Getting a Mortgage With Bad Credit

A poor credit rating doesn’t mean you can’t get a mortgage. With plenty of specialist mortgage lenders available to help people who have bad credit, it’s a myth that you have to wait until you have a perfect credit score before you can apply.  

Our guide to bad credit mortgages explains how all this is possible and why Haysto can help when others can’t.  

Can you get a mortgage with bad credit?

Yes, it’s possible. Bad credit can make it more difficult to get a mortgage, and you may need to find a specialist mortgage lender, but it’s not a permanent barrier. It really depends on the type of bad credit issue you’ve had, when it happened, and the amount of money involved. 

What is bad credit? 

Bad credit is a common term used when someone has a low credit score. It’s also often referred to as adverse credit or poor credit. Mortgage lenders use credit scores as one of the key eligibility criteria when deciding whether or not to approve a mortgage application. A low credit score can make it more challenging to get a mortgage. 

What are bad credit mortgages?

Bad credit mortgages work exactly the same way as traditional mortgages. The main difference between the two is that bad credit mortgages (also known as adverse credit mortgages) are designed for people with low credit scores. As a result, they tend to come with higher interest rates and larger deposit requirements to offset the perceived additional risk. 

If you have a poor credit rating, finding a lender who specialises in mortgages for bad credit and will assess each one on a case-by-case basis is the smarter route to take rather than placing your application at the mercy of the more mainstream lenders' ‘computer says no’ approach.

This is where we can help. Our mortgage team already has long-standing relationships with the best bad credit mortgage lenders. With our expertise and knowledge of how each of these lenders look at applications, you’ll stand a much better chance of getting the mortgage you need. 

What issues can impact your credit score?

There are several types of adverse credit, all of which can have a varying effect on your credit score, depending on when they happened and the amounts involved, as outlined in the table below. 

For example, one late payment registered two years ago will not negatively affect your chances of getting a mortgage to the same extent as a recent bankruptcy or default. The mortgage lender you approach is also crucial, as some are more understanding than others regarding how certain life events can impact your credit history. 

If you’ve never needed to borrow money before and, effectively, have no credit history at all, this can also cause issues with your credit score and make it more difficult for you to arrange finance in the future. 

Source: Haysto data (last updated, July 2025)

What minimum credit score do you need for a mortgage?

There isn’t a specific magic number you need to hit which will guarantee your mortgage application will be approved. That’s because mortgage lenders, in addition to your credit score, will consider a range of other factors such as your age, income and outgoings, employment status and property type. 

So, for example, you could have a good credit score but not enough disposable income to prove you can afford the mortgage repayments. Or the loan term may take you beyond the lender's maximum age limits. 

Another reason there isn’t a set minimum credit score needed to secure a mortgage is that the Credit Reference Agencies (CRAs) all use their own scoring system. Experian’s scoring range is between 0 and 999, Equifax 0 to 700, and TransUnion 0 to 710, with each having its own scale for determining what is a good score and what is a poor score. 

The table below illustrates how this works. 

Source: Experian, Equifax and TransUnion

Despite credit scores not being the only factor a mortgage lender considers when assessing your eligibility, anyone with a ‘Good’ or ‘Excellent’ rating naturally has a stronger case for having their application approved. 

If your credit score falls below those thresholds, it's important to consider how to rebuild it before submitting a mortgage application.  

How to check your credit score

The UK has three main Credit Reference Agencies (CRAs): Experian, Equifax, and TransUnion. Each agency holds slightly different information about your financial history and uses its own scoring system. 

You can contact each agency separately to find out your credit score. Alternatively, you can go to Checkmyfile* and receive a detailed overview of the information held by all three agencies regarding your credit record on the same report.  

It’s important to check your credit record on a regular basis, particularly if you currently have a low score and are looking to take steps to improve it. The Credit Agencies update their information every month, so you can see your score improve each time this happens. 

Checkmyfile allows you to download your report for free with a 30-day trial, followed by a monthly fee of £14.99 (you can cancel at any time). 

*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 trust and believe in. 

How to get a mortgage with bad credit

There are five essential steps you can take before you apply for a mortgage that can make a huge difference to securing the borrowing you need. 

1. Check your credit history

2. Amend any errors on your credit report

3. Rebuild your credit score

4. Save for a deposit

5. Speak to a mortgage broker

Check your credit history

Before you do anything else, you need to know your current credit score and what information is showing on your credit report. Downloading your credit report will give you all of this information. You can then check to see what’s registered and identify any errors or inaccuracies, which you can remove. 

Amend any errors on your credit report

It’s essential to review every aspect of your Credit Report to ensure it's 100% accurate and up to date, including your personal information, such as name, date of birth, and address. 

This also includes any fraudulent activity that may have occurred. If there is, what’s known as a Cifas marker** (Credit Industry Fraud Avoidance System) will show on your report. This is added to protect you and let you know that you may have been a victim of fraud. 

If you spot anything suspicious on your report (or any mistakes), you can contact the relevant credit reference agency to request its removal.  

Rebuild your credit score

It’s important to remember that a bad credit record and low credit score are not permanent - they can be repaired if you take certain measures. 

Here’s a list of credit score improvement tips that will help boost your credit rating:

• Registering on the electoral roll** at your residential address

• Satisfy all outstanding debts which have affected your credit score

• Manage your outgoings and make sure you pay all of your utility bills and other financial commitments on time

• Use any existing credit accounts (credit cards, overdrafts, etc.) responsibly

• If you live with a partner, make sure your name is on at least some of the utility bills, and you’re also making payments from your bank account

• Avoid regularly applying for new credit accounts (this is particularly important if you’re about to apply for a mortgage)

• Keep checking your credit report on a regular basis. 

Taking these steps will help rebuild your credit history and move your credit score from bad to good. It can take time, but improving your credit record will make you a more attractive applicant to a broader range of mortgage lenders. 

Save for a deposit

Mortgages for bad credit usually require a higher deposit than traditional mortgages. The amount of deposit you’ll need can vary from as low as 5%-10% if the credit issue you’ve had is relatively minor, up to 20%-30% if it’s a more severe type. 

Either way, it’s important to start saving as much as you’re able, as soon as you can, so you don’t suffer any delays when you’re ready to apply for your mortgage. 

Speak to a specialist bad credit mortgage broker

As tempting as it may be to approach a high-street mortgage lender directly, if you have a poor credit score, this can often result in your application being rejected, leaving you back at square one. This is why seeking the help of an experienced mortgage broker is the better move. 

How can a bad credit mortgage broker help?

Specialist bad credit mortgage lenders - the ones who will look in much more detail at your application and have a better understanding of even the most complex bad credit issues - are typically only accessible through a mortgage broker. This means your chances of finding the right lender are far greater if you use a mortgage broker with the right experience in this area. 

Your broker will be able to review your specific circumstances and identify which specialist lender is best placed to help, as well as the one offering the most competitive rates for bad credit mortgages. 

It’s also true to say that bad credit mortgage applications are usually more complex and require more documentary evidence. This means they can take longer to process. Your mortgage broker will act as your guide, using their expertise to ensure your application is properly prepared. 

To find out more about what information lenders will need, take a look at our guide: What Mortgage Lenders Look For In Applicants. 

Do you pay a fee?

Yes, the very best bad credit mortgage brokers will charge a fee for their services. But, the fee you’ll pay will be determined by the level of complexity and research required by the broker, and in most cases (like Haysto!), the full fee is only payable once a mortgage offer has been successfully received from a lender. 

Bad credit mortgage lenders - eligibility criteria

At Haysto, we work with several of the best-known specialist mortgage lenders, all of whom have an exceptional track record of accepting applications from people with a poor credit history. These lenders include (but are not limited to):

• Bluestone Mortgages

• Pepper Money

• Vida Homeloans

• Aldermore

• Kensington Mortgages

• Buckinghamshire Building Society

Due to this strong relationship, our advisors have a clear understanding of each lender’s specific eligibility criteria. 

A mortgage lender’s requirements and decision-making process will largely depend on the type of credit issue that’s occurred. The table below provides a snapshot of the typical eligibility requirements for a selection of credit issues. 

The above information was sourced from Criteria Brain and was correct at the time of writing (last updated, July 2025). All mortgage lenders' eligibility criteria can be subject to change at any time at the lender’s discretion.

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

The amount of deposit you’ll need will depend on the type of credit issue you’ve had and how long since it was registered. For a minor issue, the required deposit could be as low as 5% to 10%, leaving a mortgage loan-to-value (LTV) of between 90% to 95%. For more severe issues, such as a previous bankruptcy or IVA, the deposit could be as high as 30%.  

If you’ve had a CCJ or mortgage default within the last two years, the typical deposit requirement is at least 15%. If it was over three years ago, it’s possible that some mortgage lenders will accept a 10% deposit. Regardless of the credit issue, a larger deposit will strengthen your mortgage application and offer a wider range of lenders to choose from. 

To find out how much you could borrow and what your repayments might be, take a look at our Bad Credit Mortgage Calculator. This will provide a snapshot of the monthly and initial costs involved, allowing you to make an informed decision about the value of property that fits within your affordable budget. 

It’s worth noting that your deposit can come from various sources as long as you can provide satisfactory proof. If it's from savings, a lender would usually want to see your last three months' bank statements. If it’s a family gift, a letter from the donor would be required. If it’s from an inheritance, a letter from the executor would be required. 

Specialist types of bad credit mortgages

In addition to the standard bad credit mortgage, there’s also a number of other options available which may prove to be a better fit, depending on your circumstances, such as: 

• Guarantor Mortgages. Allows for a family member (usually a parent) to act as a guarantor for their child, which provides a mortgage lender with the security of knowing the repayments will be covered by them if the child is unable to pay. 

• Joint Borrower Sole Proprietor Mortgages. A type of joint mortgage - again, usually taken out by a child with their parent(s) - where all applicants are jointly responsible for the repayments, but the primary applicant (the child) remains the sole owner of the property. 

Whilst there’s no guarantee you’ll be accepted with bad credit for these types of mortgages, they do offer the opportunity for someone who has a low credit score to get on the property ladder while rebuilding their credit rating at the same time. 

Pros and cons of bad credit mortgages

If you’re still in two minds as to whether you should try for a mortgage now or wait until your credit score improves, here’s a summary of the main benefits and drawbacks involved:

Benefits

• A bad credit mortgage means you don’t have to wait to get a foot on the property ladder

• With each mortgage repayment you make you’ll be repairing your credit score and this could help you secure a cheaper rate when you come to remortgage

• Buying a property now, using a bad credit mortgage, could save you more money in the long run if house prices climb while you take steps to improve your credit score

Drawbacks

• Higher interest rates mean your repayments will be more expensive than for someone with a good credit score

• Bad credit mortgages usually come with larger deposit requirements

• Smaller pool of mortgage lenders to select from means the choice of terms available will also be limited 

How to get a mortgage with bad credit, but good income

Depending on the type of credit issue you’ve had and how long since it was registered, your chances of getting a mortgage with bad credit should fare better if you have a good income. It’s worth speaking with a mortgage broker to look at the strength of your application overall. 

If you have a high level of disposable income, a solid employment record, and a healthy deposit, this will all help your case as will taking steps to improve your credit score and keeping a close eye on your finances.  

Can you remortgage with bad credit?

Yes, remortgaging is also possible. It’s essentially the same principle as taking out a new mortgage and will depend on the credit issue you’ve incurred and when it happened. The slight difference with remortgaging - which could make it a little easier to get approved - is that you may already have a large amount of equity in your property to use as security. 

If the credit issue you’ve had doesn’t relate to your mortgage but is still outstanding, there’s also the possibility of using the equity in your home to consolidate these debts into one mortgage repayment. 

Are mortgages for bad credit available to first-time buyers?

Yes, they are. If you’re a first-time buyer with a poor credit history, this can feel like quite a daunting combination. But specialist mortgage lenders will adopt the same process whether this is your first or next move. 

The same advice and guidance on how to get a mortgage with bad credit will still apply: check your credit report, take steps to improve your credit score, save as much as you can for a mortgage deposit and, perhaps most importantly if this is your first time, seek the advice of an expert.