Bad credit mortgages

Compare bad credit mortgages

Can I get a mortgage with bad credit?

Having a bad credit rating can mean being accepted for a mortgage is difficult, but not impossible. Your mortgage options might be limited, with many of the mainstream mortgage providers rejecting you outright. However, there are specialist lenders who might be able to help. They offer a bad credit mortgage, also known as a subprime mortgage or an adverse credit mortgage.

These specialist bad credit mortgage lenders tend to have stricter criteria. But, if you can meet them, you might be on track to successfully apply for a mortgage:

  • The lender may ask for a larger deposit than a standard mortgage
  • The lender’s interest rates or APRC  may be higher than standard mortgage rates
  • The lender’s LTV may be lower, meaning you might have to provide a bigger deposit compared to a standard mortgage

What is bad credit?

There are no universally accepted criteria for what counts as having bad credit. Lending companies will have differing opinions of what it means. But there are credit problems that can fall into minor and more serious cases.

  • A one-off late credit card payment could be considered a minor credit problem and so shouldn’t affect your chances of getting a mortgage.
  • If you’ve been declared bankrupt or had a county court judgement (CCJ) in the last few years, mortgage lenders are likely to consider that more serious. It could very well affect your chances of applying successfully for a mortgage

Credit problems, little or large, are recorded on your credit history. Lenders can view your credit report to get an idea of how you’ve handled your credit in the past. This gives them a snapshot into your financial history and helps them decide whether they’ll lend to you or not.

How can I improve my chances of being accepted for a bad credit mortgage?

Improve your credit history by borrowing credit responsibly and making your repayments on time, you can begin to repair your credit history. This can even be as simple as spending on a credit card and making sure you clear the balance on time, every month.

Registering to vote at your current address is an easy win for improving your credit score.

Consider old friends’ and your partner’s financial history when you apply for a mortgage. It’s important to consider who you’ve shared financial payments with in the past. This could be an old housemate or partner that you used to share an account with.

Check your credit report with a free credit service to check your credit report. Credit check companies like Experian or Clearscore can give you a general idea of how lenders view your financial identity. They can give you tips on how to rebuild your score too.

Take your time. Depending on the credit problem, some marks on your credit history may disappear over time. This means certain lenders might consider your mortgage application even after you’ve gone through bankruptcy, an Individual Voluntary Arrangement (IVA) or a CCJ. The timescale can vary from lender to lender, so it’s always worth checking with them to get more information.

Appeal to the lender by applying when you’ve got yourself in the best financial position you can be in. A regular, stable income is always a big plus as is a big deposit. If you do have some credit issues from the past, the lender will be able to see you’ve made recent efforts to fix your financial issues.

Gifted money from family for a deposit. Some lenders will accept a deposit if it’s ‘gifted’ from a member of your family. The lender won’t accept a gifted deposit that’s a loan, so you must be under no obligation to pay the money back.

Have a family member become a guarantor. If you find yourself unable to get a mortgage, having a family member as a guarantor could be a great option. A guarantor is someone, such as a family member or parent, who takes on some of the risk of the mortgage. A guarantor will usually have to offer something to the lender to cover the mortgage payments if you start to miss them. Like their home as security against the loan, for example.

Speak to a financial advisor if you have concerns about how your bad credit could affect you getting a mortgage, you might want some advice. So it could be worth speaking to a mortgage or financial advisor. You may have to pay for this service, but they could help you find a good mortgage deal in the future.

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The pros and cons of a bad credit mortgage


  • If you’ve been rejected by the big high street lenders, that doesn’t mean you can’t find a deal. There are specialist lenders you can apply to and help you get a mortgage. Make sure to shop around as best you can to find the right deal for you and your financial situation
  • Being able to get on the property ladder is a big plus. If you’ve found the perfect property and the right mortgage deal, successfully making your repayments every month can help improve your credit history
  • In the right situations, such as when the housing market has slowed down, you may stand a better chance of negotiating a better price for a property you’re looking at


  • Deciding to get a bad credit mortgage now means you have less time to build up your credit score. If you decide to wait and work on improving your credit report, you could find yourself being able to shop around for better deals on a wider choice of mortgages
  • It means having less time to save for a deposit. The larger your deposit, the more likely you are to be accepted by a lender, as it shows you can handle your finances
  • A bad credit mortgage will generally mean being charged higher interest rates, which means you’ll pay more back in the long-run. If you decide to wait and work on your credit score and financial situation, you may find a better deal with better rates

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What do I need before comparing bad credit mortgage deals?

Having the following information ready will help make comparing bad credit mortgages a bit easier:

  • Details of your salary and any other income you earn. If you’re buying with a partner, have details of their salary and any additional income too
  • Details of your regular monthly outgoings
  • How much you’re looking to borrow from the lender and how much your deposit will be
  • If you’re going to live in the property you’re buying or letting it out
  • Whether you’re getting help from a government buying scheme

Who can I speak to for financial support or advice?

If you find yourself in financial difficulty or want to speak to someone about your financial situation, the Money Advice Service can help. It’s a free impartial service set up by the government to provide advice and support online and over the phone.

Visit the Money Advice Service to find out more about the services they offer.

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You should think carefully before securing debt against your home. Your home may be repossessed if you do not keep up repayments on your mortgage. is not a mortgage intermediary and makes introductions to Koodoo to provide an information-only mortgage online comparison service.'s mortgage solution is provided by Koodoo. Koodoo is the trading name of Mortgage Power Limited, which is authorised and regulated by the Financial Conduct Authority (FRN 845978), and is a registered company in England and Wales (company registration number 10978680), with a registered address at Scale Space, 58 Wood Lane, London, W12 7RZ. will receive a share of the commission that Koodoo earns from the provider.