Can you get a mortgage with bad credit in the UK

This article is for general information only. It is not financial advice and does not recommend a specific lender or product.

Getting a mortgage with bad credit is harder than with a clean credit record. Some specialist lenders will consider applications with adverse credit markers, but the rates are higher, the deposits larger, and the process more complex. Understanding what lenders look at, and what weakens an application, is a useful starting point before you approach anyone.

This article is information only. It does not constitute financial advice and does not account for your personal circumstances. A whole-of-market mortgage broker regulated by the Financial Conduct Authority (FCA) can help you assess your individual position.

What is the short answer?

Yes, mortgages are available to people with adverse credit histories in the UK. However, they come from specialist lenders rather than mainstream high-street banks, and the terms are less favourable. Approval is not a given, each lender applies its own criteria, and decisions depend on the full picture of your credit file, income, deposit, and the severity and age of any adverse markers. There is no lending decision that is certain before a lender has carried out its checks.

What counts as bad credit for mortgage purposes?

Lenders assess your credit file and look for markers that suggest you have struggled to repay debt in the past. Common adverse markers include:

Missed or late payments on loans, credit cards, or utility bills
Defaults, where a lender closes an account and formally records that repayments were not maintained
County Court Judgements (CCJs), court orders requiring you to repay a debt
Individual Voluntary Arrangements (IVAs), formal agreements to repay a proportion of debt
Bankruptcy, a more serious marker that typically remains on your file for six years
Debt Management Plans (DMPs), repayment arrangements that may appear on your file

The severity matters. A single missed payment two years ago is treated very differently from a recent bankruptcy or unsatisfied CCJ. Lenders also consider whether adverse markers have been satisfied (repaid) or remain outstanding.

Be careful about assuming that buy-now-pay-later arrears carry the same weight as mainstream credit defaults. The rules around how BNPL arrears are reported to credit reference agencies are still developing. Check with each credit reference agency how any BNPL accounts appear on your file before applying.

What do specialist mortgage lenders look at?

Specialist lenders and some smaller building societies operate in the adverse-credit mortgage market. They assess applications more individually than mainstream lenders do, but they still apply strict criteria under FCA rules, including affordability checks and requirements under the Consumer Duty to act in customers' best interests.

Key factors they consider:

Age of the adverse marker. Older adverse markers are treated less harshly. A default from five years ago carries less weight than one from six months ago. Many markers fall off your credit file after six years.

Severity of the marker. Missed payments sit at the lower end of the scale. CCJs, IVAs, and bankruptcy are more serious and significantly narrow the pool of willing lenders.

Whether debts have been satisfied. A default that has been repaid in full is viewed more favourably than one that remains outstanding.

Deposit size. A larger deposit reduces the lender's risk. With adverse credit, a deposit of 15% to 25% is commonly required. Some lenders require more if the adverse markers are severe or recent.

Income and affordability. All regulated mortgage lenders carry out an affordability assessment. You will need to show that the monthly repayments are affordable based on your income, committed expenditure, and any dependants.

Your credit since the adverse event. Evidence of responsible credit use after the adverse marker, paying bills on time, keeping credit utilisation low, can support an application.

What are the costs of a bad-credit mortgage?

This is where the picture becomes more difficult, and it is worth being clear about the costs before proceeding.

Higher interest rates. Specialist adverse-credit lenders charge higher rates than mainstream lenders. This reflects the additional risk they perceive. A higher rate applied across a 25-year mortgage term means paying considerably more in total compared with a standard mortgage. Even a difference of one or two percentage points adds substantially to the overall cost.

Larger deposit required. Because you are putting more money down, the upfront cost is higher. This may mean waiting longer to accumulate the required deposit.

Broker fees. A specialist mortgage broker is often the most practical route to adverse-credit lenders, as many do not deal directly with the public. Brokers charge fees, either on application, on completion, or both. Ask for a clear fee schedule before you agree to proceed. Fees are payable regardless of the outcome in some cases.

Arrangement and product fees. Mortgage products themselves often carry arrangement fees. Check whether these are added to the loan or paid upfront, as adding fees to the mortgage increases the total interest you pay.

What can go wrong?

The risks in this area are significant and are worth understanding before making any application.

A declined application leaves a hard search on your credit file. This is visible to other lenders for up to 12 months and may make subsequent applications harder. Applying to multiple lenders without proper assessment is one of the most common ways people make their credit position worse.

Higher rates mean higher total repayment cost. The lower the credit quality perceived by a lender, the higher the rate. It is worth calculating the total amount repayable over the full term, not just the monthly payment, before committing.

Repossession risk. A mortgage is a secured loan. If you miss payments, the lender has the legal right to repossess your home. If you are already under financial pressure, taking on a large secured commitment may increase that risk rather than reduce it.

Brokers are not all equal. Some firms operate as introducers to a limited panel of lenders rather than offering whole-of-market access. Check that any broker you use is authorised and regulated by the FCA and that they search the market, not just their own panel.

Rates may increase. If your adverse-credit mortgage carries a variable or tracker rate, your monthly payments may rise if interest rates increase. A fixed-rate product provides certainty for the fixed term, but the rate at renewal may be different.

If you are already struggling with existing debt or missing payments, taking on a mortgage is likely to increase financial pressure rather than resolve it. Free debt advice may be a better first step in those circumstances.

What steps can improve your position?

There is no path that removes adverse credit markers from your file before six years have passed. However, some steps can strengthen your overall application:

Check your credit file before applying. All three main credit reference agencies, Experian, Equifax, and TransUnion, hold data about you, and they may hold different information. Checking all three for errors is a useful first step. Correcting factual errors on your file is possible through each agency's dispute process.

Build a track record of on-time payments. Each month that passes with all current commitments paid on time adds to a more positive recent picture, even if older adverse markers remain.

Reduce outstanding debt where possible. High credit utilisation (using a large proportion of available credit limits) can negatively affect how lenders view your application.

Save a larger deposit. A deposit above the minimum required for adverse-credit products may open access to better rates or a wider range of lenders.

Consider timing. If an adverse marker is relatively recent, waiting until it is older, or until it drops off your file after six years, may open more options. A mortgage broker can help you assess whether the timing is right for your circumstances.

Use a whole-of-market broker. A broker with experience in adverse-credit cases knows which lenders are likely to consider your profile, and can carry out a soft search before any formal application. MoneyHelper's website includes guidance on finding a mortgage broker and understanding what to look for.

Where to get free help and advice

If you are under financial pressure, struggling with existing debts, or concerned about whether you can afford the commitments you already have, free, impartial advice is available.

StepChange Debt Charity: 0800 138 1111 (freephone, weekdays)

National Debtline: 0808 808 4000 (freephone, weekdays and Saturdays)

MoneyHelper: 0800 138 7777 (freephone), also provides a mortgage affordability guide and a directory of regulated mortgage advisers

These organisations provide free, confidential advice and will not pressure you into any product or arrangement.

Frequently asked questions

Can I get a mortgage with a default on my credit file?

Some specialist lenders will consider applications where defaults exist. The age of the default matters: older defaults (typically three or more years) are viewed less severely. The amount of the default and whether it has been satisfied also affect how lenders assess the application.

How much deposit do I need with bad credit?

Most high-street lenders require at least 10% deposit. With adverse credit markers, specialist lenders often require 15% to 25% or more, depending on the severity of the credit issues. A larger deposit reduces the lender's risk and may improve the rate offered.

Will applying for a mortgage affect my credit file?

A full mortgage application involves a hard credit search, which is recorded on your credit file and visible to other lenders for up to 12 months. Using a broker who carries out a soft search first can help you understand which lenders are likely to consider your application before a formal search is made.

Does the type of bad credit matter?

Yes. Lenders treat different adverse markers differently. A single missed payment several years ago is viewed differently from a CCJ, bankruptcy, or IVA. More severe markers generally mean fewer lenders will consider the application.

Should I wait before applying for a mortgage?

Waiting can improve your position. Credit markers reduce in weight over time and drop off your file after six years. Using that time to build a larger deposit, reduce existing debt, and keep all current payments up to date may widen the range of lenders willing to consider your application.

Do I need a specialist broker for a bad-credit mortgage?

A whole-of-market mortgage broker with experience in adverse-credit cases has access to lenders who do not deal directly with the public. This can be a useful first step. Check any fees upfront, some brokers charge a fee on completion, others charge on application.