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The process is effortless and straightforward. Simply fill in our contact form and we will connect you with the best financial advisor for your needs, from across the whole of the UK!

First and foremost, let us get rid of the myth that having bad credit means you cannot get a mortgage!

It's a common misconception that if you have bad credit, that you cannot get a mortgage. Whilst it restricts your options, there are still dozens of lenders across the UK who will consider all types of bad credit. From smaller issues such as the odd missed payment here and there, to bigger issues such as bankruptcies and repossessions.

Read on to learn how you can go about getting a mortgage with bad credit, and how to give yourself the best chances of success.

Speak to a bad credit mortgage advisor!

Can I get a mortgage if I have bad credit?

This is one of the most common questions that get's asked, and we're pleased to say that in the right circumstances and with the right guidance, it's certainly possible!

There are dozens of mortgage lenders around the country and each one of them has their own tolerance on what - if any - adverse credit they will consider. For example, there are some high street banks such as Halifax and Natwest who have been known to consider applications where there's been the occasional historic missed payments. If you have more serious issues such as defaults or CCJ's, then they're much less likely to consider you.

However, there are many specialist lenders who you've likely not even heard of such as Kensington and Pepper Money, that are specifically in the market for those with bad credit. You won't get the same sort of rates with them as you will with the high street, but they're much more accepting of credit issues. You may have been turned away by a high street bank, but could be welcomed with open arms by a specialist lender.

Speak with us to get matched with a mortgage advisor who specialises in getting bad credit mortgages.

Can I get a mortgage if I have a low credit score?

The same answer applies here. It certainly is possible to get a mortgage if you have a low credit score.

It's important to remember that the scores you see from credit reference agencies like Experian, are indicative only. They score you based on your credit history only, however mortgage lenders factor in a lot more, such as how much you earn, what you do for a living, how long you've been doing it, how much debt you have, and much more.

Just because your score may be low, it's no reason to believe that you cannot get a mortgage.

Many lenders out there do not even use credit scores, they have set criteria and base each application on its own unique merits. You could have a credit score of zero, but if you meet their criteria, they will still consider you!

So how do I get a mortgage with bad credit?

Here are some steps you can take to give yourself the best chance of success when applying for a mortgage with bad credit.

Check your credit report - If you don't have one already, your first port of call should be to get an up to date copy of your credit file. The specifics of your bad credit history, such as what issues you had, how many of them they were, what they were for, when they were, how much they were for, and whether they're now satisfied, will all influence which lenders will consider you. We've teamed up with several leading providers around the country to help you get access to your credit report for free, with no impact on your credit score. Check out CheckMyFile, Experian, and UK Credit Ratings.
Get your bank accounts in order - Lenders want to see that you can manage your money and that you can budget for your mortgage payments and other household expenditure. You can demonstrate things by doing things like ensuring you are not spending every penny you earn each month, sending money to a savings account each month, having all of your standing orders & direct debits organised, and paying everything on time.
Speak to a bad credit mortgage broker - If you try to go it alone you could find your self getting declined by multiple lenders. Not only can this be very disheartening, it can also damage your credit score. It's times like this when speaking to a bad credit mortgage broker, like the ones we can match you with, will save you so much time, effort, energy and stress. They will have already helped many others in similar situations and with one look at your credit report they will know which lenders are best positioned to help you. The knowledge, experience, and relationships they have with mortgage lenders is invaluable. Click here to find out more.

Does the type of bad credit make a difference?

Yes it does. Some credit issues are deemed to be more serious than others.

Arrears & Missed Payments

We all get behind on our bills sometimes, and thankfully most lenders are sympathetic to this.

Some lenders view arrears on your debts like mortgages, loans and credit cards, as more serious than on commitments such as phone and utility bills.

If you have only ever gotten one or two months behind and it's not a regular occurrence, then you will likely find a greater tolerance than if you have gone further into arrears. The longer ago that the arrears happened, the more comfortable lenders tend to be that the issues are now over.

Click here to find out more.

County Court Judgements (CCJ's)

If you fail to repay money that you owe to a person or company, they can apply to court to try and get that money back. If the court sides with them, then you are issued with a County Court Judgement.

Many mortgage lenders treat them the same as defaults. If your CCJ is recent then fewer lenders would be willing to lend, and their rates are likely to be quite high.

The older they get though, the more doors open for you and the better terms you can get.

Click here to find out more about getting a mortgage with CCJ's.

Repossessions

Some lenders, such as Santander, will never lend to someone if they have ever had a repossession. Thankfully there are still quite a few lenders who will consider a mortgage with a repossession.

The exact approach varies between lenders. Some may consider if the repossession was as little as 1 year ago, some will require more time.

Providing you meet the lender criteria, then as long as they can get comfortable that what caused the repossession isn't likely to happen again, you may have options.

Click here to find out more about getting a mortgage with a repossession.

Defaults

A default typically happens when you fall far enough into arrears on a debt or other credit commitment. You normally need to be behind on your payments by 6 months or more for this to happen. Some companies may do it after a shorter time though.

Defaults can have quite an impact on your mortgage options because they show that in the past you have borrowed money, and not paid it back.

Thankfully, plenty of lenders will consider a history of defaults, with many ignoring them completely if they're old enough!

Click here to find out more about getting a mortgage with defaults.

Debt Management Plans (DMP's)

It may seem serious if you have had to utilise the services of a debt charity such as Stepchange or Payplan, and enter into a Debt Management Plan. However there are still many lenders in the UK who accept them.

The majority of specialist lenders on the market will still consider you for a mortgage with a DMP. As long as it has been in place for at least 12 months and you have not missed any payments on it, there may be options for you.

Click here to find out more about getting a mortgage with a debt management plan.

IVA's

Can I get a mortgage with an IVA is a question many have asked. The pool of lenders who consider them is rather limited, but there are a handful that do.

If you have been fully discharged from your IVA then every year older it gets, more doors open for you.

Believe it or not, a handful of lenders will even consider lending to you if your IVA is still active!

Click here to find out more about getting a mortgage with an IVA.

Bankruptcies

It can be a traumatic experience going through a bankruptcy. The silver lining though is that once you have been fully discharged, you are normally free and clear to start over.

The high street won't consider lending to you until you have been discharged for several years, however there are several specialist lenders who can take a common sense view on things. Many of them will only require you to have been discharged for a year or two - in some cases, even less.

How much deposit do I need for a bad credit mortgage?

As with all mortgages, the greater deposit you can put down, the more options you have and the better rates you can get.

It's not impossible to get a 10% deposit mortgage or maybe even a 5% deposit mortgage if you have adverse credit. However your options will be quite limited and the interest rates available to you are likely to be quite high.

With issues such as Defaults, CCJ's and DMP's, the vast majority of lenders will consider a 15% deposit mortgage. If your issues are within the last couple of years then you may need even higher.

The most serious of issues such as Repossessions, IVA's and Bankruptcies will likely require a 25% deposit, in some cases it may be even higher.

Speak to a bad credit mortgage broker!

The best thing you can do to give yourself the highest chance of success when applying for a mortgage with bad credit, is to take advantage of the skills of a mortgage broker who specialises in bad credit, like the ones we work with.

Our network of carefully selected professionals have whole of market access. They live and breathe adverse credit mortgages on a daily basis, and their knowledge & expertise in arranging them is second to none.

Press the link below to submit an enquiry, and we will introduce you to the advisor best positioned to help you!

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