Can I get a mortgage with bad credit?

Yes, you can. While it can be more difficult to secure a mortgage with a bad credit history, it’s not impossible. There are steps you can take that could improve your chances of being accepted for a bad credit mortgage. We have also compiled a list of things that can stop you getting a mortgage.

Lenders who can offer a mortgage to a borrower with bad credit are often specialist niche-market companies. They will outline the advantages and disadvantages of different types of adverse credit events.

In some cases, they may also require a larger deposit, typically around 15%, as well as charging slightly higher interest rates. This is because they see you as higher risk. In turn, they need to offset this risk in case you were unable to make mortgage payments.

What is a bad credit mortgage & are they different from other mortgages?

A bad credit mortgage, sometimes known as a ‘poor credit’ or ‘adverse credit’ mortgage, is the term used to describe a mortgage arranged with a specialist lender for a borrower who has experienced financial difficulties in the past.

Usually, lenders offering bad credit mortgages will provide them at a slightly higher interest rate compared to mortgages offered by typical lenders. They may also require a slightly bigger deposit or a larger amount of equity.

How much will a bad credit mortgage cost?

It’s impossible to give an exact figure for how much a bad credit mortgage will cost.

However, the best way to lower the cost of the actual mortgage is by providing a high deposit. If you can provide at least 25% of the property’s value, then you may be able to access deals closer to standard interest rates.

There will also be other costs like ones to initially set up the mortgage and ensure everything is in place correctly. These costs include, but are not limited to:

• Arrangement fees: The cost a lender charges to set up a mortgage product, usually a percentage of the loan amount.
• Surveyor: A survey ensures the property is in suitable condition. Costs vary based on property value, age, and survey type.
• Valuation: A lender requires a valuation of the property. Some may include this in fees, others may not.
• Solicitor or legal fees: Required for the legal aspects of the purchase.
• Mortgage broker: Especially useful for those with bad credit; brokers may charge a flat fee or a percentage of the loan.

How do you know if you have bad credit?

Some people find out when an application is declined, but many are already aware of bad credit events. This should inform your early research.

Whatever your situation, it’s strongly recommended to get a copy of your credit report. This shows what’s on your file and helps guide your mortgage options.

How to check your credit score

You can get your credit report from the three main UK credit reference agencies: Experian, Equifax, and TransUnion. Each agency uses a different scoring system, so it’s best to get all three. Checkmyfile combines data from all of them into one report.

How to get your credit report

Reports are usually available online or by post. If security checks are needed, there may be a delay. See our Checkmyfile page for a step-by-step guide.

How to improve your credit for a mortgage

Things to do now

• Register on the electoral roll if you’re not already on it.
• Request copies of your credit report from the three main UK agencies.
• Close any unused accounts, such as store or credit cards.

Next steps

• Check that all credit report information is accurate. Dispute errors if needed.
• Make a list of income and outgoings to create and stick to a budget.
• Start settling or consolidating any existing debts.

Long term actions

If budgeting is difficult, reassess your expenses. Open a savings account and contribute monthly—even small amounts help. Use windfalls (like council tax-free months) to boost savings.

Read our in-depth guide for more help improving your credit.

What credit issues will mortgage lenders accept?

There are a variety of credit issues that lenders will consider during your application. These vary depending on the lender and the severity of the credit events.

Who are the best bad credit mortgage lenders?

Typically, mortgage lenders for bad credit are specialist niche-market companies. This means their product options will be limited, but their criteria will be more flexible when compared to mainstream lenders. The good news is that every year, there are more and more of these specialists appearing.

So, who are the best adverse credit mortgage lenders? We don’t recommend a ‘best’ lender, as each application is assessed on a case-by-case basis. Essentially you need to find one who will offer you a mortgage based on your own circumstances. Using an experienced broker can help you do so.

Bad credit mortgage brokers

A bad credit mortgage broker is an advisor who specialises in this specific market. They have experience in the market and can recognise if a bad credit mortgage is genuinely required.

As specialist brokers, we understand the nature of these mortgages and the individuals trying to apply. We have access to specialist lenders that aren’t available on the high street or online. This increases your options compared to you applying for a mortgage with a poor credit score on your own.