Mortgages for People with Poor Credit in the UK (2025 Guide)
Can You Get a Mortgage with Bad Credit? Yes it’s possible. Having poor credit doesn’t automatically mean a mortgage rejection. Many UK lenders now offer “adverse credit” mortgages for borrowers with missed payments, defaults, or even CCJs. The key is understanding how lenders view your situation and preparing the right evidence to show you can repay reliably. What Is a Bad Credit Mortgage? A bad credit mortgage is designed for people with a less-than-perfect credit history. You might have been affected by: Missed or late payments Defaults or CCJs IVA or bankruptcy (historic) High credit utilisation or payday loans These mortgages work much like normal ones, but the lender may: Charge a slightly higher interest rate Ask for a larger deposit (10–25%) Require strong proof of income and stability How Lenders Assess Your Credit Lenders don’t just look at your credit score number — they assess the story behind it: How recent the issues are Whether they’ve been settled The cause (one-off life event vs ongoing pattern) Your current financial behaviour If your problems are over three years old and settled, many lenders will still consider you. Steps to Improve Your Chances Check your credit report – from Experian, Equifax, or TransUnion Correct any errors – even old addresses or defaults marked incorrectly Register on the electoral roll Pay all current credit on time Avoid multiple applications in a short period Save for a higher deposit – this offsets risk for lenders Work with a mortgage broker who knows which lenders accept adverse credit Top 10 FAQs on Bad Credit Mortgages (UK) Can I get a mortgage with missed payments or defaults? Yes. Lenders will want to see that the issues are in the past and that you’re now managing money well. Older defaults (over 2–3 years) carry less weight than recent ones. What if I’ve had a CCJ or IVA? Specialist lenders often accept settled CCJs or completed IVAs — usually after 12–36 months, depending on the case. Can I get a mortgage after bankruptcy? You’ll generally need to wait six years after discharge, and rebuild good credit during that time. How much deposit do I need? Expect to put down 10–25%, depending on how severe and recent your credit issues are. Are interest rates higher? Yes, usually a little but as your credit improves, you can remortgage later to a better deal. Do I need a guarantor? Not always, but some borrowers strengthen applications with a family assist or guarantor mortgage. Which lenders are best for bad credit? Specialist lenders (not high-street banks) often help in these cases a broker like ProMoney can match you to the right one. Can I use Help to Buy or Shared Ownership? Yes some government-backed schemes still accept mild credit issues if affordability is proven. Will applying for multiple mortgages hurt my score? Yes each application leaves a mark. Always use a broker to make soft-check enquiries first. How soon can I remortgage to a better rate? Usually after 12–24 months of consistent repayments once your credit file shows improvement. Pro Tip: Even if you’ve had credit problems, your income, stability, and deposit matter more than the past. A broker who specialises in adverse credit cases can make all the difference. Final Thoughts Don’t let a low credit score stop you from owning your home. With the right preparation and expert advice, you can still get on or stay on the property ladder. If you’ve been refused elsewhere or have a complex credit history, contact ProMoney Mortgage Services Ltd, authorised by St. James’s Place, for personal, understanding, and confidential guidance.