Bad credit mortgages

Need a mortgage with bad credit? You’re in the right place. We're specialist bad credit mortgage brokers with a proven track record of making mortgages possible for people with bad credit, like you.

Get started online
Illustration of a man staring at his motorcycle with a flat rear tyre
Featured in:

Some banks and mortgage brokers will make you feel like a bad person when they refuse to give you a mortgage. Automated online mortgage advisors won’t judge for themselves. It’s a case of: Bad credit = Computer says ‘No’. We don’t think that’s fair. So we're shining a light on options available for mortgages with poor credit.

We're bad credit mortgage brokers with a proven track record of making bad credit mortgages possible for people like you.

Can I get a mortgage if I have bad credit?

Yes, you can absolutely get a mortgage with bad credit! When you apply for a mortgage, lenders run a credit check against your name to decide your level of ‘risk’. Lenders base all their decisions on risk - the more ‘risky’ you seem, the less likely they are to lend to you, as they’ll assume you’ll struggle to make your repayments. 

Some bad credit issues will have a bigger impact on your chances of getting approved than others. For example, a late payment to your mobile phone company won’t affect you as much as defaulting on a loan or going bankrupt.

If a lender decides you’re a ‘high-risk’ borrower because of bad credit, you could:

  • Be asked to put down a bigger deposit

  • Be given a less competitive deal with a higher interest rate

  • Be turned down completely 

However, there’s hope! High street banks and mainstream mortgage lenders have really strict criteria when it comes to who they'll lend to. Most of them aren’t set up to deal with you if your situation’s a little different from what they consider the ‘norm’. But by working with a specialist bad credit mortgage broker (like us) you can find a lender who knows how to deal with your situation, and is more likely to approve your application.

We don’t do the ‘norm’ at Haysto. We focus solely on the specialist mortgage space, and have great relationships with specialist lenders and a super track record of getting mortgages for people who thought they had no chance. If you’ve struggled with the high street or your bank’s turned you down, talk to one of our friendly advisors to find out your options.

GOT QUESTIONS?

What is bad credit?

‘Bad credit’ is a phrase often used to mean you’ve got a low credit score. Your credit score is a number between 0-999, depending on which credit reference agency you use. The higher it is, the better your credit score is, the lower it is, the worse your score is. 

A low credit score means you’ve had credit issues in the past that have negatively affected your score. You can have a low credit score for loads of reasons. For example, missing a payment or paying it late. 

There are three main credit referencing agencies in the UK – Experian, Equifax and TransUnion. 

Each of these agencies can give you a credit report, but they may all show you different information. We recommend using checkmyfile because that gives you a report that shows the information from all three credit referencing agencies alongside each other. It’s the most thorough way to see what’s in your credit file. 

Each agency also has its own score system. For example: 

Experian gives a credit score out of 999. They class a 'good' credit score to be anywhere between 881 and 960. And a  'fair' or ‘average’ score is between 721 and 880.

Equifax gives a credit score out of 700. They class a ‘good’ credit score as anything that's 420 or above.

TransUnion gives a credit score out of 710.  Scores between 604-627 are considered ‘good’ and scores of 628 and above are considered ‘excellent’.

*Heads up, when you click through to our affiliate links, we may earn a small commission at no extra cost to you. We only recommend sites we truly trust and believe in.

What is a bad credit mortgage?

You can end up with a bad credit history for many different reasons. It could be a missed or late credit card or loan repayment, a payday loan or applying for multiple credit cards. Sometimes these things can result in CCJs, IVAs, a debt management plan or even bankruptcy. All of these can affect your credit score. Having a bad credit history can make it more difficult to get approved for a mortgage, but it’s still possible. 

There isn’t such a thing as a ‘bad credit mortgage’ – but there are specialist lenders who have more experience giving mortgages to people with bad credit than others. You just need a bad credit mortgage broker to get you the right lender. That’s where we come in! Our Mortgage Experts have lots of experience getting mortgages for people with bad credit. Get started online.

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

The kind of deposit you’ll need will depend on your individual situation and the type of credit issues you’ve had. For example, if you’ve had a repossession in the last few years, you could be asked to put down a deposit of around 25-30%, depending on the details of your repossession. If your bad credit is due to something like being in an individual voluntary agreement (IVA), you could be asked to put a deposit down of around 15-25%. 

In the UK, the minimum deposit you can put down is 5% of your property’s value. If a lender considers you ‘risky’ (such as applicants with adverse credit) they might want you to put down a higher deposit, but it will all depend on your individual circumstances. 

Higher deposits often signal to a lender that you’re good for the money and it makes them a lot more likely to lend to you.

A higher deposit also means you can reduce your monthly repayments. So if you can afford a higher deposit, it will really improve your chances of being accepted.

Read more in our Guide: What Deposit Do I Need for a Bad Credit Mortgage?

How does having a poor credit score affect my application?

A poor credit score can mean that there are fewer mortgage lenders available to you. Always be prepared to discuss and explain your credit history with your mortgage broker who’ll explain the situation to lenders when they’re making an application for you. A lot of mainstream lenders don’t accept people with bad credit, but it just means you need to find a specialist bad credit mortgage company instead. 

Depending on your specific situation, you might find that your interest rate is higher and that you’re asked to put down a larger deposit when buying your home. But speaking to a bad credit mortgage broker who can find you a specialist lender means you’re likely to find the right mortgage for you.

Read our Guide to getting a mortgage with bad credit.

What other factors besides bad credit affect my mortgage application?

Lenders all have different lending criteria. The other factors a lender will look at to decide if they will consider giving you a mortgage are things like:

How old you are: Some lenders have age caps on who they’re willing to lend to. They might not want to lend to people who are young, or older. Some lenders don’t have any age caps as long as you can prove you’re able to pay the mortgage. 

Your income and outgoings: Most lenders will want to know what your income is. They want to know you have a stable income so they can decide how much they’re willing to lend to you. 

The size of your deposit: If you have bad credit, most lenders will want to see a larger deposit on the property. That’s because they’ll want to reduce the perceived ‘risk’ of lending to you. A larger deposit means less risk to them.

How will my salary affect my mortgage application?

Whether or not you have bad credit, your salary or earnings will always be a factor when you’re applying for a mortgage. That’s because all lenders will have criteria for checking you can afford the property you’re wanting to buy. 

Most mortgage lenders tend to not offer anything much higher than 4.5x your annual salary or income, and this will depend on your own affordability and individual circumstances.

Usually, having a larger income will mean you will have access to more mortgage options, but if you have bad credit and you want the highest loan possible, you’ll have to find a lender who is willing to give you the highest multiple of your income. 

Having a low income and bad credit can make it seem impossible to get a mortgage, but there's still plenty of options open to you. You could get a guarantor mortgage, or consider a government help scheme such as Shared Ownership.

Do all lenders accept applicants with bad credit history?

Sadly, not all lenders will accept applicants with bad credit. If you have a bad credit history, many lenders just aren’t set up to deal with bad credit mortgages. So some just won’t consider you. But there are plenty of lenders who will consider you. Some lenders are specialists, and they don’t offer mortgages directly to borrowers. Some mainstream lenders like highstreet banks will consider you, but not all of them. 

Automated online mortgage advisors will usually decline you as soon as they detect your bad credit. So it’s always best to speak to a real person. 

Working with a specialist bad credit mortgage broker is always a good idea because they’ll do two things: they’ll look at your unique situation in detail to understand your bad credit history and they’ll know the specialist lenders who will consider your application. Our Mortgage Experts do just that. Make a quick enquiry to get started.

Which lenders offer bad credit mortgages?

There’s plenty of lenders who’ll consider you if you have bad credit. It’s a myth that you can’t get a mortgage with bad/poor credit. All lenders will want to know the details of your credit history – the reason for your bad credit, the age of the issues and the severity. They’ll use that information to decide what kind of mortgage rates to offer you. 

We work with specialist bad credit mortgage lenders who’ll consider you if you have a poor credit rating. Some you’ll know, some you won’t. Take a look at the top lenders for bad credit.

What credit score do I need to get a mortgage?

There isn’t a specific credit score you need to be able to get a mortgage. That’s because you have a different credit score depending on where you check it. For example, if you check your score with Experian, your score will be out of 999, but if you check with Equifax, it’ll be out of 700. You can get a look at how you score across all the big credit agencies with a free trial of checkmyfile* (usually £14.99 a month and you can cancel any time).

Read more in our Guide: What credit score do I need to get a mortgage?

*Heads up, when you click through to our affiliate links, we may earn a small commission at no extra cost to you. We only recommend sites we truly trust and believe in.

How does bad credit impact mortgage repayments?

When a lender looks at your credit history, they’ll decide based on the information they have what kind of mortgage rate they want to offer you. They’ll decide the rate based on how likely they think you are to pay late or miss payments. 

If they think you’re likely to miss payments or pay late, they’re likely to put you on a higher interest rate (APR) and this will increase the cost of your monthly mortgage repayments. 

You can use our mortgage repayment calculator to see how a higher interest rate could change how much your mortgage costs each month.

What is a bad credit score?

A bad credit score depends on which credit reference agency you check your score with. A bad credit score is classed as being in the category ‘Very Poor’, or ‘Poor’. But scores and categories differ from credit agency to credit agency. Use the table below to see how they can be different depending on which agency you use. 

Read our Guide What is a bad credit score? for lots of information on bad credit scores, good credit scores and everything in between.

Experian

Equifax

TransUnion

Excellent

961-999

466-700

628-710

Good

881-960

420-465

604-627

Fair

721-880

380-419

566-603

Poor

561-720

280-379

561-565

Very Poor

0-561

0-279

0-550

How can I check my credit score?

To get a thorough and full rundown of your credit report, we suggest using checkmyfile*.

There are three main credit reference agencies in the UK. Each of these major credit checkers will show you slightly different information - that’s because it depends on who they have affiliations with.

  1. Experian

  2. Equifax

  3. TransUnion

For example, if you have a utility account with British Gas and miss a payment, British Gas might have an affiliation with Experian but not TransUnion. So your credit score would be lower when you check on Experian than if you checked on TransUnion. 

We partner with checkmyfile* because it’s the only credit report that shows you all three of these credit checkers in one report. So you get a complete view of your entire credit history.

Sign up by following this link to checkmyfile and get a 30 day free trial (usually £14.99 a month and you can cancel any time).

If you notice anything that looks to be inaccurate or that you feel should be disputed, you can flag it to put things right. 

It’s a good idea to get a copy of your credit before you make a mortgage application, or get a Decision in Principle (DIP). Your broker will chat you through your report and explain what will help or hinder your mortgage application and give you your options.

*Heads up, when you click through to our affiliate links, we may earn a small commission at no extra cost to you. We only recommend sites we truly trust and believe in.

How can I improve my credit rating?

Here are some top tips for improving your score:

  • Get a full credit check from checkmyfile* and go through it with your Mortgage Expert. They’ll help you understand your credit history and advise you on what will help your individual situation.

  • Pay off any outstanding debt in full (including credit cards, loans, and similar). If that’s not possible, just pay as much as you can.

  • Make sure you’re listed on the electoral roll.

  • Consider reviewing the number of credit cards and accounts you’ve got open. Even if they don’t have outstanding balances. 

  • Use your available credit in a sensible way. For example, make small purchases on your credit card and pay off the balance in full each month. That can help build your score because it shows that you’re making repayments on time.

  • Another option is to wait until bad credit issues like CCJS or IVAs are removed from your file.

*Heads up, when you click through to our affiliate links, we may earn a small commission at no extra cost to you. We only recommend sites we truly trust and believe in.

Can I get a mortgage with a 550 credit score?

It’s absolutely possible to get a mortgage with a score of 550. You can get a mortgage even with a very low credit score. The lower your score, the fewer options you'll have, but it’s still possible. Your chances will improve greatly if you get help from a bad credit mortgage broker.

Read more in our Guide: What credit score do I need to get a mortgage?

Why use Haysto?

We get how it feels when you’re refused a mortgage. We’ve been there. Haysto exists because the mortgage world is broken. If you don’t have a shiny credit rating, you’re self-employed with a complex income, or just don’t fit the mould, the odds are completely stacked against you. We just don’t think that’s fair.

Read our story
haysto

We help when others won’t

Unlike others, we only work on bad credit, self-employed and complex mortgages. That’s all we do. And we’re up for a challenge.

haysto

Speak to a real person

No robots, no automated answers. We use technology to connect you to a real person. Not replace them.

haysto

Your success is our success

We only get paid when your mortgage is approved.

useful links

Our Guides

Applying for a mortgage or understanding your options shouldn't be confusing, yet there are just so many myths doing the rounds and it's not easy to know where to turn to get the right advice.
Our calculators

Bad Credit Calculator

See how bad credit issues affect how much you can borrow on a mortgage by using our bad credit calculator.

Illustration of bad-credit-calculator-1602369168.svg

Haven't we met before?