Struggling with your credit history? You are not alone and you still have options when it comes to getting a mortgage. Quick guide from Sarah Mascot – book a free mortgage review here directly with Sarah.
If you have had missed payments, defaults, CCJs, an IVA or DMP, or even a discharged bankruptcy, there are specialist lenders who consider applications with adverse credit. The key is understanding what lenders look for and getting mortgage-ready so you can move forward with confidence. With the right preparation and guidance, there are even high street lenders who look favourably on certain scenarios.
Last year it was reported by Financial Reporter, that 8.4m had some sort of adverse credit within 3 years... you are not alone.
What is a bad credit mortgage?
A bad credit (adverse) mortgage isn’t a different product, it is a standard mortgage assessed by lenders with criteria designed to accommodate credit blips and certain every day scenarios that we see. Lenders tend to consider what happened, how long ago it occurred, the amounts involved and whether issues are now settled. Deposit size and affordability still play a big part of course when it comes to getting the home you want.
Can you get a mortgage with bad credit?
Often, yes. Your chances depend on:
- Recency and severity of the credit events (recent vs. historic, small vs. large amounts).
- Evidence of stability since the event (clean payment conduct, steady income).
- Loan-to-value (LTV) — lower LTVs can unlock more lenders and sharper pricing.
- Type of event (missed payments vs. CCJ/IVA/bankruptcy and whether they’re settled/discharged).
Common scenarios we see are:
- Missed or late payments, defaults and arrears.
- CCJs (satisfied or unsatisfied, depending on lender).
- IVAs and DMPs (active or completed).
- Payday loans (recency is important).
- Discharged bankruptcy (cooling-off periods usually apply).
- Complex income (self-employed, contractors, variable pay).
Deposit, rates and costs: what to expect
With adverse credit, lenders commonly ask for a larger deposit and may offer higher rates than high-street averages. Affordability checks can be tighter and a realistic plan compares total cost over the fixed period (not just the headline rate) and balances speed, price and underwriting likelihood.
How to get mortgage-ready (even with bad credit)
- Check all three credit files (Experian, Equifax, TransUnion) and correct errors. Keep copies of any corrections or settlement letters.
Check your multi agency credit file for accuracy and BNPL markers. You can view this with our partner: CheckMyFile : Please note: Check My File offers a FREE 7 Day trial that will enable you to download your current credit report. Please remember to cancel the subscription within 7 days, if you do not wish to continue with this service.
- Stabilise your conduct: pay on time, avoid new hard searches, keep revolving balances sensible.
- Tidy existing debts: reduce balances or agree structured plans, understanding how different lenders view DMPs and settlements.
- Increase your deposit if possible — lower LTV usually widens choice and improves pricing.
- Evidence your income clearly (SA302s/tax overviews if self-employed; payslips/P60 if employed).
- Target the right lender first time to avoid unnecessary declines and additional credit searches.
Remortgaging with bad credit
If your fixed rate is ending or you’re already on a higher rate, you may be able to:
- Transfer product with your current lender (often quicker, lighter checks).
- Remortgage to a new lender (full underwriting and valuation).
The right route depends on your credit profile, equity and timings.
Debt consolidation: proceed with care
Using a remortgage to consolidate unsecured debts can improve monthly cash-flow but turns unsecured borrowing into secured borrowing and can increase the total cost over time. Consider the long-term implications before proceeding.
Realistic pathways if your credit is complex
- Stay with your current lender (product transfer) when recent issues make a new application less likely.
- Specialist lender switch where full underwriting can consider historic blips.
- Joint Borrower, Sole Proprietor (JBSP) where affordability — not severe credit — is the main hurdle.
- Time and repair plan to improve your file, build deposit and revisit later for stronger terms.
Important notices
Your home may be repossessed if you do not keep up repayments on your mortgage. If you consolidate existing borrowing, you may pay more over the long term.
Quick fire FAQs (Bad Credit Mortgages) with Sarah Mascot, Mortgage Adviser specialising in bad credit mortgages.
Can you get a mortgage with a bad credit score?
Often, yes. It depends on what happened, when it happened, and whether the issues are now settled. Expect fewer lenders and potentially higher rates, but adverse-friendly criteria do exist.
Will I need a bigger deposit with bad credit?
Usually. A lower LTV often opens up more lenders and better pricing.
Can I remortgage with bad credit?
Sometimes via a product transfer (often quicker) or a full remortgage (full underwriting). The best route depends on your credit, equity and timelines.
Can I consolidate debts with a bad credit remortgage?
Possibly. It can simplify payments but secures debt against your home and may increase total interest over time. Consider the trade-offs carefully.
How can I improve my chances of approval?
Correct any credit file errors, reduce balances, avoid new hard searches, keep payments on time, and save a larger deposit.
How long does a bad credit remortgage take?
Product transfers can complete relatively quickly. Full remortgages may take longer, especially with complex credit histories.
Do Mortgage in Principle (MIP) checks affect my credit score?
A soft-search MIP won’t impact your score. It’s a useful way to understand indicative options before a full application.
Author: Sarah Mascot, Specialist Mortgage Adviser (Bad Credit & Debt Solutions).
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