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Adverse Credit
Thousands of people with poor credit histories get mortgage approval every year. Connect with specialist brokers who know which lenders accept your situation.
Yes, you can get a mortgage with bad credit. Specialist lenders design products specifically for people whose credit history doesn't meet high street bank criteria. They manually underwrite each application, assessing your full financial picture rather than relying on automated credit scores alone.
Your options depend on three key factors: the type of credit issue (late payments, defaults, CCJs, IVAs or bankruptcy), how recent it is, and whether the debt has been satisfied. A single satisfied default from over three years ago gives you access to many specialist lenders at reasonable rates. Recent unsatisfied CCJs or active debt management plans significantly limit your options.
Deposit size matters significantly. Moving from 10% to 15% or 25% opens substantially more lender options and better interest rates. Bad credit mortgage rates typically sit 1-5% above standard rates, depending on severity. Since 2017, Money Saving Advisors has helped over 400,000 people connect with specialist mortgage brokers.
Sources: Bank of England base rate data (July 2026), Financial Conduct Authority mortgage lending statistics
A bad credit mortgage is a standard mortgage offered to someone whose credit history doesn't meet the criteria of mainstream high street lenders. The mortgage works exactly the same way: you borrow money to buy a property, secured against that property, and make monthly repayments over an agreed term.
The difference is that specialist lenders have designed their criteria to accept applications that would be automatically declined elsewhere. They manually underwrite your application, looking at your whole financial picture rather than just your credit score.
There's no single definition of "bad credit." What one lender considers unacceptable might be perfectly fine for another. The three main credit reference agencies in the UK use different scoring systems:
Mortgage lenders don't just look at your credit score number. They examine actual entries on your credit report: defaults, missed payments, or other issues. A score of 600 with Experian might seem "fair," but if it's low because of a single satisfied default from four years ago, you'd have more options than someone with the same score caused by multiple recent missed payments.
Common credit issues that affect mortgage applications:
Mainstream lenders typically run automated credit checks: your application gets scored by a computer, and if you don't meet certain thresholds, you're declined without a human reviewing your case. Specialist bad credit lenders work differently, using manual underwriting where an actual person reviews your full circumstances.
Not all credit problems are treated equally. Lenders view them on a spectrum:
Time genuinely heals credit problems. A CCJ from five years ago is viewed very differently from one issued last month. Most negative information stays on your credit file for six years from registration.
"Satisfied" means the debt has been paid off. An unsatisfied CCJ or default shows lenders you still owe money, significantly reducing your options. Most specialist lenders require adverse credit to be satisfied before approving a mortgage. A £2,000 satisfied default from 3 years ago might not prevent approval with many specialist lenders, while the same amount left unsatisfied would dramatically reduce your options.
LTV is how much you're borrowing compared to the property's value. Lower LTV means lower risk for the lender. If you have credit issues, offering a larger deposit significantly improves your chances and gets you better interest rates.
If you have bad credit, you'll pay higher interest rates than someone with a clean credit history. This is the trade-off for lenders taking on additional risk. As of early 2026, the Bank of England base rate is 3.75%. Standard mortgage rates for borrowers with good credit sit at around 4.2-4.6% for 2-year fixed and 3.9-4.3% for 5-year fixed at 75% LTV. For bad credit mortgages, expect to pay 1-5% more depending on severity and deposit size.
These are significant differences, which is why spending time improving your credit before applying can save thousands. Bad credit mortgage rates aren't permanent: if you maintain all payments on time, your credit score will improve. After 2-5 years, you may be able to remortgage to a much better rate.
A default happens when a creditor formally closes your account after 3-6 months of missed payments. Key factors lenders consider: how old it is (4+ years carries much less weight), whether it's satisfied, the amount (under £500 viewed more leniently), the type of credit (mortgage defaults viewed more seriously than utility contracts), and how many you have.
A CCJ is a court order stating you owe money. It stays on your credit file for six years. If you pay within one calendar month of judgment, the CCJ can be removed entirely. After one month, it remains but is marked "satisfied." Most specialist lenders require CCJs to be satisfied, and many won't consider applications with CCJs registered within the last 12 months.
An IVA is a formal debt solution where you repay a percentage of debts over 5-6 years. While in an active IVA, getting a mortgage is extremely difficult. After discharge, you'll typically need to wait 1-3 years, provide a 15-25% deposit, and accept higher rates. Your IVA shows on your credit file for 6 years from the start date.
Bankruptcy is the most serious credit issue. You cannot get a mortgage while undischarged (typically 12 months). Most specialist lenders want 3+ years since discharge with a 25%+ deposit, stable employment for 2+ years, no other credit issues since, and evidence that the cause was a one-off event.
Not having any credit history can be as problematic as having bad credit. This commonly affects young first-time buyers, people who've always paid cash, and immigrants new to the UK. Spend 6-12 months building credit: register on the electoral roll, get a credit builder card, ensure bills are in your name, and consider a mobile phone contract.
Before applying for any mortgage, check your credit reports with all three agencies. Lenders may use one, two, or all three, so you need to know what each shows.
Look for errors, unknown accounts, linked associates, and outdated information. Under the Consumer Credit Act, credit agencies must investigate disputes within 28 days and remove unverifiable information.
Common correctable errors include payments marked late when you paid on time, accounts that aren't yours, incorrect address history, old information that should have dropped off, and accounts showing as active when closed.
If information is technically accurate but doesn't tell the full story (for example, you missed payments during serious illness), you can add a Notice of Correction. Lenders who manually review your application will see this explanation.
These lenders design products specifically for people with adverse credit. They manually underwrite every application. Examples include Pepper Money, Kensington Mortgages, Aldermore, Together, Precise Mortgages, Bluestone, and Vida Homeloans. Most only accept applications through mortgage brokers, not direct from the public.
Some smaller building societies have more flexible lending criteria than high street banks. They're more likely to consider applications individually rather than using rigid automated systems. Examples include Buckingham Building Society, Darlington Building Society, Kent Reliance, and Chorley Building Society.
If a family member with good credit is willing to guarantee your mortgage, this can help you access better rates or get approved when you otherwise wouldn't. The guarantor becomes legally responsible for payments if you default and usually needs to be a homeowner themselves. This is a significant commitment: they should get independent legal advice before agreeing.
Sometimes the best option is to delay your purchase. If your issues are recent and severe, waiting 12-24 months while maintaining perfect credit behaviour can dramatically improve your options and rates. During this time, pay all bills on time, pay down existing debts, avoid new credit applications, and save a larger deposit.
Adverse Credit
Specialist brokers know exactly which lenders match your credit situation and can present your application in the best light.
Improve your chances
Increase your deposit
Moving from 10% to 15% or 25% opens significantly more lender options and better rates. Every 5% increase gives access to more lenders and reduces interest rates.
Satisfy outstanding debts
Unsatisfied defaults and CCJs severely limit options. Even though they remain on your credit file, being "satisfied" makes a significant difference to how lenders view them.
Maintain perfect recent credit
Pay every bill on time, keep credit card usage under 30% of limits, avoid applying for new credit, and meet all existing commitments.
Stabilise your employment
Aim for at least 12 months in your current role, past any probationary period. Self-employed applicants typically need 2+ years of accounts.
Be completely honest
Hiding credit issues is both fraudulent and counterproductive. Lenders will find out during checks, and discovering dishonesty is an automatic decline.
Prepare documentation
Have proof of ID, 3-6 months bank statements, 3 months payslips, proof of deposit source, and documentation explaining credit issues ready.
Mistakes to avoid
Beyond interest rates, budget for these additional costs. Some specialist lenders charge higher arrangement fees (£999 to £2,995 or more). Specialist mortgage brokers may charge £300-£1,000, though many are paid by the lender instead. Standard property costs also apply: basic valuation (£250-£500), homebuyer's report (£400-£700), full building survey (£600-£1,500), and conveyancing (£1,000-£2,000 including disbursements).
For bad credit mortgages, working with a specialist broker is often essential. Many specialist lenders only accept applications through brokers, so without one, these options simply aren't available to you.
Specialist brokers know exactly which lenders accept which types of credit issues. They can assess your situation and immediately identify realistic options, rather than you wasting time and credit searches on lenders who won't approve you. How your application is presented matters: experienced brokers know how to frame credit issues positively and what supporting documentation strengthens your case.
What to look for in a broker:
Yes. Specialist lenders exist specifically for borrowers who don't meet mainstream bank criteria. Your options depend on the type of credit issue, how recent it is, whether it's satisfied, and your deposit size. A single satisfied default from over 2 years ago leaves several lender options available.
Most specialist lenders require at least 15% deposit (85% LTV), though some accept 10% for minor issues. For serious problems like recent CCJs or discharged bankruptcy, expect 20-25% or more. Larger deposits access better rates and more lender options.
Initially, yes: rates typically sit 1-5% above standard. But this isn't permanent. Maintaining all payments on time improves your credit score. After 2-5 years, you may remortgage to a significantly better rate, potentially saving thousands.
Most specialist lenders require at least 3 years since discharge, and some require 6 years. You'll need a 25%+ deposit, stable employment for 2+ years, no new credit issues, and evidence the cause was a one-off event.
Yes, all UK mortgage lenders check credit history. However, they use different agencies and have different criteria. A rejection from one lender doesn't mean all will decline you. Specialist lenders have much more flexible criteria than high street banks.
Yes, though options are more limited than residential mortgages. Specialist lenders do offer buy-to-let mortgages for adverse credit. You'll typically need a 25%+ deposit and strong rental income projections.
Paying debts so they're marked "satisfied" significantly improves options. However, very old small debts (4+ years) may cause a temporary score drop when paid. Check with a broker before making large payments.
No. Checking your own score is a "soft search" that doesn't appear on your credit file. You should check all three reports before applying. Only "hard searches" from lender applications affect your score.
Most negative information stays on your credit file for 6 years from the date registered. This includes defaults, CCJs, IVAs, and bankruptcy. After 6 years, information is automatically removed.
Yes. Many specialist lenders accept applications with defaults. Options depend on how old it is, whether it's satisfied, the amount, and the type of credit. With a single satisfied default from over 2 years ago, several lenders are available.
A rejection doesn't mean no mortgage is possible. Find out why (lenders must tell you if asked), check credit reports for errors, and speak to a specialist broker. Don't keep applying randomly, as multiple rejections damage your credit further.
Strongly recommended. Many specialist lenders only accept broker applications. Brokers know which lenders match your situation, present applications effectively, and prevent unnecessary rejections that would damage your credit.
There's no universal minimum. Lenders use different criteria and agencies. Some specialist lenders don't have minimum score requirements at all, assessing each application individually based on actual credit history rather than a number.
Getting a mortgage during an active DMP is difficult, as it suggests ongoing debt problems. Some specialist lenders may consider applications if the DMP is near completion with a large deposit. Many find it better to complete the DMP first.
Getting started
Check your credit reports
Get your free reports from Experian, Equifax (via ClearScore), and TransUnion (via Credit Karma). Look for errors and understand what lenders will see.
Understand your situation
Identify what type of credit issues you have, how old they are, whether they're satisfied, and your current credit behaviour.
Calculate what you can afford
Factor in higher interest rates for bad credit, all monthly commitments, and a buffer for unexpected expenses.
Work out your deposit
Calculate your deposit as a percentage of target property prices. 15%+ significantly improves your options for bad credit mortgages.
Speak to a specialist broker
Connect with a mortgage broker who specialises in adverse credit. They can assess your realistic options and guide your application to avoid unnecessary rejections.
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Adverse Credit
Our specialist adverse credit advisors work with lenders who consider all circumstances, including CCJs, defaults, and IVAs.
