Can I Get a Mortgage with Bad Credit? UK Guide
A CCJ, defaults, missed payments or an IVA on your file? You can still get a mortgage. Here is how specialist lenders work and the steps worth taking.
If your credit history has a few blemishes, it is easy to assume a UK mortgage is out of reach. Usually it is not. High-street banks do turn down a lot of applicants who carry adverse credit markers, meaning County Court Judgments (CCJs), defaults, missed payments, Individual Voluntary Arrangements (IVAs) or a bankruptcy that has since been discharged. But there is a whole specialist lending market built for people in exactly this position. Once you know how those lenders weigh up risk and how to put your application together well, the difference between a decline and getting the keys often comes down to how well you prepare.
Adverse credit is a wide term. One missed payment from four years ago sits at the mild end, while an undischarged bankruptcy sits at the serious end, and a lender treats the two very differently. What they look at is the kind of credit problem, the amount of money tied to it, how recently it happened, and whether you have since sorted it out. The older the issue and the smaller the sum, the more doors tend to stay open to you. Many specialist lenders underwrite by hand instead of leaning only on an automated credit score, so a real person reads your circumstances and decides on the full financial picture rather than a number.
Below you will find the main types of adverse credit that affect a mortgage application, how long each one stays on your credit file, what deposit you’re likely to need, and the practical things you can do now to improve your chances. There is also a section on why going through a specialist mortgage broker, rather than applying to lenders yourself, tends to pay off when your credit record is complicated.
Types of credit issues and how lenders view them
Lenders do not treat every credit problem the same way. They sort them by how serious each issue is, how recently it happened, and how much money was involved. A late payment on a phone contract three years ago barely registers next to a CCJ that landed last month. Knowing where your own issues fall on that scale helps you aim at the right lenders and hold realistic expectations about what you will be offered.
The markers that come up most often on UK mortgage applications are missed or late payments, defaults, County Court Judgments (CCJs), Individual Voluntary Arrangements (IVAs), Debt Management Plans (DMPs) and bankruptcy. Each one carries its own rule for how long it shows on your credit report, and each is read differently by a lender.
Lenders do not treat every credit problem the same way. They sort them by how serious each issue is, how recently it happened, and how much money was involved. A late payment on a phone contract three years ago barely registers next to a CCJ that landed last month. Knowing where your own issues fall on that scale helps you aim at the right lenders and hold realistic expectations about what you will be offered.
The markers that come up most often on UK mortgage applications are 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
Satisfied vs unsatisfied
A CCJ or default that you have paid off (a satisfied marker) is treated far more kindly than one still outstanding. So if you are sitting on an unsatisfied CCJ, clearing it before you apply can widen your choice of lenders, even though the marker itself stays on your file for the full six years.
How specialist lenders assess adverse credit
High-street banks run applications through automated credit scoring, and that system tends to reject anything with an adverse marker straight away. Specialist lenders work differently. They use manual underwriting, which means a human underwriter reads your whole application, takes in the context around your credit issues and makes a considered decision rather than a computed one.
What these lenders really want is the story behind the numbers. Say a default came from a spell of illness or a redundancy, and your finances have recovered since; a specialist underwriter can take a sympathetic view of that. They will look at how stable your income is now, how you have handled money over the last 12 months, and whether your credit has stayed clean since the problem.
High-street banks run applications through automated credit scoring, and that system tends to reject anything with an adverse marker straight away. Specialist lenders work differently. They use manual underwriting, which means a human underwriter reads your whole application, takes in the context around your credit issues and makes a considered decision rather than a computed one.
What these lenders really want is the story behind the numbers. Say a default came from a spell of illness or a redundancy, and your finances have recovered since; a specialist underwriter can take a sympathetic view of that. They will look at how stable your income is now, how you have handled money over the last 12 months, and whether your credit has stayed clean since the problem.
High-Street vs Specialist Lenders
| High-Street Banks | Specialist Lenders |
|---|---|
| Automated credit scoring means instant rejection for adverse markers | Manual underwriting by experienced assessors |
| Rigid criteria with no room for context | Consider the full story behind credit issues |
| Limited product range for complex cases | Products designed for CCJs, IVAs, defaults and more |
| No manual underwriting available | Flexible criteria based on recency and severity |
Deposit requirements for bad credit mortgages
The size of your deposit is one of the biggest factors in a bad credit mortgage. A bigger deposit lowers the lender’s risk, and that can balance out any worry about your credit history. Someone with a clean file might buy at 95% LTV, meaning a 5% deposit, but with adverse credit most specialist lenders will look for at least a 15–25% deposit.
Exactly how much you need comes down to how serious and how recent your credit issues are. A couple of missed payments from several years back might only call for a 10–15% deposit. A recent CCJ, or an IVA that finished within the last two years, can push that up to 20–25% or more.
The size of your deposit is one of the biggest factors in a bad credit mortgage. A bigger deposit lowers the lender’s risk, and that can balance out any worry about your credit history. Someone with a clean file might buy at 95% LTV, meaning a 5% deposit, but with adverse credit most specialist lenders will look for at least a 15–25% deposit.
Exactly how much you need comes down to how serious and how recent your credit issues are. A couple of missed payments from several years back might only call for a 10–15% deposit. A recent CCJ or an IVA that finished within the last two years can push that up to 20–25% or more.
Typical deposit requirements by credit issue
Work out your numbers
Steps to improve your credit score before applying
Even if a specialist lender is your plan, lifting your credit score before you apply can open up sharper rates and a wider choice of products. In the months before a mortgage application there are a handful of practical moves that make a real, measurable difference.
Start by pulling your credit reports from all three UK agencies, Experian, Equifax and TransUnion. Go through every entry and check it is right. Mistakes on credit files turn up more often than people expect, and getting an incorrect default or an old address link removed can lift your score straight away.
Even if a specialist lender is your plan, improving your credit score before you apply can open up sharper rates and a wider choice of products. In the months before a mortgage application there are a handful of practical moves that make a real, measurable difference.
Start by pulling your credit reports from all three UK agencies, Experian, Equifax and TransUnion. Go through every entry and check it is right. Mistakes on credit files turn up more often than people expect, and getting an incorrect default or an old address link removed can lift your score straight away. Use our borrowing calculator to see how a stronger profile might change what you can borrow.
Credit improvement action plan
- 01
Check all three credit reports
Ask for your statutory reports from Experian, Equifax and TransUnion. Hunt for errors, out-of-date addresses or any account you do not recognise, and dispute anything wrong as soon as you spot it.
- 02
Register on the electoral roll
Getting on the electoral roll at your current address is one of the easiest wins for your score. It confirms to a lender who you are and where you live.
- 03
Pay down existing debts
Bring down what you owe on credit cards and loans. A good target is to use under 30% of the credit limit available to you. Where you can, clear any unsatisfied CCJs or defaults too.
- 04
Build a positive payment history
Put small, regular purchases on a credit-builder card and pay the balance off in full each month. Six to twelve months of clean, on-time payments shows a lender you handle credit responsibly.
- 05
Avoid new credit applications
Every hard search leaves a footprint on your file, and several applications close together can look like financial stress. Try not to apply for any new credit in the 3–6 months before your mortgage application.
Why a specialist broker makes all the difference
When your credit history is complicated, applying to lenders yourself is a gamble. Every decline adds a hard search to your file, which chips away at your score further and narrows your options with the next lender. A mortgage broker who works in adverse credit day to day already knows which lenders are likeliest to say yes to your particular mix of credit issues, income type and deposit.
A specialist broker also reaches lenders who do not deal with the public at all. These intermediary-only products often come with more flexible criteria and better rates than anything you could dig up online on your own. Your broker packages the application so your circumstances read in the best possible light, heads off the questions an underwriter is likely to ask, and puts the supporting evidence in front of them from the start.
When your credit history is complicated, applying to lenders yourself is a gamble. Every decline adds a hard search to your file, which chips away at your score further and narrows your options with the next lender. A mortgage broker who works in adverse credit day to day already knows which lenders are likeliest to say yes to your particular mix of credit issues, income type and deposit.
A specialist broker also reaches lenders who do not deal with the public at all. These intermediary-only products often come with more flexible criteria and better rates than anything you could dig up online on your own. Your broker packages the application so your circumstances read in the best possible light, heads off the questions an underwriter is likely to ask, and puts the supporting evidence in front of them from the start.
Every declined application adds a hard search to your credit file. A specialist broker aims at the right lender first time, which protects your score and gives you the best shot at approval.
Protect your credit file
- A broker can match you using soft searches and what they already know about lender criteria, before any hard credit check touches your file.
Access exclusive products
- A lot of specialist lenders only take applications through a broker, so you cannot reach their products on your own.
Expert application packaging
- Your broker builds a full case file that sets out the context behind your credit issues, which makes the underwriter’s decision easier.
What to expect from the application process
A mortgage application with adverse credit runs through the same broad stages as any other, with a few differences worth knowing. It can take a little longer, because specialist lenders underwrite by hand instead of returning an instant automated decision. You will also be asked for more paperwork to explain your credit history.
Your broker will usually ask you to write a short letter covering each credit issue: what happened, why it happened, and what has changed since. That letter is your chance to show the underwriter the problem was a one-off situation rather than a habit of mismanaging money.
A mortgage application with adverse credit runs through the same broad stages as any other, with a few differences worth knowing. It can take a little longer, because specialist lenders underwrite by hand instead of returning an instant automated decision. You will also be asked for more paperwork to explain your credit history.
Your broker will usually ask you to write a short letter covering each credit issue: what happened, why it happened, and what has changed since. That letter is your chance to show the underwriter the problem was a one-off situation rather than a habit of mismanaging money.
Documents you’ll likely need
Financial documents
- Last 3 months’ bank statements (all accounts)
- Latest 3 months’ payslips or 2–3 years’ SA302s if self-employed
- Proof of deposit (savings statements or gift letter)
Credit evidence
- Credit report from Experian, Equifax, or TransUnion
- Written explanation letter for each adverse credit event
- Proof of satisfaction for any paid CCJs or defaults
Top tip
Get all your documents together before your first broker meeting. Having everything ready from the outset speeds things up and shows a lender you are organised and serious about the application.
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, so find out what lenders are likely to offer.
- Remortgage Guide
If your credit has improved since you bought, remortgaging could get you a better rate.
- A Guide to Bad Credit Mortgages
Covers CCJs, defaults, IVAs and bankruptcy, plus how specialist lenders assess applications differently.
Frequently asked questions
- Regulator
- FCA register
- Updated
- 24 February 2026
More guides
Browse all- Guide6 min read
What Is Loan-to-Value (LTV)? Simple Explanation
Your LTV ratio shapes the mortgage deal you are offered. Here is what it means, how to work yours out, and how to bring it down.
by Ali15 Jun 2025
- Guide7 min read
Mortgage Rates Explained: Fixed, Variable & Tracker UK
Fixed, variable, tracker and SVR are the main UK mortgage rate types. This guide explains how each one works, what moves rates, and how to choose.
by Ersan20 Oct 2025
Bad credit? Let’s find your mortgage
Our specialist advisers work with lenders right across the market, including the ones that accept CCJs, defaults, IVAs and more. You get advice built around your situation and a clear plan to follow.