Mortgages for Bad Credit
If bad credit is making you worry about buying a home, it can help to know you still have options. Many people with a poor credit history are still able to get a mortgage, depending on the type of credit issue, how long ago it occurred, and how their finances look today.
At Jones & Young, we take the time to understand your situation and explain what lenders are likely to consider, before discussing the next steps.
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Can you get a mortgage with bad credit?
Yes, it is still possible to get a mortgage with bad credit, although the options can be more limited. Lenders will look at how youโve managed credit in the past, how recent any issues are, and whether your current finances support the mortgage you are applying for. They need to understand your past payments and how you manage credit.
This can apply whether you are a first time buyer or moving home, as lenders will still assess your credit history and current affordability.
Some lenders accept applicants with adverse credit or a low credit score, especially where missed payments are in the past and finances are now stable. At Jones & Young, we have experienced mortgage brokers who can help match you with lenders whose criteria better suit your circumstances and improve your chances of getting a mortgage.
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We help you explore options across mainstream and specialist lenders, focusing on those whose criteria match your credit history.
What documents do I need to apply for a mortgage with bad credit?
When applying for a mortgage with bad credit, most lenders will ask for documents to review your finances, income, and credit record. These may include:
- Your last three months of payslips, or if self employed, one to two years of accounts or tax returns
- Bank statements from the past three months, showing income, regular payments, and any other debts
- Your most recent P60, confirming income and tax paid
- Photo ID, usually a passport, to support your mortgage application
- Proof of address, such as utility bills, council tax statements, or driving license
Having this information ready can help lenders assess your credit file, existing debts, and ability to afford mortgage payments. In some cases, you may be asked for extra details when applying for a mortgage with adverse credit.
Requirements can vary for applicants using business income, including those applying for contractor mortgages or limited company director mortgages.
How to get a mortgage with bad credit
Even with bad credit, there are practical steps you can take to improve your chance of getting a mortgage.
Tips
Description
Review your finances
Check income, outgoings, and existing debts to show you can manage repayments
Check your credit record
Look at your credit file to see what lenders see and spot any issues
Improve your credit score
Making regular payments on time can help raise your score over time
Save for a bigger deposit
A bigger deposit can reduce risk and improve acceptance with some lenders
Use family support
A gifted deposit may help if you are struggling to save
Apply with someone else
A joint mortgage can improve your chance to borrow if affordability allows
Speak to mortgage brokers
Brokers can guide your mortgage application and approach suitable lenders
What issues can impact my credit?
Several factors can affect your credit history and reduce your chances when applying for a mortgage with bad credit.
Late or missed payments
Late payments or missed repayments on loans, credit cards, or other credit agreements can lower your credit score and concern mortgage lenders.
Mortgage arrears
Falling behind on mortgage payments shows difficulty keeping up with repayments, which may affect how lenders view your application.
Previous repossessions
If a property has been repossessed due to missed payments in the past, many lenders may be less willing to lend again.
Bankruptcy
Bankruptcy stays on your credit file for up to six years and can limit your mortgage options during that time.
County court judgements (CCJs)
A county court judgement linked to unpaid debt can affect your credit rating, especially if it is recent or unpaid.
Debt management plans or Individual Voluntary Arrangements (IVAs)
Being on a debt management plan or IVA shows past financial difficulties and may impact lenderโs criteria.
These issues do not always mean you cannot get a mortgage. Over time, showing regular payments and reducing debt can help improve how lenders assess your circumstances.
Will a mortgage lender check my credit history?
Yes, most lenders will check your credit history when you apply for a mortgage. This helps the mortgage lender assess how youโve handled credit in the past and whether you can afford the repayments going forward.
They will usually review your credit report, credit score, and credit file as part of the mortgage application process.
How far back do mortgage lenders look at credit history?
Most lenders look back at your credit history for around six years. This includes past payments, missed repayments, and any adverse credit recorded during that time.
Submitting multiple mortgage applications can affect your credit rating, so speaking with mortgage brokers first can help you approach lenders whose criteria better match your circumstances.
What can mortgage lenders see on my credit report?
When you apply for a mortgage, lenders can view detailed information from your credit report, including:
Debt and existing credit
How much credit you use across loans, credit cards, and other borrowing
Payment history
Whether payments have been made on time, as late payments can lower your credit score
Adverse credit
Records such as a county court judgement, bankruptcy, IVAs, or other adverse credit marks
Credit applications
A high number of recent applications can raise concerns for lenders
Lenders use this information to decide whether you can manage mortgage payments alongside other debts.
Does having bad credit make your mortgage more expensive?
Yes, bad credit can lead to higher interest rates or fees. Lenders may see borrowers with poor credit as a higher risk, which can affect the deal offered.
Some specialist lenders provide bad credit mortgages, though these often come with higher interest rates compared to standard mortgage products.
Whatโs the lowest credit score for a mortgage?
There is no single credit score that guarantees approval, as each lender has different lending criteria. That said, getting a mortgage becomes harder with a very low credit score.
Many lenders prefer a score above the lower range, although adverse credit mortgages may still be available. Improving your credit score, reducing debt, and saving a larger deposit can help expand your options when you apply for a mortgage.
What are the benefits of working with a bad credit mortgage broker?
At Jones & Young, our mortgage brokers can help if you have bad credit or a low credit score. A broker can review your credit history, guide your mortgage application, and approach lenders more likely to accept your circumstances.
This can save time, reduce rejected applications, and improve your chance of getting a mortgage that suits your needs.
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Read What Our Recent Clients Say About Our Bad Credit Mortgage Broker Service
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Bad Credit Mortgages FAQs:
Weโve done our best to try and answer some of the most frequently asked questions about bad credit mortgages below.
Can I still get a mortgage if I have bad credit?
Yes, mortgages for bad credit are available through different lenders who look beyond a perfect credit history. Approval depends on your credit score, recent payments, income, and overall circumstances.
Will I need to pay higher interest rates with bad credit?
In many cases, borrowers with bad credit may pay higher interest rates at first. Some people later move to lower interest rates in the future once they show they can repay on time and improve their credit score.
Can I use a mortgage calculator if I have bad credit?
Here at Jones and Young we have a mortgage calculator which can give a general idea of costs, but it will not reflect all options for bad credit cases. Mortgage brokers can give a more accurate view of monthly payments based on lenders willing to consider your situation.
How much could my monthly payments be?
Monthly payments depend on the loan amount, interest rate, and mortgage term. A larger deposit or lower debt level can help reduce payments, even when applying with bad credit.
Do different lenders assess bad credit in the same way?
No, each lender uses its own lending criteria. Some focus more on recent payments, while others look closely at how long ago credit issues occurred.
Can I get a mortgage with bad credit if I am moving house?
Yes, moving house with bad credit may still be possible. Lenders will review your current mortgage payments, remaining debt, and whether your finances support a new loan. Lenders will also consider additional costs such as stamp duty when assessing overall affordability.
Will I always be stuck with a bad credit mortgage?
Not necessarily. Many borrowers use a bad credit mortgage as a short term idea, then move to a new deal in the future once they improve their credit and show they can repay consistently.
How do I know Jones & Young is regulated?
At Jones & Young, we are authorised and regulated by the Financial Conduct Authority and can explain how advice is given and which lenders we work with.
