See how expert advice could secure your mortgage approval even with bad credit Show
Get Started Ask A Question Ask A Question We know everyone's circumstances are different, that's why we work with mortgage brokers who are experts in bad credit mortgages. Ask us a question and we'll get the best expert to help.  No impact on credit score 4.8 out of 5 stars across Trustpilot, Feefo and Google! Our customers love Online Mortgage Advisor
Which lenders have you already tried?Select the tiles below to continue: With the unpredictability of the mortgage market, we want you to have complete confidence in our service, and trust that you're getting the best available rate and the highest chance of mortgage approval. If you're concerned or confused about what to do next, Get In Touch and we'll match you with a Specialist who'll give you the right advice for you and your circumstance. Many people believe that they can’t get a mortgage because they have a history of bad credit. While it’s true that some lenders prefer customers with pristine credit, the idea that having bad credit automatically disqualifies you from mortgage approval is a huge misconception. Watch our video for a quick insight into how bad credit mortgages work, or read our guide below for in-depth information about this topic.
What are you looking for? What is a bad credit mortgage?This is a type of mortgage for borrowers with adverse credit, a poor credit score or low credit rating. These deals are often arranged through specialist lenders who are better equipped to cater for the needs of borrowers who fall into this category and are worried they won’t be able to buy a house as a result. Although the rates and payments for bad credit mortgages can be higher than traditional mortgages, it’s often possible to find a competitive deal if you put down extra deposit, fit the lender’s criteria closely and apply through a specialist broker. Bad credit mortgage lenders often base their decisions on the age, severity and cause of the credit issue in question, as well as how likely they are to reoccur.
Get Started with a BrokerMaximise your chance of approval with specialist advice from an expert in Bad Credit Mortgages Get Started Ask Us A Question Ask Us A Question We know everyone's circumstances are different, that's why we work with mortgage brokers who are experts in bad credit mortgages. Ask us a question and we'll get the best expert to help. Mortgage Lender #13.05% 3 year discounted Initial rate 4.9% APRC Overall cost for comparison Mortgage Lender #23.39% lifetime discounted Initial rate 3.5% APRC Overall cost for comparison Mortgage Lender #33.05% 3 year discounted Initial rate 4.9% APRC Overall cost for comparison Mortgage Lender #43.64% 5 year fixed Initial rate 4.2% APRC Overall cost for comparison Mortgage Lender #53.99% 2 year variable Initial rate 5.50% APRC Overall cost for comparison Mortgage Lender #65.79% 2 year fixed Initial rate 4.9% APRC Overall cost for comparison Find out which lenders are most likely to approve your mortgage How to get a mortgage with bad creditIf you’re looking for a mortgage with bad credit, here are the steps to take to make sure your application gets off to the best possible start… 1. Get your credit reports Downloading your credit reports should be your first port of call. They’ll show your past loans, credit cards, overdrafts and even some utility bills. Remember, your files can differ in terms of what they include from one agency to the next, so it may be possible to find a favourable deal even if one or more reports issues. By obtaining your files in advance, you can also make sure they’re up-to-date and challenge any potential mistakes. 2. Raise as much deposit as possible and carry out credit repair Next, you should optimise your credit file in preparation for your application, to minimise any risk your adverse might create. It may also be a good idea to raise additional deposit if possible at this stage, because putting down extra can also offset some of the risk involved in the agreement. 3. Speak to a bad credit mortgage broker The best way for someone with a poor credit history to get a loan is through a broker who specialises in bad credit mortgages. They have the knowledge, experience and lender contacts to significantly boost your chances of mortgage approval. We offer a free broker matching service that will quickly assess your needs, circumstances and the type of bad credit you have to pair you up with the advisor who’s best placed to get you a great mortgage deal. This will be somebody with a strong track record of helping customers exactly like you every day. Make an enquiry to get started with a specialist bad credit mortgage broker today. We're so confident in our service, we guarantee it. We know it's important for you to have complete confidence in our service, and trust that you're getting the best chance of mortgage approval at the best available rate. We guarantee to get your mortgage approved where others can't - or we'll give you £100*
Credit issues we can help you withRepossessions and bankruptcies are considered the most severe type of adverse credit you can have on your file, while things like missed phone bill payments are problems many providers may be willing to overlook. The brokers we work with can help you get approved for a mortgage with the following…
These providers often base their lending decision on the cause and severity of the adverse, the age of the credit issue, and how closely you meet their other eligibility and affordability requirements. For example, if you are trying to get a mortgage with a CCJ, it’s more likely to be approved than a mortgage for an applicant with several credit issues. Eligibility criteriaThere are three main things involved in mortgage eligibility assessments when bad/poor credit is a factor:
Anyone who has experienced bankruptcy is unable to apply for a mortgage until they have been discharged (which usually takes around twelve months). Most firms will insist on a three or four-year period following the bankruptcy discharge, as well as a good credit history during that time before they will consider a loan. Similarly, interest rates for customers who have had a property repossessed within the last three years tend to be very high, but they should steadily decrease with every passing year. The longer the customer manages to maintain financial activity without incident, the lower the risk of lending. Deposit requirementsThe minimum deposit requirement for a residential property in the UK is 5% or 15% for a buy-to-let, but if you have adverse credit, some providers will only offer you a mortgage loan if you put down more deposit, depending on the age and severity of the issue. For example, those with a repossession on their credit file may be able to get a property loan from specialist firms within 1–3 years if they put down a 25% deposit. Those with an individual voluntary arrangement (IVA) will need between 10-25% deposit, depending on how long is left to run on the debt, and those with a bankruptcy will need between 15-25% in the first three years. 5 -10% depositWith the help of a specialist broker who has access to every provider, it may be possible to get an LTV (loan-to-value) between 90 and 95% with minor bad credit (some lenders will allow a mortgage with defaults if the default is for a mobile phone for example), as long as you meet the provider’s other eligibility requirements. If you’re looking for a bad credit mortgage with 90% LTV or higher, you might struggle to get approved with severe adverse, such as bankruptcy or repossession, history. These issues usually call for a larger deposit amount to offset the risk, especially if they’re less than three years old – but that’s not to say it’s impossible. 50% depositIt may be possible to find a provider willing to offer you a 50% loan-to-value with bad credit, as a deposit this substantial will offset the risk involved in the deal. You will still need to pass all of the standard eligibility and affordability checks, but a deposit of this size will certainly help your cause. 100% mortgage / no depositThis will prove difficult as 100% mortgages are not typically offered to customers with bad credit, or anyone else, for that matter. One of the only ways to get a residential loan with no deposit whatsoever is by having a family member or close friend act as a guarantor. With a bad credit guarantor mortgage (also known as bad credit family springboard products), the lender will secure the loan against a property your guarantor owns or against their savings, as this security can serve as an alternative to a deposit. Other factorsAlthough a provider will look at your credit history when assessing your application, they might also base their lending decision on the following variables…
Rated Excellent by our customersWhich lenders offer bad credit mortgages?A wide range of lenders will offer bad credit mortgages, from high street banks to specialist mortgage providers, and some of them will even consider high-risk customers with very poor credit. Which ones you can approach and the interest rate you will end up with will likely depend on the age, severity and reason for your credit issues. To give you a snapshot of the type of lenders that offer bad credit mortgages, we’ve put together the live tables below…
The tables above are accurate based on the market conditions in September 2022. Criteria can change at any time, so this information should only be used for example purposes. For up-to-date figures and bespoke advice about which lenders you should consider, make an enquiry and we’ll introduce you to an expert bad credit mortgage broker for free. We're so confident in our service, we guarantee it. We know it's important for you to have complete confidence in our service, and trust that you're getting the best chance of mortgage approval at the best available rate. We guarantee to get your mortgage approved where others can't - or we'll give you £100*
High street lendersHigh street lenders don’t always offer bad credit mortgages, and the ones which do might offer you unfavourable rates. The tables below will give you an idea of how likely you are to get home financing based on the type of credit issues you have and how long you might have to wait before pressing ahead.
Please note that these tables are for example purposes only and were correct at the time of creation (September 2022). Get in touch and an expert will go over any updates with you. If you have any type of bad credit, the independent brokers we work with will search the entire market for the best deal based on your needs and circumstances.
Remortgages and bad creditBad credit remortgages can be harder to arrange, and while you won’t typically be offered the same competitive rates as someone with cleaner credit, this doesn’t mean that you should settle for less. It may be possible to remortgage with a variety of previous bad credit on your credit file, including, mortgage arrears, IVAs, defaults and CCJs. For more information on how to remortgage with bad credit, have a look through our in-depth guide on the subject or make an enquiry to speak with an expert on remortgaging with bad credit. Refinancing to clear off debtsAs mentioned above, bad credit remortgages can be harder to arrange and you may not be offered the same competitive rates as someone with cleaner credit but it may still be possible to remortgage to pay off debts even with bad credit on your file. Get matched with a bad credit mortgage expert todayIf you have bad credit of any kind, getting a mortgage can be more difficult and the consequences of approaching the wrong lender or being declined can be more severe. But the good news is that bad credit doesn’t mean you can’t get a good deal, and help is out there. The right mortgage broker could help you get onto the property ladder despite your credit issues, and the rates they help you secure might even surprise you. We offer a free broker-matching service that can find the right broker for you by assessing your needs and circumstances and pairing them with an advisor who has the expertise you need. Call 0808 189 2301 or make an enquiry online and we’ll set up a free, no-obligation chat between you and your ideal bad credit mortgage broker today. Get Started with a BrokerMaximise your chance of approval with specialist advice from an expert in Bad Credit Mortgages Get Started Ask Us A Question Ask Us A Question We know everyone's circumstances are different, that's why we work with mortgage brokers who are experts in bad credit mortgages. Ask us a question and we'll get the best expert to help. FAQsCan I get a mortgage in principle with bad credit?Yes, you could potentially obtain a mortgage in principle with bad credit, depending on the age, severity and reason for your credit issues, along with the overall strength of your application. This is by no means guaranteed mortgage approval as your mortgage lender and their underwriting team will still need to carry out further checks before they will progress to full application. Your chances of securing mortgage pre-approval and successfully progressing from there will improve if you have a bad credit broker on your side. Can I get a second mortgage with bad credit?As long as you can pass the affordability checks, your application for a second loan is likely to be approved, even if you have poor credit. The application process will typically be similar to your first, though if you’re still paying off your first one, the main concern will be whether you can afford to meet both monthly payments at the same time. Whether you qualify for one will depend on the severity of your credit problems, how long they’ve been on your file and how closely you meet the criteria. You’ll also need to meet the deposit requirements, and if you have poor credit, you may need to put down a larger deposit. Are there bad credit mortgages for first-time buyers?Yes, though seeking specialist advice is highly advisable because first-time buyers could be considered higher risk to some providers, and your adverse won’t help with that. Not all providers will allow you to use one of the government’s first-time buyer initiatives (such as Help to Buy). However, a more flexible firm might permit it, as long as you meet their other requirements. Another thing to consider is that they tend to come with larger deposit requirements, which some first-time buyers might struggle to meet. The advisors we work with will help you find the best deals for a first-time buyer with your needs, circumstances and credit history. How far back do mortgage lenders look at credit history?Many will typically look at the last six years, as six years is the maximum amount of time most credit issues can remain on your file. Even if you have active adverse within this time frame, it may still be possible to get a loan, depending on the severity of the issue and when it was registered. Can I get a bad credit mortgage if my partner has good credit?Yes, it’s possible to get a bad credit mortgage if your partner has good credit as there are lenders who specialise in joint applications involving only one bad credit applicant. In this scenario, your bad credit will still be factored in when the overall strength of the application is being assessed, and it might mean the deals you qualify for are fewer. That said, mortgage approval and favourable rates could still be possible if you apply through a specialist broker who knows exactly which lenders to approach. Can I get a joint mortgage if my partner has an IVA?Yes. You could still potentially get a joint mortgage if your partner has an IVA. Your partner’s bad credit would be factored in and will impact the overall strength of the application, but there are lenders who are more than happy to consider joint mortgage deals involving one bad credit applicant. Is it harder to get a mortgage with bad credit?Qualifying for a mortgage can be more difficult if you have bad credit as there is more risk to the lender. To offset this risk, many lenders raise their rates and deposit requirements, while some won’t lend at all under these circumstances. There are, however, specialist bad credit mortgage brokers who can make it easier to get approved. Their knowledge, experience and lender contacts can be the difference between a successful outcome and mortgage rejection. Ask a quick question We can help! We know everyone's circumstances are different, that's why we work with mortgage brokers who are experts in bad credit mortgages. Ask us a question and we'll get the best expert to help. Article RevisionsRelated ArticlesAbout the author Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background. Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course! Read more about Pete Pete Mugleston Mortgage Advisor, MD Continue Reading*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs. Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it. Can I get a loan with a 500 credit score?Lenders can consider giving a personal loan to a borrower with a 500 credit score. However, most lenders have preset requirements that help determine who can qualify for a loan. If you have a 500 credit score and need a personal loan, you should identify subprime lenders.
Do pre approvals hurt credit score?Inquiries for pre-approved offers do not affect your credit score unless you follow through and apply for the credit. If you read the fine print on the offer, you'll find it's not really "pre-approved." Anyone who receives an offer still must fill out an application before being granted credit.
Can you get denied if you are preapproved?Yes, it's possible to have your loan application denied after getting preapproved for a mortgage. It doesn't seem fair, but the reason this is possible is because your loan has to go through the underwriting process before it's finalized.
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Can you get preapproved for a mortgage with bad credit
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