Can I Get a Mortgage With Bad Credit? What You Need to Know

Having a poor credit history doesn't necessarily mean you can't get a mortgage. While it can affect the lenders and mortgage products available to you, every situation is different.

If you've had missed payments, defaults, a County Court Judgement (CCJ) or other credit problems, understanding how lenders may view your circumstances is an important first step.

What do mortgage lenders consider?

When you apply for a mortgage, lenders don't simply look at one credit score.

They will usually assess your overall financial circumstances, including your income, expenditure, existing borrowing, deposit and credit history.

If there have been credit problems, factors such as the type of issue, how much was involved, when it happened and whether it has since been resolved may all be relevant.

Different lenders also have different criteria. This means an application that doesn't fit one lender's requirements may be viewed differently elsewhere.

What types of credit problems can affect a mortgage application?

Examples can include:

• Missed or late payments

• Defaults

• County Court Judgments (CCJs)

• Debt management plans

• Individual Voluntary Arrangements (IVAs)

• Previous bankruptcy

• Mortgage or secured loan arrears

The presence of one of these doesn't automatically tell you whether you'll be able to obtain a mortgage. The details surrounding it matter.

Should I check my credit report before applying?

Yes. Reviewing your credit reports before making a mortgage application can be worthwhile.

Check that your personal details are correct and look for anything you weren't expecting.

Will I need a bigger deposit?

Potentially.

Your credit history can influence the lenders and products available, and some applicants may need a larger deposit depending on their circumstances.

However, there isn't a universal deposit requirement for everyone who has experienced credit problems.

Can a mortgage broker help if I have bad credit?

This is an area where getting advice can be particularly useful.

Mortgage lenders have different approaches to applicants with previous credit issues. Rather than approaching lenders at random, an adviser can review your circumstances and identify options that may be appropriate.

If you've experienced financial difficulties in the past, being open about them with your adviser can help. The more accurately we understand your circumstances, the better we can assess the options potentially available to you.

Having bad credit doesn't necessarily mean home ownership is out of reach. The important thing is to understand your position before making applications.

Speak to a mortgage adviser

If you're concerned that your credit history could affect your mortgage application, speak to us. We can review your circumstances and help you understand the mortgage options that may be available.