Bad credit mortgage

How to get a mortgage with bad credit

Bad credit mortgage specialists · FCA regulated · Whole of market

A poor credit history does not have to mean mortgage rejection. Our specialist brokers know which lenders will say yes — and how to present your case to get the best deal available to you.

The basics

What is a bad credit mortgage?

A bad credit mortgage (also known as an adverse credit mortgage or sub-prime mortgage) is a mortgage product designed specifically for people whose credit history makes them ineligible for standard high street deals.

Specialist mortgage lenders take a more individual approach to assessment. Rather than rejecting an application based on a credit score alone, they look at the full picture: what type of credit issue you have, how severe it was, how long ago it happened, and what has changed since.

Even if you have been declined by your bank or a mainstream lender, there is often still a route to homeownership, it is simply a matter of finding the right lender for your situation.

Key fact: According to the 2025/26 Pepper Money Specialist Lending Study, 9.26 million UK adults (17% of the population) have experienced adverse credit in the last three years. You are far from alone, and specialist lenders exist precisely to serve this market.

Also known as

Other names for this type of mortgage

Adverse credit mortgage

The term most commonly used by lenders and brokers to describe a mortgage for someone with a poor credit history.

Sub-prime mortgage

An older term referring to mortgage products for borrowers below standard lending criteria.

Impaired credit mortgage

Another term used by some lenders and regulators, it means the same as adverse or bad credit mortgage.

Non-conforming mortgage

Any mortgage that does not conform to standard lending criteria, and bad credit is a common reason for this classification.

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Types of adverse credit

How does your credit issue affect your mortgage?

Not all adverse credit is treated the same. Specialist lenders weigh the type, severity, and age of the issue — this table shows what to typically expect.

Type of issue	Severity	On file	Deposit	What it means
Missed payments 1–2 late payments	Minor	6 years	10–15%	Many high street lenders will still consider you, especially if the payments are older than 12 months.
Multiple missed 3 or more late payments	Moderate	6 years	15–20%	Specialist lenders will consider this, particularly if your payments have been on time since.
Default Settled or unsatisfied	Moderate	6 years	15–25%	A satisfied default is viewed much more favourably. The older it is, the more lenders will consider you.
CCJ Last 6 years	Moderate–serious	6 years	15–30%	Specialist lenders can often help, particularly if the CCJ is satisfied and over 12–24 months old.
Payday loan Even if fully repaid	Moderate	6 years	15–20%	Some high street lenders decline on payday loan history alone. A specialist broker will find lenders who take a broader view.
DMP Active or completed	Serious	6 years	20–30%	Possible with specialist lenders, especially if the DMP is complete and your finances have stabilised.
IVA Active or completed	Serious	6 years	25–30%	A growing number of specialist lenders will consider applications from people with a satisfied IVA.
Bankruptcy Discharged	Serious	6 years	25–35%	Possible once discharged. Lenders typically want at least 12–36 months post-discharge with a clean record since.

Deposit requirements are indicative and vary significantly by lender, loan size, and individual circumstances. Speak to a broker for a personalised assessment.

Your situation

Bad credit mortgages for every situation

Whatever your circumstances, there is likely a route forward. Here are the most common situations our brokers help with.

First-time buyer

Bad credit first-time buyer mortgage

Being a first-time buyer already comes with extra scrutiny. Add adverse credit and your options narrow, but they do not disappear. Specialist lenders assess first-time buyers individually, and a deposit of 15–25% opens more doors.

Moving home

Moving house with bad credit

If your credit has deteriorated since your last mortgage, moving house can feel daunting. Specialist lenders understand that life happens (redundancy, illness, divorce) and assess your current financial stability alongside your credit history.

Remortgaging

Remortgage with bad credit

If credit issues arose after you took out your mortgage, your choices at renewal may be limited. But remortgaging with bad credit is achievable. If your credit has since improved, we can help you move to a more competitive mainstream rate.

Shared ownership

Shared ownership mortgage with bad credit

The government Shared Ownership scheme helps people buy a share of a property. Securing this with adverse credit is harder, but whole-of-market brokers have access to specialist lenders who will review these applications.

Right to buy

Right to buy mortgage with bad credit

Buying your council home through Right to Buy is a significant opportunity, adverse credit should not prevent you. Specialist lenders will consider Right to Buy applications from people with CCJs, defaults, or missed payments.

Buy to let

Buy-to-let mortgage with bad credit

Investment mortgages with adverse credit are more restricted but not impossible. Specialist buy-to-let lenders consider applications depending on the type and age of your credit issues, rental income potential, and deposit size.

What to expect in 2026

Bad credit mortgage rates

Bad credit mortgage rates are higher than standard deals because the lender is taking on additional risk. With standard two-year fixed rates for prime borrowers around 4-5% in 2026, here is what borrowers with adverse credit can typically expect.

As your credit file ages and your finances stabilise, you can work towards remortgaging to a better rate. We help many clients secure an initial specialist deal and then move to a more competitive product a few years later.

Important: Every lender prices risk differently. The rate offered by one lender could be very different from another, which is why using a whole-of-market broker to compare is so valuable.

Minor adverse credit

1–2 missed payments, over 12 months old

+0.5-1.5%

above standard rate

Moderate adverse credit

Defaults, CCJs satisfied 2+ years ago

+1.5-3%

above standard rate

Serious adverse credit

Recent IVA, bankruptcy, unsatisfied CCJs

+3-5%

above standard rate

Rate premiums are indicative and change with market conditions. Your home may be repossessed if you do not keep up repayments on your mortgage.

Improving your position

How to improve your chances of getting a bad credit mortgage

There are practical steps you can take right now to strengthen your application — regardless of your credit history. Even if you are not ready to apply today, these actions will make a meaningful difference when you are.

If you are unsure where you stand, the best first step is a free conversation with one of our advisors. We will give you an honest assessment and tell you exactly what, if anything, to do before applying.

✓Check all three credit reports.

Download reports from Experian, Equifax, and TransUnion — or use Checkmyfile to see all three at once. Errors on any one could be holding back your application.

✓Register to vote at your current address.

Being on the electoral roll is one of the quickest wins for your credit score and takes minutes to do.

✓Satisfy any outstanding defaults or CCJs.

Paying off unsatisfied adverse entries will not remove them, but satisfied entries are viewed far more favourably by lenders.

✓Save the largest deposit you can.

Even going from 10% to 15% can significantly expand which lenders will consider you and the rates available.

✓Avoid unnecessary credit applications.

Every hard search leaves a mark on your file. Use eligibility checkers (soft searches) rather than full applications before you are ready.

✓Keep credit utilisation below 30%.

High balances relative to your credit limit signal financial stress. Reducing them helps your score even before adverse entries age off.

✓Speak to a specialist broker before applying anywhere.

The single most effective step, as a declined application is another mark on your file.

How it works

Getting a bad credit mortgage with Fosters Financial

Our process is designed to protect your credit file while getting you the best result available.

01

Free consultation

We start with a no-obligation conversation about your situation. Nothing is submitted at this stage and your credit file is not affected.

02

We search the market

Using whole-of-market access and knowledge of each specialist lender’s criteria, we identify the best options for your situation and present them clearly.

03

Application submitted

We only apply if we are confident of success. We handle all paperwork and liaison with the lender. Our fixed fee of £499 is only payable at this stage.

04

Mortgage offer & beyond

We support you through to completion. When it is time to remortgage, or if your credit improves, we are here to help you move to a better deal.

No-obligation assessment

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Whole-of-market access

FCA regulated

£499 fixed fee, only on success

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Can I get a mortgage with bad credit in the UK?

Yes. A bad credit mortgage is specifically designed to help people with a poor credit history buy or remortgage. Specialist lenders look beyond your credit score and assess your individual situation, the type of credit issue, how long ago it occurred, and the reason behind it. According to the 2025/26 Pepper Money Specialist Lending Study, 9.26 million UK adults (17% of the population) have experienced adverse credit in the last three years. Getting a mortgage with bad credit is entirely possible; it is a matter of finding the right lenders through the right channels.
How much deposit do I need for a bad credit mortgage?

The deposit required depends on the type and severity of your adverse credit. Minor issues such as one or two missed payments typically require 10–15%; moderate issues such as a satisfied default or CCJ from over two years ago usually need 15–25%; and more serious issues such as a recent IVA, active DMP, or discharged bankruptcy may require 25% or more. The larger your deposit, the more lenders will consider you and the better the rates available.
What credit score do I need for a mortgage?

There is no universal minimum credit score for a mortgage in the UK. Each lender uses its own scoring model, Experian, Equifax, and TransUnion all produce different scores for the same person. Specialist bad credit mortgage lenders assess the full picture including your income, deposit, and the specific nature of your credit issues, rather than relying on a score alone. Even a very low credit score does not automatically rule out a mortgage.
How long does bad credit stay on my file?

Most adverse credit entries remain on your credit file for six years from the date they were first registered, not from when they were settled. This applies to missed payments, defaults, CCJs, IVAs, debt management plans, and bankruptcy. After six years they drop off automatically. The older your credit issues, the more lenders will consider your application and the better rates you are likely to be offered.
What is the difference between a default and a CCJ?

A default is registered when you fall significantly behind on a credit agreement and the lender formally closes the account. A County Court Judgment (CCJ) is a court order issued when a creditor takes legal action to recover an unpaid debt. CCJs are generally treated as more serious because they involve court proceedings. Both remain on your credit file for six years. A satisfied (fully paid) default or CCJ is viewed considerably more favourably than an unsatisfied one.
Can I get a bad credit mortgage as a first-time buyer?

Yes, getting a bad credit first-time buyer mortgage is possible, though your options will be more restricted than for buyers with a clean credit history. Specialist lenders assess first-time buyers with adverse credit on a case-by-case basis. A deposit of 15–25% and a stable employment record will significantly improve your chances. Using a specialist broker is particularly important — a rejected application from the wrong lender could make future applications harder.
How do I find the best bad credit mortgage lender?

The most effective approach is to use a whole-of-market specialist broker like Fosters Financial. We know the detailed lending criteria of every specialist adverse credit mortgage lender in the UK, which means we can match your specific situation to the right lender without requiring multiple applications — each of which would leave a hard search on your credit file. We do the work once, correctly, and only apply when we are confident of a positive outcome.
Will applying for a bad credit mortgage affect my credit score?

A full mortgage application involves a hard credit search, which leaves a footprint on your file and can temporarily reduce your score. Multiple hard searches in a short period can concern lenders. This is exactly why using a specialist bad credit mortgage broker matters — Fosters Financial assesses your eligibility before making any application and only submits to lenders we are confident will accept you, protecting your credit file throughout.

Getting a mortgage with bad credit

If you are struggling to get your application approved, it is still possible to get a mortgage with our help. Watch our video to discover how we could assist you!