Can I Get a Mortgage with Bad Credit? UK Guide.

Not all adverse credit is equal. Lenders categorise credit problems by severity, recency, and value. A late payment on a mobile phone contract three years ago carries far less weight than a CCJ registered last month. Understanding where your issues sit on this spectrum helps you target the right lenders and set realistic expectations.

The most common adverse credit markers that affect mortgage applications in the UK include missed or late payments, defaults, County Court Judgments (CCJs), Individual Voluntary Arrangements (IVAs), Debt Management Plans (DMPs), and bankruptcy. Our guide to bad credit mortgages explains how each type affects your options.

How long credit issues stay on your file

High-street banks use automated credit scoring systems that typically reject any application with adverse markers outright. Specialist lenders take a different approach. They employ manual underwriting, meaning a human underwriter reviews your full application, considers the context around your credit issues, and makes a judgment call.

These lenders want to understand the story behind the numbers. For example, if a default was caused by a period of illness or redundancy and you have since recovered financially, a specialist underwriter may take a sympathetic view. They’ll look at your current income stability, your spending habits over the last 12 months, and whether you’ve maintained clean credit since the adverse event.

High-Street vs Specialist Lenders

One of the most important factors in a bad credit mortgage application is the size of your deposit. A larger deposit reduces the lender’s risk and can offset concerns about your credit history. While a borrower with a clean credit file might secure a mortgage at 95% LTV (a 5% deposit), most specialist lenders will want to see at least 15–25% deposit from applicants with adverse credit.

The exact deposit required depends on the severity and recency of your credit issues. Minor adverse credit such as a couple of missed payments from several years ago might only require a 10–15% deposit. More serious issues like a recent CCJ or an IVA completed within the last two years could push the requirement to 20–25% or higher.

Typical deposit requirements by credit issue

Work out your numbers

• Borrowing Amount CalculatorFree tool

  Enter your income and commitments to see how much you could borrow, even with adverse credit factored in.

• LTV CalculatorFree tool

  Check your loan-to-value ratio based on your deposit and property price — a key metric for specialist lender eligibility.

Even if you plan to use a specialist lender, improving your credit score before applying can open up better rates and more product options. There are practical steps you can take in the months leading up to your mortgage application that can make a measurable difference.

Start by getting copies of your credit reports from all three UK agencies — Experian, Equifax, and TransUnion. Check every entry for accuracy. Errors on credit files are more common than you’d think, and removing an incorrect default or outdated address link could instantly improve your score. Use our borrowing calculator to see how your improved profile might affect what you can borrow.

Credit improvement action plan

1. 01

   Check all three credit reports

   Request your statutory reports from Experian, Equifax, and TransUnion. Look for errors, outdated addresses, or accounts you don’t recognise and dispute them immediately.

2. 02

   Register on the electoral roll

   Being on the electoral roll at your current address is one of the simplest ways to boost your credit score. It confirms your identity and address for lenders.

3. 03

   Pay down existing debts

   Reduce outstanding balances on credit cards and loans. Aim to use less than 30% of your available credit limit. Pay off any unsatisfied CCJs or defaults where possible.

4. 04

   Build a positive payment history

   Use a credit-builder card for small regular purchases and pay the full balance every month. Six to twelve months of clean payments demonstrates responsible credit behaviour.

5. 05

   Avoid new credit applications

   Each hard search leaves a footprint on your file. Multiple applications in a short period can signal financial stress. Avoid applying for new credit in the 3–6 months before your mortgage application.

When your credit history is complex, applying directly to lenders is a high-risk strategy. Each declined application adds a hard search to your credit file, which can further damage your score and reduce your options with other lenders. A mortgage broker who specialises in adverse credit already knows which lenders are most likely to approve your specific combination of credit issues, income type, and deposit size.

Specialist brokers also have access to lenders that don’t deal directly with the public. These exclusive intermediary-only products often have more flexible criteria and better rates than anything you’ll find by searching online yourself. Your broker will package your application to present your circumstances in the best possible light, anticipate likely questions from the underwriter, and provide supporting evidence upfront.

Applying for a mortgage with adverse credit follows the same broad steps as any mortgage application, but there are a few key differences. The process may take longer because specialist lenders rely on manual underwriting rather than instant automated decisions. You’ll also need to provide more documentation to explain your credit history.

Your broker will typically ask you to write a brief letter explaining the circumstances around each credit issue — what happened, why, and what has changed since. This is your opportunity to show the underwriter that the problem was situational rather than a pattern of financial mismanagement.

Documents you’ll likely need

Related guides

• What Is Loan-to-Value (LTV)?

  A larger deposit reduces your LTV and widens your options with specialist lenders.

• How Much Can I Borrow?

  Adverse credit can reduce borrowing limits — find out what lenders are likely to offer.

• Remortgage Guide

  If your credit has improved since you bought, remortgaging could unlock better rates.

• A Guide to Bad Credit Mortgages

  Covers CCJs, defaults, IVAs, bankruptcy — and how specialist lenders assess applications differently.