Buying a Home
Remortgaging
Landlord
Specialist
Secured Loans
Debt Consolidation
Conveyancing
Finding a Solicitor
First time buyer
Missed payments, defaults, CCJs or an IVA don't have to rule you out. We compare options from specialist lenders who assess your full circumstances, not just a credit score.
Yes, you can get a first time buyer mortgage with bad credit. High-street banks tend to decline applicants with missed payments, defaults, County Court Judgements or historic Individual Voluntary Arrangements, but a panel of specialist lenders exists specifically to assess these cases individually rather than relying on a single credit score cut-off.
The exact outcome depends on the type of credit issue, how long ago it happened, your income, and the deposit you can put down. A mortgage advisor with access to specialist adverse credit lenders can assess your circumstances and identify which lenders are most likely to accept your application.
The good news is that a first time buyer with bad credit mortgage is very much possible, provided you approach lenders who specialise in adverse credit rather than applying directly to a high-street bank.
'Bad credit' isn't a single number a mortgage lender checks against a pass or fail line. Instead, underwriters look at the type of credit issue you've had, how serious it was, how long ago it happened, and whether it's been resolved. Lenders typically treat the following as adverse credit markers:
If you're dealing with ongoing debt problems rather than a one-off blip, Citizens Advice offers free, independent guidance on managing debt before you apply for a mortgage. For the basics of deposits, affordability and the application process itself, our first time buyer mortgage guide is a good place to start.
Yes, a first time buyer can get a mortgage with bad credit, though not every lender will consider your application. High-street banks and building societies generally apply strict, automated credit-scoring criteria and will decline applicants with recent adverse credit outright.
Specialist lenders operate differently. Names such as Kensington, Bluestone, Pepper Money, Norton Home Loans and Together focus specifically on borrowers that mainstream lenders turn away, assessing each case on its individual circumstances rather than a single credit score.
Applying directly to a bank that later declines you can leave a mark on your credit file and make your next application harder. A mortgage advisor can run a soft search across a wide range of lenders first, so you only submit a full application to a lender likely to accept it. For a broader look at how adverse credit affects mortgage applications generally, see our bad credit mortgage options guide.
A lot of first time buyers assume a rejection from one lender means the door is closed everywhere. It usually just means that lender's specific criteria didn't fit your circumstances. Different specialist lenders weigh the same CCJ or default very differently.
Bad credit mortgages
Tell us about your situation and we'll compare options from a wide range of lenders, including specialists who focus on adverse credit.
Most first time buyers with a clean credit history can access mortgages with a 5% deposit. With bad credit, how much you need depends heavily on the type of issue, how recent it is, and whether it's been resolved. As a general guide, minor and older issues might only need a 5-10% deposit, while more serious or recent problems can require 20% or more.
A bigger deposit reduces the loan-to-value (LTV) ratio, which lowers the lender's risk and widens your choice of lenders, including some that wouldn't consider a higher-LTV application with the same credit history. Whatever deposit you're working with, it's a serious financial commitment: your home may be repossessed if you do not keep up repayments on your mortgage.
Even a small increase in deposit, say from 10% to 15%, can move you into a different lender tier altogether. I've seen first time buyers unlock significantly more choice by waiting a few extra months to save an additional 5%, rather than rushing into the first offer available.
Most specialist lenders will lend up to around four to four and a half times your annual income, with some considering up to five times for stronger applications. Bad credit doesn't automatically reduce this multiple, but it does narrow the pool of lenders willing to offer it.
Every lender, regardless of your credit history, runs an affordability assessment based on your income, outgoings and existing debt, not just an income multiple. For example, someone earning £35,000 a year might be able to borrow up to roughly £157,500 at four and a half times income, though the actual figure depends on outgoings, dependants and the specific lender's own calculations.
If you're applying jointly and only one of you has credit issues, lenders generally assess the application based on the weaker credit profile. An advisor can identify which lenders place more weight on the stronger applicant's profile, which can open up more options than applying to the wrong lender directly.
Use our mortgage affordability calculator to get an early estimate of what you might be able to borrow before speaking to an advisor.
Bad credit mortgages typically come with a rate premium compared with standard mortgage products. Lenders price for risk, so applicants with more recent or more serious credit issues are usually offered less competitive rates than those with a clean credit history at the same deposit level.
This premium isn't fixed. It narrows as your loan-to-value ratio falls, and as your credit issues age; a satisfied default from four years ago is priced very differently to one that's still outstanding. Because rates and lending criteria change frequently and vary between lenders, we don't publish specific figures here. An advisor can give you an accurate, up-to-date picture based on your circumstances, comparing options across a wide range of lenders rather than a single provider's headline rate.
Some government-backed schemes can help first time buyers with bad credit get onto the property ladder. A scheme existing nationally doesn't guarantee access to it though; it depends on which lenders offer it and whether your credit history meets that lender's own criteria, so an advisor familiar with adverse credit lending is essential for matching the right scheme to the right lender.
Government schemes
Get a clearer picture of your options before committing to an application.
How long ago a credit issue happened often matters more than the issue itself. A County Court Judgement registered five years ago carries far less weight with most lenders than one registered six months ago, even if the amounts are similar.
Most specialist lenders apply what's known as a 'seasoning' period: a minimum amount of time that must have passed since the issue occurred or was resolved. As a general guide, defaults older than three to four years, satisfied CCJs that are three or more years old, and bankruptcies discharged three to six years ago tend to be far more workable than recent equivalents, though every lender's policy differs.
This is general guidance rather than individual advice. An advisor can check your specific timeline against current lender criteria.
There are practical, specific steps you can take in the months before applying that make a real difference to how lenders view your application, beyond the generic advice to pay your bills on time.
Your home may be repossessed if you do not keep up repayments on your mortgage, so it's worth taking the time to get your finances into the strongest possible shape before you commit to an application.
Get application-ready
Check your credit reports
Request your reports from Experian, Equifax and TransUnion and dispute any inaccuracies you find. Errors are more common than you'd think.
Register on the electoral roll
If you're not already registered at your current address, this alone can improve how lenders view your application.
Settle outstanding CCJs or defaults
Where possible, pay off any outstanding County Court Judgements or defaults before you apply. A satisfied debt is viewed more favourably than an unsatisfied one.
Avoid new credit applications
Try not to apply for new credit, including credit cards, car finance or loans, in the six months before you apply for a mortgage. Each hard search can affect your score.
Build a recent track record
A run of on-time payments across your existing accounts, even a short one, helps demonstrate that your finances have stabilised.
Save the biggest deposit you can
Each additional 5% you save can move you into a different lender tier, sometimes significantly widening your options.
Steer clear of payday loans
Avoid using payday loans in the 12 months before you apply. Some lenders flag this specifically, regardless of whether it's been repaid.
Use an advisor instead of applying direct
An advisor can run a soft search across a wide range of lenders without leaving a mark on your credit file, rather than risking a hard search with a lender likely to decline you.
We're a Financial Conduct Authority-regulated mortgage broker, which means our advisors are held to strict standards around how they assess and recommend mortgage products. You can check any regulated firm's status on the Financial Conduct Authority register.
We compare a wide range of lenders, including specialist providers that focus specifically on adverse credit, rather than the single-lender panel you'd get walking into a branch. We run a soft search first to identify lenders likely to consider your circumstances, and nothing is submitted as a full application without your agreement, protecting your credit file from unnecessary hard searches.
If you're currently struggling with debt rather than dealing with a historic credit issue, it's worth speaking to a free debt charity like MoneyHelper (0800 138 7777) alongside any mortgage advice, so you tackle the underlying problem as well as the mortgage question.
Why choose us
Common questions
Yes, in many cases. It depends on the CCJ's amount, how long ago it was registered, and whether it's been satisfied (paid). Specialist lenders regularly consider CCJs that high-street banks would decline outright, particularly if the CCJ is older or has been settled.
There's no single credit score that guarantees approval, since each lender uses its own scoring system and criteria. Generally, a clean credit history with no missed payments, defaults, or county court judgments in recent years puts you in a stronger position, but some specialist lenders do consider applicants with past credit issues. Checking your credit report with all three credit reference agencies before you apply gives you the clearest picture of where you stand.
It can affect your options, but it won't necessarily stop you. Some high-street lenders decline applicants with any payday loan history, even if it's been repaid. Specialist lenders are often more flexible, especially if the loan was repaid on time and it's been 12 months or more since you last used one.
Yes, this is possible once the Individual Voluntary Arrangement (IVA) has been discharged and enough time has passed, typically three years or more. Very few lenders will consider an active IVA, so a specialist advisor is essential to identify which lenders might accept your application.
In most cases, yes, at least initially, since lenders price for the extra risk. That said, a larger deposit can narrow the gap considerably, and rates often improve when you remortgage a few years later once your credit history has recovered and your loan-to-value has fallen.
What our clients say
Shortly after I spoke with Anna, she was also very helpful and made it effortless and a nice experience.
Had a really good experience regarding arranging a secured loan. They introduced me to a great advisor. Thanks for the help.
For once a loan transaction without stress and complications. Very impressed and highly recommended.
Thrilled to share my exceptional experience with Money Saving Advisors. The website made it incredibly simple and easy to connect with an advisor. They helped me find the best deal on my remortgage and secured a very competitive interest rate!
Great advice and money saved on mortgage.
I have previously declined a loan of the value I needed from various brokers, but this website found me a reputable broker with surprisingly decent rates.
First Time Buyers
Our first time buyer specialists will guide you through every step, from deposit to completion.
