Can I Get a Mortgage with Bad Credit? An Honest Guide

The honest answer

Yes — in many cases, you can still get a mortgage with bad credit. But the options available to you, the rates you'll pay, and the deposit you'll need will depend on the nature and severity of your credit issues.

This is an area where working with the right specialist broker makes a significant difference. I know which lenders take the most pragmatic view of different types of credit issues, and I can assess your situation honestly before we apply anywhere.

Types of credit issues and their impact

Not all credit issues are equal. Here's how different issues typically affect your mortgage options:

Missed or late payments — the most common and generally the least serious. The impact diminishes over time, and many mainstream lenders will consider applications where the last missed payment was 2–3 years ago.

Defaults — more serious than missed payments, but still manageable. Satisfied defaults (where the debt has been repaid) are viewed more favourably than unsatisfied ones. Specialist lenders will consider defaults registered 2–3 years ago.

County Court Judgements (CCJs) — the impact depends on the value, age, and whether the CCJ is satisfied. Some specialist lenders will consider CCJs over 3 years old; others require them to be satisfied.

Debt Management Plans (DMPs) — active DMPs significantly limit your options, but satisfied DMPs are viewed more favourably. Some specialist lenders will consider applications from people who completed a DMP 1–2 years ago.

IVAs (Individual Voluntary Arrangements) — active IVAs make getting a mortgage very difficult, but once satisfied, options do open up. Most specialist lenders require an IVA to have been satisfied for at least 1–3 years.

Bankruptcy — the most serious credit issue. Most lenders require you to have been discharged for at least 3–6 years, though specialist lenders may consider more recent discharges.

What you can do to improve your position

Check your credit file — get a copy of your credit report from all three main agencies (Experian, Equifax, TransUnion) and check for errors. Incorrect information can be disputed and removed.

Register on the electoral roll — this is one of the simplest ways to improve your credit score and is checked by all lenders.

Build positive credit history — if you have a thin credit file, consider a credit-builder credit card (used responsibly) to demonstrate you can manage credit.

Reduce existing debts — paying down credit cards and loans before applying can improve your credit score and increase what lenders will offer.

Avoid new credit applications — each application leaves a mark on your credit file. Avoid applying for new credit in the 6–12 months before your mortgage application.

The importance of the right broker

Not all brokers have experience with adverse credit mortgages. Applying to the wrong lender can result in a declined application, which further damages your credit score.

I'll assess your full situation before we apply anywhere, identify the lenders most likely to say yes, and present your case in the best possible light.

var(--inspire-text)]">Worried about your credit history? [Check your eligibility — it won't affect your credit score — or book a free call to discuss your situation in confidence.