Many people worry that having a poor credit history means they cannot buy a home. The good news is, you can still get a mortgage with bad credit, but it may be more challenging and usually comes with higher costs.
What Does Bad Credit Mean?
Bad credit generally refers to a low credit score caused by things like:
- Missed or late payments
- High levels of debt
- Defaults or County Court Judgments (CCJs)
- Bankruptcy or Individual Voluntary Arrangements (IVAs)
Lenders use your credit history to decide how risky it is to lend you money.
Can You Still Get a Mortgage with Bad Credit?
Yes, it’s possible. Many specialist lenders offer mortgages designed for people with poor credit. However, there are some important things to know:
- Higher interest rates – Lenders charge more to offset the risk.
- Bigger deposit required – You may need 15–30% of the property’s value as a deposit.
- Stricter checks – Lenders will carefully review your income, debts, and repayment history.
How to Improve Your Chances
If you’re planning to get a mortgage with bad credit, here are some practical steps:
- Save a larger deposit – The more you can put down, the better your chances.
- Check your credit report – Correct any errors and pay off outstanding debts where possible.
- Show stable income – A consistent job history reassures lenders.
- Work with a mortgage broker – Brokers can connect you with lenders who specialise in bad credit mortgages.
Should You Wait Before Applying?
Sometimes it’s worth waiting and improving your credit before applying for a mortgage. Even a small increase in your credit score can unlock better interest rates, saving you thousands over the long term.
👉 Key takeaway: Getting a mortgage with bad credit is possible, but it requires careful planning, a larger deposit, and potentially working with specialist lenders. Improving your credit score beforehand can make the process easier and more affordable.