointly, lenders combine:

• Both incomes
• Both credit files
• Both financial commitments
• Your overall affordability

If one partner has bad credit, lenders must assess the combined risk.

What counts as bad credit?

Lenders may be cautious if one applicant has:

• Defaults
• CCJs
• Missed payments
• High credit utilisation
• Payday loans
• DMP, DRO, or previous insolvency
• Persistent overdraft use
• Returned direct debits
• Multiple recent credit searches

Not all issues carry the same weight — the type, age and severity of the adverse credit matter greatly.

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Can You Still Get a Mortgage If One Person Has Bad Credit?

Yes — many couples secure mortgages in this situation. Your options depend on:

• How recent the bad credit is
• What type of issue it was
• Whether it is settled
• How strong the other applicant’s profile is
• Deposit size
• Income and affordability
• Recent bank statement conduct

Some high-street lenders decline cases where one applicant has significant recent adverse credit. However, specialist lenders often take a more flexible, manual-approach.

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How Lenders Assess These Cases

1. Recency and severity of adverse credit

The more serious and recent the issue, the fewer lender options.

Typical patterns:

• Recent CCJs or defaults: specialist lenders only
• Defaults older than 3 years: more flexibility
• One missed payment in last 12 months: some high-street lenders still consider
• Historic payday loans: usually acceptable if older and settled

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2. Whether the debt is settled

Settled debt is always preferred. Unsettled CCJs or defaults reduce lender options, especially if they exceed certain limits.

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3. Impact on affordability

Lenders check:

• Monthly credit commitments
• Household outgoings
• Stability of income

If one person has high repayments toward old debt, this may affect borrowing capacity.

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4. Bank statement conduct

Underwriters typically review 3–6 months of statements to confirm:

• No unarranged overdrafts
• No bounced payments
• Stable spending patterns
• No significant gambling
• Responsible credit behaviour

This can strengthen or weaken your application regardless of your credit score.

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5. Deposit size

Deposit can offset risk.

Typical guidelines:

• 5% deposit: only mild or older adverse credit
• 10% deposit: moderate issues may be accepted
• 15–25% deposit: supports cases involving defaults, CCJs or DMPs
• 25%+ deposit: most specialist lenders become accessible

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6. Whether both applicants are needed on the mortgage

Some couples choose to apply in the name of the applicant with good credit only, but this is only possible where:

• One income alone meets affordability
• The property and mortgage structure allow it
• No legal or ownership concerns arise

The other partner can still be named on the property deeds in some cases (subject to lender policy).

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Options When One Person Has Bad Credit

Option 1: Apply jointly with a specialist lender

Most common route when both incomes are needed.

Specialist lenders use manual underwriting, looking at:

• The cause of the credit issue
• How long ago it was
• Whether conduct has improved
• Overall financial stability

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Option 2: Apply in one person’s name only

May be possible if:

• One income meets loan affordability
• The partner with bad credit isn’t required for the mortgage
• You understand the legal differences in ownership and responsibility

However, joint ownership without joint borrowing isn’t accepted by all lenders.

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Option 3: Increase your deposit

A larger deposit:

• Reduces lender risk
• Expands potential lender choice
• May lower the interest rate

This is particularly useful when one applicant has multiple or recent adverse marks.

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Option 4: Wait for adverse credit to age

Some issues (e.g., defaults, CCJs, payday loans) have less impact as they grow older.

Waiting even six months to a year can materially change your lender options.

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Option 5: Strengthen bank conduct

Stable spending and good account management can sometimes compensate for historic adverse entries.

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Common Scenarios Lenders See

Scenario 1: One applicant has a recent default

Specialist lenders likely required. Deposit of 15–25% may help.

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Scenario 2: One applicant has missed payments on a mobile phone contract

If mild and older than six months, many lenders may still consider.

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Scenario 3: One applicant has a DMP (active or recently completed)

Options exist, but affordability and payment history will be assessed carefully.

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Scenario 4: One applicant has a CCJ from several years ago

If older than three years and settled, acceptable to a wider range of lenders.

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Scenario 5: One applicant has payday loans within last 12 months

Specialist lending likely required.

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Steps to Strengthen Your Joint Application

(General Information Only)

1. Check and clean all credit files

Ensure:

• Accounts show correct status
• Settled loans are marked as settled
• Old adverse isn’t duplicated
• Linked addresses are correct

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2. Reduce credit card balances

Keeping utilisation below 30% improves your profile.

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3. Avoid new borrowing before applying

New credit reduces affordability and may concern lenders.

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4. Improve bank statement behaviour

For 3–6 months aim to:

• Avoid overdrafts
• Maintain stable spending
• Settle all payments on time

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5. Build a larger deposit

Even a small increase can expand lender choice.

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6. Prepare notes on credit issues

Underwriters value clarity, especially where circumstances have improved.

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Summary

You can get a mortgage if one person has bad credit, but lender choice depends on the type, age and severity of the adverse credit. Key factors include:

• Deposit size
• Income and affordability
• Bank statement conduct
• Credit file accuracy
• Settlement of debts
• Whether both applicants need to be on the mortgage

Many couples secure mortgages through specialist lenders and later remortgage to a high-street lender once their overall profile improves.

This article provides general information only. For personalised guidance, regulated mortgage advice is required.