You can still get a mortgage with bad credit, but it’s usually harder, more expensive and takes more preparation than if you have a clean credit history. The good news is that with the right broker and realistic expectations, many people with low credit scores are secure.
IN THIS ARTICLE:
- What Bad Credit Means for Mortgages
- What Mortgage Lenders Check, Why it Matters
- Types of Mortgages you Might Qualify for With Poor Credit
- How to Prepare for a Mortgage With Bad Credit
- Reasons Mortgage Lenders May Decline
- How a Mortgage Broker Helps When You Have Bad Credit
What Bad Credit Really Means for Mortgages
In the UK, bad credit usually means:
- County court judgments (CCJs), defaults or bankruptcies on your file.
- Multiple missed payments or short history of lateness.
- A low credit score from one or more credit reference agencies.
A low credit score mortgage can still be possible if your overall application has strengths. Examples include a stable income, a solid deposit or an experienced mortgage advisor backing you. Mortgage rates and product choice will typically be worse than for those with good credit, but there are routes.
Want personalised help? Speak to our team at Stuart Brown Mortgage Services, we can review your file and tell you which lenders will consider your situation and what you’ll need to do next. Book a free call today.
What Mortgage Lenders Check, Why it Matters
Lenders run a mix of automated credit scoring and manual underwriting. Here are the most common checks and how they affect your application:
| What they check | Why it matters | Impact if poor |
| Credit score & credit file | Predicts future non-payment risk | Big impact, some lenders decline outright if poor |
| Payment history (cards, utilities, loans) | Shows repayment behaviour | Missed payments reduce options |
| Income & employment stability | Can you afford repayments? | Irregular income needs stronger evidence |
| Deposit size / LTV (loan-to-value) | Larger deposits lower lender risk | Higher rates or restricted products if lower deposit |
| Affordability (stress testing) | Can you afford higher rates? | May reduce maximum loan amount |
| Mortgages for low credit score & specialist registers | Some lenders specialise in adverse credit | These may accept you but at higher cost and/or bigger deposit |
Types of Mortgages you Might Qualify for With Poor Credit
- Standard mortgage (with no impact to rate): Possible if credit dips are minor and you have a good deposit.
- Adverse credit mortgages / specialist lenders: Designed for applicants with CCJs, defaults or short-term problems. Rates are higher and product choice narrower.
- Guarantor mortgages: A family member guarantees repayments, useful when your score is low but you have a supporter.
- Large deposit mortgages: If you can put down 30%+, some mainstream lenders will consider riskier applicants at better rates.
- Subprime lenders: Last-resort options, higher fees and stricter terms.
How to Prepare for a Mortgage With Bad Credit
Follow these steps to move from “can I buy a house with bad credit?” to “I’ve got a mortgage offer!”:
- Get your credit reports: Check Experian, Equifax and TransUnion for errors. Dispute mistakes immediately.
- Resolve small defaults and agree payment plans: Lenders like to see remedial action.
- Stabilise your finances: Keep regular employment, avoid applying for new credit and pay essential bills on time for 6-12 months if possible.
- Save a bigger deposit: Every extra percent lowers lender risk and widens product choice.
- Reduce outgoings & improve affordability: Clear small debts and avoid large purchases before applying.
- Collect supporting documents: Payslips, P60s, bank statements, a letter explaining adverse events (illness, redundancy, etc.).
- Use a specialist mortgage broker: Brokers like Stuart Brown Mortgage Services know which lenders accept adverse credit and can present your case better than you alone. Find out how we can help.
- Consider a guarantor or joint application: A partner or family member with better credit may dramatically improve outcomes.
Unsure which of these steps to start with? Send us your details for a free checklist and tailored next steps.
Reasons Mortgage Lenders may Decline
- Too many recent credit applications: Wait 3-6 months, avoid further credit checks.
- Low deposit: Keep saving or look at lower LTV specialist lenders.
- Unexplained credit events: Provide clear evidence that the issue is resolved and explain the circumstances.
- Irregular income: Provide several months of bank statements, contracts or tax returns.
How a Mortgage Broker Helps When You Have Bad Credit
A broker does more than match rates. They:
- Know which lenders accept adverse credit and their individual rules.
- Present a mortgage application in the best possible light (supporting letters, affordability detail).
- Save you time and reduce the chance of damaging multiple credit files with unnecessary searches.
FAQs
Can I apply for a mortgage with bad credit?
Yes, you can apply for a mortgage with bad credit, but apply carefully through a broker to avoid multiple hard searches and to target lenders who will consider your history.
How long after a CCJ or default can I get a mortgage?
It varies, commonly lenders want at least 1-2 years’ evidence of good behaviour, some specialist lenders have different rules. It will depend on the overall picture and size of adverse events.
Will a low credit score always mean a higher interest rate?
Not necessarily, a low credit score can mean less choice which in turn could mean a higher interest rate, but it depends what is causing the low credit score. Improving your deposit and showing stable income can reduce that impact.
Expert Advice and Support at SBMS
Getting a mortgage with bad credit is absolutely possible, but it’s a process. At Stuart Brown Mortgage Services we specialise in turning difficult credit histories into mortgage offers where possible. We’ll be blunt and practical about when it’s better to wait and rebuild.
Ready to see your options? Arrange a free, confidential review, we’ll tell you what lenders will consider your case and the exact steps to improve your chances.
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