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Updated October 2025

Large deposit, bad credit?

A bigger deposit lowers your loan-to-value (LTV) and can open up options with specialist lenders even if you’ve had late payments, defaults, CCJs or an IVA/bankruptcy. We can quickly look at your options and review your what you want to do. We will assess your credit file, income and affordability, then compare all options side-by-side  (including your current lender if you have a mortgage) to find the most suitable route. We are FCA-regulated, CeMAP-qualified advisers with access to 130+ lenders and 25,000+ products, backed by thousands of verified 5★ reviews. Get a soft-search same day Mortgage in Principle with no impact on your credit score and get clear next steps to strengthen your mortgage approval.

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Jump to Bad Credit with a Large Deposit Overview by Bad Credit Specialist

Can I get a mortgage with bad credit but a large deposit?

This is a regular question. And the answer is, yes you can. A bigger deposit lowers the amount you need to borrow and therefore reduces the lender’s risk. This is known as your LTV (Loan-to-Value). If the loan you need, in comparison to the price of the house is lower, then your options increase. This includes various types of bad or adverse credit, including late payments, defaults, CCJ’s, IVA’s and DMP. Bankruptcy also may have options.

Your options still depend on the detail in your credit file, how recent/severe the issues are, and whether the loan is affordable under the lender’s stress tests.

Deposit LTV Typical impact on options*
10% 90% Limited with bad credit but there are options. Less mainstream lenders.
15–20% 85–80% Some specialist lenders may consider, depending on issue age/severity.
25–30% 75–70% Many more options; rates/fees still higher than prime.
40%+ ≤60% Broadest set of options among specialist lenders; materially stronger case.

 

At a glance

  • Lower LTV = stronger case: Larger deposits open more doors with adverse-credit lenders.
  • What still matters: Issue recency/severity, stable income, sensible debt-to-income, and clean recent conduct.
  • What we do: Review your credit file, goals and affordability, then compare thousands of mortgage products (including your current lender) to find the right solution.
  • Next step: Get a soft-search Mortgage in Principle. We can do this for you today without any impact on your credit score.

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Your home may be repossessed if you do not keep up repayments on your mortgage.

 

Get peace of mind with The Mortgage Broker

Bad credit is more common than you think – in fact: 8.38million people have had bad credit in the last 3 years. Oubad credit mortgage advisers deal with it every day. We’ll review your credit file, income and affordability, explain any red flags in plain English, and outline clear next steps to strengthen your case. A large deposit really helps you.

With access to 130+ lenders (including specialist options), we’ll compare criteria and only apply where your profile is most likely to be accepted, helping protect your credit score and saving you time. No jargon, no judgement, just no-nonsense advice and a route that fits your circumstances.

  • Poor Credit Scores
  • DMP and IVA Options
  • Debt Consolidation
  • CCJs and Defaults
 1.76m people with adverse credit plan to buy in the next 12 months 89% of successful mortgages are through a mortgage broker
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Why a large deposit helps – examples

Lower LTV = lower risk. If you buy a £300,000 home and put down £120,000 (40%), you only need a £180,000 loan. 60% LTV. That gives lenders more cushion if property prices fall or if you miss payments.

Potentially better rates & terms. You may still pay more than someone with perfect credit, but a large deposit can narrow the gap.

Find out how to qualify for a bad credit mortgage

At a glance (what lenders will look for)

  • Identity, address & right to reside are watertight.
  • Income is stable and passes their affordability stress test.
  • Deposit is verified with a clean source of funds trail.
  • Recent conduct is clean (last 6–24 months).
  • Adverse items are explained (brief, factual, evidenced).

 

A default can be removed after six years if resolved. It’s advisable to routinely check your credit report to ensure its accuracy.

Yes, some lenders may accept a guarantor to improve your mortgage approval chances. The guarantor must have a strong credit profile.

Yes, remortgaging is possible with bad credit, but options may be limited. Consulting a mortgage broker can help identify potential lenders willing to consider your application.

A DMP is an informal agreement to pay back loans at a reduced rate. It can complicate mortgage borrowing, but some lenders may offer options if you show regular payments and financial improvements.

You can join the electoral roll, regularly pay off credit balances, avoid payday loans, and ensure any credit associations have a good financial status. It’s better to build a strong credit history.

Got an eye on your dream home? Speak to one of our friendly advisors today

No matter what your credit status is - we can help!

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Documents & prep checklist (bad credit mortgages)

At a glance (what lenders will look for)

  • Identity, address & right to reside are watertight.
  • Income is stable and passes their affordability stress test.
  • Deposit is verified with a clean source of funds trail.
  • Recent conduct is clean (last 6–24 months).
  • Adverse items are explained (brief, factual, evidenced).

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Bad credit mortgages with a large deposit: a friendly, straight-talking guide (with Sarah Mascot)

You’ve saved hard. Or you have money through another means, sometimes sad, However, Your large deposit is your superpower: even if your credit file shows defaults, CCJs, a DMP or IVA, or other bumps in the road. This blog is a no-nonsense overview of bad credit mortgages with a large deposit: what helps, what to watch, and how we approach cases like yours every day.

Check my options

At a glance

  • Lower loan-to-value (LTV) = lower risk to lenders
  • A big deposit can widen lender choice and improve pricing
  • Recent adverse still matters, but context + stability count
  • We present your full story, not just the score

Why your big deposit changes the conversation

A larger deposit (often 25–30%+ and sometimes lower LTV still) can soften the impact of recent or historic adverse. Lenders see commitment, discipline and lower risk. That can mean more options, more flexible criteria and clearer paths to approval — provided affordability stacks up.

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Quick borrowing guide (no impact on your credit score)

For a rough estimate of what you might borrow, try our calculators. Pop in a few details and see an indicative figure in minutes.

Real talk: common “bad credit + big deposit” scenarios

Defaults (secured or unsecured)
  • Recency & size matter. Multiple defaults in the last 12 months tighten criteria.
  • Defaults aged 2–4+ years often carry less weight at lower LTVs.
  • Your larger deposit can offset perceived risk and keep mainstream and specialist routes open.
CCJs
  • A CCJ is serious, not terminal. Lenders look at amount, date, reason, and whether it’s satisfied.
  • Paid within a month? You can often apply to have it removed from your file. Otherwise it usually remains for six years.
  • Substantial deposit = stronger case, wider lender shortlist.
DMPs & IVAs
  • DMP shows proactive debt management. Evidence of on-time payments helps.
  • IVA limits options while active; post-completion with a larger deposit and stability can reopen choices.
  • We’ll time your application and target lenders who weigh context sensibly.

Routes to compare (we’ll model the numbers)

  • Purchase with adverse — leverage your big deposit for a lower LTV.
  • Remortgage — stay with your current lender (product transfer) or switch to a specialist.
  • Second-charge mortgage — keep your main mortgage and raise extra separately if that’s more cost-effective with your credit profile.

We’ll compare monthly cost, total cost and flexibility so you can choose the most suitable path.

Compare my routes

Sarah Mascot, Bad Credit Mortgage Specialist

Q: Sarah, when someone has bad credit but a large deposit, what changes?
Sarah: The conversation becomes about risk and story. A big deposit lowers LTV, which reduces lender risk. Then we explain the why behind the credit markers and show recent stability — income, bank statements, on-time payments. That combination can unlock better choices.

Q: How recent adverse affects things?
Sarah: Recency is key. A default last month is different to one three years ago. But a larger deposit and clean recent conduct can still move the dial, especially with specialist lenders who read cases in context.

Q: What documents help the most?
Sarah: Clear ID and address, payslips or accounts, bank statements, and if relevant a short explanation letter for the adverse event (e.g. house move bill, illness, redundancy). With DMP/IVA, proof of payments helps.

Q: Common mistake to avoid?
Sarah: Don’t apply to lots of lenders randomly. Multiple hard checks can slow things down. Speak to a broker first; we’ll position your case properly and protect your credit footprint.

Q: Final tip for readers with a big deposit?
Sarah: Use your deposit strategically. Sometimes nudging LTV down a bracket can widen options or improve pricing. We’ll show you the trade-offs on paper.

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First-time buyers with bad credit & a big deposit

A large deposit can compensate for a thin file or past blips. We’ll get you mortgage-ready with a Mortgage in Principle (MIP), tidy paperwork, and a realistic budget so you can view homes with confidence.

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How we help (and why people choose us)
  • Access to 130+ lenders and 25,000+ products, including broker-only ranges
  • Deep experience with bad credit, complex income, debt consolidation
  • No-nonsense advice in plain English; clear pros/cons before you decide
  • Secure digital journey + friendly specialists when you need them
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FAQs:  bad credit mortgages with a large deposit


No one can guarantee approval. A bigger deposit strengthens the case by lowering LTV and perceived risk, but lenders still check affordability and recent conduct.

Many specialist options open from around 25–30% deposit, with more flexibility as LTV drops (e.g. 60–70%). It varies by lender and your credit history.

We’ll model both: buy now at low LTV vs wait. The right answer depends on pricing today, the recency of adverse, income stability and your goals.

Sometimes. It can lower monthly outgoings but may increase total interest over time and puts your property at risk if repayments are missed. We’ll show a side-by-side comparison before you decide.
Next steps
  1. Run the calculators for a quick borrowing guide
  2. Share your credit story — context helps more than you think
  3. We’ll source and compare specialist options at your lower LTV
  4. Secure your MIP and move forward with confidence
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Important information

Your home may be repossessed if you do not keep up repayments on your mortgage.

If you are considering debt consolidation, be aware that securing short-term debts against your home may increase the overall amount you repay in the long term and puts your property at risk if you miss payments.

We provide regulated, advice-based recommendations tailored to your circumstances and lender criteria at the time of application. Eligibility and pricing change and are subject to status and valuation.

Speak with an advisor today!
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