First time buyers with bad credit

First time buyer with bad credit? You’re in the right place. We’re specialist mortgage brokers with a proven track record of making mortgages possible for first time buyers with bad credit, like you.

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Can I get a mortgage as a first-time buyer with bad credit?

Having a bad credit rating can impact your ability to get a mortgage whether it’s your first time, or you’ve gone through lots of homes. So having bad credit if you’re a first-time buyer can make it more difficult to get a mortgage compared to someone who has an excellent credit rating

But, even if you’ve been told it’s impossible by a mainstream lender or highstreet bank, there’s specialist lenders who’ll consider you. A specialist bad credit mortgage broker will be able to understand your situation and suggest options.

Read our Complete First Time Buyers Guide for all you need to know about getting a mortgage for the first time.

Got questions

How does bad credit affect my mortgage application as a first-time buyer?

This depends on the specific issue that exists on your credit file. Here are some common bad credit issues:

Each of these can affect your mortgage application in different ways. 

As a first-time buyer, the amount a lender will allow you to borrow is based on your current household income, as well as their assessment of your affordability based on outgoings (including debt repayments). 

Sometimes, a lender might want you to put down a higher deposit due to offering a lower loan-to-value (LTV) mortgage if you have bad credit. If you’re paying back debts every month, a lender will want to know the details of that too so they can judge your affordability. Read more in our Guide: How to Get a Mortgage With Bad Credit.

Should I improve my credit score before applying for a mortgage?

Usually, the higher your credit score, the easier it is to get approved for a mortgage. So it’s always a good idea to do what you can to improve your score before applying if you can. If you’re really pushed for time, and have a low credit score but need to get a mortgage soon; it’s best to speak to a specialist mortgage broker (like us!) who’ll be able to advise you on your options.

Can one person in a joint application’s bad credit history impact the application?

Yes, if you’re applying for a joint mortgage and one of you has bad credit, the mortgage lender will take both of your credit histories into account when looking at your application.

Most lenders will add your credit scores together, and you’ll need to meet their minimum score to be considered. So if one of you has a really good credit rating then this can work in your favour. 

Whether or not your application is approved will depend on the severity of any issues on your credit file. Lenders will also want to know how long ago the issue was, how much money was involved, and what has been done since to improve. For example, bankruptcies and payday loans will be looked on less favourably than a few missed payments every now and then.

Read more in our Guide: Getting a Joint Mortgage When One Applicant Has Bad Credit.

Our Mortgage Experts can advise which lenders will be most likely to accept you.

Will my mortgage rate be higher because of my bad credit?

The interest rate you’ll pay will depend on a few different things. Factors include the kind of bad credit you have and how long ago the issue was. Mortgage lenders see bad credit problems as a sign you could be a ‘high risk’ borrower. 

One way lenders can overcome this ‘risk’ is by offering higher interest rates to those with credit issues so that their return is higher. These kinds of things differ between lenders, so your mortgage broker can help you understand your options, what rate you may be able to get and how much your monthly repayments are likely to be.

Read more in our Guide: Mortgage Types and Rates for Bad Credit.

Do I need to find a guarantor?

One of the ways that first-time buyers with bad credit can get on the property ladder is to take out a guarantor mortgage. This is when someone else (could be a family member or friend) acts as a guarantor on your mortgage which means they guarantee they’ll pay it if you can’t. 

Read our Guide: Guarantor Mortgages Explained for all you need to know.

Does any outstanding debt impact my chances of a successful mortgage application?

Having debt could affect your chances of getting a mortgage, but it’lll depend on a few things like how large the debt is, and if and how you’re paying it back. A lender will assume that you’re less likely to afford monthly mortgage repayments if you’re currently in debt. Being in debt might also affect the amount you’re allowed to borrow from a lender. So it’s a good idea to speak to a specialist mortgage broker (like us!) to understand your options.

Read more in our Guide: Getting a Mortgage with Credit Card Debt.

How can I improve my credit score before getting a mortgage?

Here are some top tips for improving your credit score as a first time buyer with bad credit:

  • If you can, 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.

Read more tips on boosting your credit rating before applying for 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

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.


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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.

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