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Adverse Credit Mortgages
Yes, many first-time buyers with defaults, CCJs, or missed payments still get accepted. The deposit and lenders available to you depend on how severe and how recent the credit issue is.
Yes, a first time buyer bad credit mortgage is achievable for many applicants, even with missed payments, defaults, County Court Judgments (CCJs), or a discharged bankruptcy.
Working with a broker who has access to specialist lenders can make a real difference, since most specialist lenders don't take applications directly from the public. Every application is still assessed individually, and adverse credit doesn't guarantee approval, but it rarely closes the door completely for a first-time buyer.
If you're asking whether a first time buyer bad credit mortgage is realistic, the short answer is yes for most applicants. Missed payments, defaults, CCJs, and even a discharged bankruptcy don't automatically rule you out of buying your first home. This guide focuses on first-time buyers specifically - if you're not buying for the first time, our main guide to adverse credit mortgages covers the full picture.
What changes is where you look. High-street banks and building societies tend to rely on strict, automated credit-scoring systems that reject anything outside a clean credit history. Specialist lenders work differently - they manually underwrite applications and consider the full picture, including how long ago the issue happened, how it's been resolved, and your income and outgoings today.
The trade-off is usually a bigger deposit and, in some cases, a smaller choice of lenders. It's not a guarantee of approval, and every application is assessed on its own merits, but adverse credit rarely closes the door completely for a first-time buyer. If you'd like broader guidance beyond adverse credit, our first-time buyer mortgage guide covers the basics too.
An adverse credit mortgage is simply a mortgage designed for applicants whose credit file shows one or more marks signalling past difficulty managing borrowing. It isn't one single thing - it's a spectrum, and lenders treat different issues very differently depending on how serious and how recent they are.
Credit issues that can affect a mortgage application include:
Recency and severity matter more than the label. A single missed phone bill payment three years ago is treated very differently to an unsatisfied CCJ registered last month. Checking your credit report with Experian, Equifax, and TransUnion before you apply gives you and your advisor a clear picture of exactly what lenders will see.
Your bad credit mortgage deposit requirement depends heavily on what's on your credit file and how long ago it happened. As a general guide for a first time buyer bad credit mortgage, here's how deposit requirements typically map to credit issues:
These figures are indicative only and depend on the lender's individual assessment of your circumstances - they aren't a guarantee of what you'll be offered. As a rough example, on a £200,000 property a 10% deposit is £20,000, while a 25% deposit is £50,000. Putting down a larger deposit than the minimum can also help reduce the rate premium many adverse credit applicants are asked to pay, since it lowers the lender's risk.
Remember to budget for other upfront costs too. First-time buyers benefit from stamp duty relief up to a certain property value - check current thresholds on gov.uk - but you'll still need to budget for solicitor fees and a survey on top of your deposit. Speak to an advisor to find out what's realistic for your specific credit history.
Expert help
Tell us about your credit history and we'll explain which lenders might consider your application and what deposit they're likely to ask for.
How much you can borrow depends primarily on your income, outgoings, and existing credit commitments - not your credit history alone. That said, adverse credit typically affects the income multiple a lender is willing to offer.
Where an applicant with a clean credit history might be offered towards the higher end of a lender's income multiple range, first-time buyers with adverse credit are more commonly offered towards the lower end. Every lender sets its own criteria, and some specialist lenders will look more favourably at strong, stable income even where credit issues exist. These ranges vary by lender and are always subject to individual assessment.
Affordability is also assessed on your regular outgoings, any dependants, and existing credit commitments like loan or credit card repayments. An advisor who knows which lenders are more flexible for your specific circumstances can help identify options that applying to a single lender directly might miss.
Not all credit issues are treated equally by mortgage lenders. Here's how the most common types affect a first-time buyer application.
A County Court Judgment is issued when a court rules that you owe an unpaid debt. Lenders look at whether it's satisfied (paid) or unsatisfied, how much it was for, and how long ago it was registered. A satisfied CCJ from several years ago is far less of an obstacle than an unsatisfied CCJ registered recently. See our full guide to getting a mortgage with a CCJ for a breakdown by lender criteria.
A default is registered when you've missed several consecutive payments and the lender formally closes the account. Defaults typically remain on your credit file for six years from the date they were registered, though their impact fades as they age. A default from four years ago that's since been settled is treated very differently to one registered in the last six months. Read more in our guide to a mortgage with defaults.
Individual Voluntary Arrangements and Debt Management Plans are formal or informal arrangements to repay debt over time. Most lenders want an IVA fully discharged before considering an application, and some ask for a further period afterwards. Specialist lenders are more likely to consider an ongoing DMP than mainstream lenders. See our guide to an IVA or DMP mortgage for more detail. If you're currently in an arrangement and finding it difficult to manage, Citizens Advice offers free, independent guidance.
Bankruptcy is typically discharged after 12 months, but most lenders require a further waiting period after discharge before they'll consider an application, and even then usually only through specialist lenders. The longer since discharge, and the cleaner your conduct since, the more options become available.
A single missed payment on a minor account, especially an older one, is usually the easiest type of adverse credit to work around. Multiple or recent missed payments, or missed payments on a mortgage or loan, carry more weight with underwriters. As with everything else, recency is key - lenders are generally most concerned with the last six to twelve months of your credit file.
The biggest mistake I see first-time buyers make is assuming a satisfied CCJ or default 'no longer counts'. It still shows on your file for six years and a lender will always ask about it. Being upfront about what happened and showing it's resolved makes a genuine difference to how an underwriter views your application.
Yes. When you apply for a joint mortgage, lenders assess both applicants' credit files, not just the stronger one. In most cases, the partner with the more serious credit history determines which lenders are willing to consider the application, even if the other applicant has a spotless record.
That doesn't mean a joint mortgage with bad credit is impossible. A couple of options are worth discussing with an advisor: applying in one name only if the other applicant's income isn't needed to meet affordability requirements, or finding a specialist lender comfortable assessing mixed credit profiles rather than declining automatically. Every lender weighs joint applications differently, so it's worth getting advice before assuming either partner's credit history rules you out.
Government-backed schemes are designed to make it easier to get onto the property ladder, but most were designed with clean credit applicants in mind. Here's how the main schemes work if you have adverse credit.
Government schemes
If you're a few months away from applying, there's a lot you can do to improve your chances of a first time buyer bad credit mortgage being accepted. For a deeper dive into rebuilding your file over time, see our full guide on how to improve your credit score for a mortgage.
Before you apply
Check all three credit reference agencies
Request your file from Experian, Equifax, and TransUnion and check carefully for errors. Lenders use different agencies, so a mistake on one report could be affecting your options without you realising.
Register on the electoral roll
Make sure you're registered to vote at your current address. Lenders use this to verify your identity, and being unregistered can cause delays or an automatic decline with some lenders.
Settle outstanding defaults or CCJs where possible
A satisfied default or CCJ is viewed more favourably than an unsatisfied one, even if the underlying issue is the same age. Clearing what you can before you apply widens your lender options.
Keep credit utilisation low
Try to stay below 30% of your available limit across credit cards and loans. High utilisation signals financial pressure to lenders, even without any missed payments.
Avoid new credit applications
Hold off on new credit cards, loans, or contracts that involve a credit check for at least six months before applying. Each hard search can affect your score and raises questions from underwriters.
Save the largest deposit you can
A bigger deposit reduces the lender's risk and can open up options that wouldn't be available at the minimum threshold, as well as reducing the rate premium you're likely to be offered.
The bad credit mortgage application process has a few extra steps compared to a standard application, mainly to protect your credit file while your options are explored.
How it works
Credit file review
Your advisor reviews your credit files across all three agencies to understand exactly what lenders will see, including the type, size, and age of any issues.
Soft-search eligibility checks
We check your eligibility against a range of specialist and high-street lenders using soft searches, which don't leave a mark on your credit file.
Agreement in Principle
Once a suitable lender is identified, they'll issue an Agreement in Principle. Some lenders use a soft search for this stage, others a hard search - your advisor will explain which applies.
Full application submitted
Your advisor submits the full application along with supporting documents, such as proof of income, bank statements, and identification.
Lender underwriting
The lender's underwriters assess the application in detail. Adverse credit cases are often manually reviewed rather than automatically approved, which can take a little longer.
Mortgage offer issued
Once underwriting is complete, the lender issues a formal mortgage offer and your solicitor can proceed towards completion.
Specialist adverse credit lenders often don't take applications directly from the public, which means going it alone can shut you out of some of the most suitable options. A broker's job is to match your specific credit history, deposit, and income against criteria from a wide range of lenders, rather than a single provider's rulebook.
As a Financial Conduct Authority-regulated credit broker, we're accountable for the advice we give. You can verify authorisation on the Financial Conduct Authority register. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
If you're currently struggling with debt repayments and finding the situation difficult, free and impartial guidance is available from MoneyHelper at moneyhelper.org.uk or by calling 0800 138 7777.
We compare a wide range of specialist and high-street lenders to find options that match your credit history.
Common questions
In many cases, yes. Lenders look at whether the CCJ is satisfied or unsatisfied, its value, and how long ago it was registered. A satisfied CCJ that's several years old is far easier to work with than an unsatisfied, recent one. Specialist lenders regularly accept first-time buyers with a CCJ on their file, though you'll usually need a larger deposit than someone with a clean credit history. See our guide to a <a href="/mortgages/adverse-credit-mortgages/mortgage-with-ccj/">mortgage with a CCJ</a> for more detail.
There's no single credit score that guarantees a mortgage, because Experian, Equifax, and TransUnion each use a different scoring model, and lenders don't rely on the score alone. Lenders look at what's actually on your credit file: missed payments, defaults, CCJs, and how you've managed credit recently. A higher score generally means more lender choice, but a lower score doesn't automatically rule out a mortgage, since specialist lenders assess the full picture rather than a single number.
It depends on the type and severity of the issue. Minor missed payments can sometimes be overlooked within a year or two if there's nothing more recent on your file. Defaults and CCJs typically need to be at least a few years old for the widest specialist lender choice, though some lenders will consider more recent issues at a higher deposit. Bankruptcy and IVAs usually require a longer wait after discharge. An advisor can tell you which lenders would consider your specific timeline.
It can, if it's not managed carefully. A full mortgage application involves a hard credit search, which leaves a mark on your file and can lower your score slightly. That's why advisors typically start with soft-search eligibility checks across a range of lenders first, since these don't leave a footprint, before submitting a full application to the lender most likely to accept you. This approach helps protect your credit file from unnecessary hard searches while you explore your options.
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