If you have bad credit, you may still be able to get a mortgage in the UK. A poor credit history does not automatically mean you will be refused. Lenders will consider the type, age and severity of your credit problems, alongside your income, affordability, deposit, existing debts and overall financial circumstances.
Can you get a mortgage with bad credit?
Yes, it is possible to get a mortgage with bad credit, but your choice of lenders and mortgage products may be more limited.
There is no single definition of "bad credit" and there is no universal credit score that guarantees mortgage approval. Lenders use their own criteria when assessing applications, which means two people with similar credit histories could receive different decisions.
A lender may consider factors including:
- Recent or historic missed payments
- Defaults
- County Court Judgments (CCJs)
- The amount and age of outstanding debts
- How much of your available credit you use
- Your income and employment
- Your monthly expenditure
- Your deposit
- The property you want to buy
- Your existing financial commitments
- Whether your recent credit history shows improvement
The Financial Conduct Authority (FCA) current mortgage rules place significant emphasis on whether borrowers can afford their repayments. The regulator is also reviewing mortgage rules to explore whether lenders can take a more flexible view of some borrowers with past credit difficulties, while maintaining responsible lending and affordability protections.
The key point is that bad credit does not automatically equal no mortgage.
What matters is understanding exactly what is on your credit file and identifying lenders whose criteria may fit your circumstances.
What counts as bad credit when applying for a mortgage?
"Bad credit" is a broad term. Mortgage lenders generally look beyond a headline credit score and assess the underlying information in your credit history.
| Credit issue | Potential impact on a mortgage | What lenders may consider |
|---|---|---|
| Missed payment | Can reduce your options, particularly if recent | How recent, how many and whether it has been settled |
| Default | Can make mortgage approval more difficult | Date, amount, status and circumstances |
| CCJ | Can significantly restrict lender choice | Date, amount, whether satisfied and how quickly it was paid |
| High unsecured debt | May reduce affordability | Total debt and monthly commitments |
| Multiple recent credit applications | Can concern some lenders | Number and timing of hard searches |
| Historic credit problems | May have less impact over time | Age and recent payment behaviour |
There is therefore a major difference between someone who missed a credit card payment several years ago and someone who has multiple recent defaults or an unpaid CCJ.
This is why simply asking whether you have "bad credit" is not enough. The detail behind the credit history matters.
Can I get a mortgage with missed payments?
Potentially, yes.
A missed payment can affect your mortgage application, particularly if it is recent. Lenders may look at whether the missed payment was isolated or part of a wider pattern of financial difficulty.
MoneyHelper notes that recent missed or late payments can be a warning sign for mortgage lenders, although their impact can reduce as they become older.
Lenders may consider:
- How many payments were missed.
- When the missed payments occurred.
- Whether they were on secured or unsecured credit.
- Whether the account is now up to date.
- Whether there are other adverse credit markers.
- Your current income and expenditure.
- Whether your recent financial behaviour demonstrates stability.
For example, one historic missed payment followed by several years of consistent payments presents a very different risk profile from repeated missed payments across multiple accounts.
The more recent and severe the missed payments, the more important lender-specific criteria become.
Can I get a mortgage with a default?
A mortgage with a default can be possible, depending on the circumstances.
A default normally indicates that an account has been seriously behind on payments and the lender has recorded the account as being in default. Defaults can remain on a credit file for six years from the date of default, although their impact can change as they become older.
When assessing an application with a default, lenders may consider:
- The date of the default
- The amount involved
- Whether it has been paid
- How long ago it was registered
- Whether there are other defaults
- The type of credit involved
- Your current financial position
An important distinction is between a recent unpaid default and an older satisfied default.
Paying a default does not normally make the record disappear immediately. However, demonstrating that the debt has been dealt with can form part of the wider picture a lender considers.
Can I get a mortgage with a CCJ?
A CCJ can make getting a mortgage more difficult, but it does not necessarily make it impossible.
A County Court Judgment ( CCJ) is a court judgment relating to an unpaid debt. In England, Wales and Northern Ireland, a CCJ can remain on the Register of Judgments, Orders and Fines for six years unless the full amount is paid within one month of the judgment. If it is paid later, it can be marked as satisfied while remaining on the register for six years.
For mortgage purposes, the important factors can include:
- How recent the CCJ is
- The amount of the judgment
- Whether it has been satisfied
- When it was satisfied
- Whether you have other adverse credit
- Your deposit
- Your income and affordability
- The lender's individual criteria
A recent, unpaid CCJ may significantly reduce the number of lenders available to you.
An older, satisfied CCJ may be viewed differently.
This is one reason why applying indiscriminately to multiple lenders can be a poor strategy. The objective should be to understand your credit profile first and then identify lenders whose criteria are appropriate.
How long do defaults and CCJs affect a mortgage application?
Defaults and CCJs generally remain visible on relevant credit records for up to six years, subject to the specific circumstances and reporting rules.
A default normally remains for six years from its default date.
A CCJ generally remains on the Register of Judgments, Orders and Fines for six years unless it is paid in full within one month and removed in accordance with the relevant process.
However, six years is not a simple mortgage waiting period.
A lender does not necessarily treat every credit problem as equally serious throughout that period. The age, severity, amount and current status of the adverse credit can all influence how an application is assessed.
This means someone with a five-year-old satisfied default may have a very different set of mortgage options from someone with a recently registered default.
Does paying a default or CCJ improve my chances of getting a mortgage?
It can help demonstrate that the debt has been dealt with, but paying the debt does not necessarily remove the adverse marker immediately.
For a default, the record generally remains on the credit file for six years from the default date, even after the debt has been paid.
For a CCJ, paying the full judgment within one month can allow it to be removed from the register. If it is paid after that period, it can generally be marked as satisfied but remains for the six-year period.
The practical lesson is straightforward:
Do not assume that paying a debt automatically repairs your credit history overnight.
Instead, focus on building a consistent recent payment history, correcting inaccurate information and presenting your current financial position accurately.
How does bad credit affect mortgage interest rates and deposits?
Bad credit can reduce the number of mortgage products available to you and may mean the most competitive mainstream rates are not available.
Depending on the circumstances, a lender may require a larger deposit or offer a mortgage at a higher interest rate to reflect its assessment of risk.
However, there is no universal rule such as "bad credit means you need a 20% deposit".
Your deposit is only one part of the assessment.
For example, a borrower with a substantial deposit but significant recent adverse credit may still have limited options. Conversely, someone with a smaller deposit and older, relatively minor credit issues may have more options depending on their wider circumstances.
The right question is therefore not simply:
"How much deposit do I need with bad credit?"
It is:
"What mortgage options could fit my specific credit history, deposit and affordability?"
What do mortgage lenders look at besides your credit score?
Your credit score is only one part of the mortgage assessment.
Lenders can consider your wider financial circumstances, including your income and expenditure, to determine whether the mortgage is affordable.
The FCA's mortgage framework requires firms to assess whether customers will be able to repay the sums borrowed and interest.
Depending on the lender and application, factors can include:
Income
Your salary, self-employed income, bonuses, commission or other acceptable income may be assessed according to the lender's criteria.
Expenditure
Mortgage lenders can examine regular household spending and existing financial commitments when assessing affordability.
Existing debt
Credit cards, loans, car finance and other commitments can affect how much you may be able to borrow.
Deposit
A larger deposit can reduce the loan-to-value ratio, although it does not override affordability or credit-history concerns.
Employment
Employment stability and the type of income you receive can influence the assessment.
Recent financial behaviour
A period of consistent payments can provide a different picture from ongoing missed payments.
This is why improving the overall financial picture can be more useful than focusing exclusively on a credit score.
What is the best way to get a mortgage with bad credit?
If you need a mortgage with bad credit, preparation is particularly important.
A sensible process is:
1. Check your credit reports
Review your credit reports before applying.
Look for:
- Incorrect defaults
- Incorrect payment markers
- Outdated addresses
- Incorrect financial associations
- CCJs
- Outstanding balances
- Accounts that should have been removed
Do not rely solely on the numerical credit score. The underlying information is what matters.
2. Establish exactly what adverse credit you have
Make a simple record of:
| Issue | Date | Amount | Paid? | Current status |
|---|---|---|---|---|
| Missed payment | Month/year | £X | Yes/No | Up to date |
| Default | Month/year | £X | Yes/No | Satisfied/unsatisfied |
| CCJ | Month/year | £X | Yes/No | Satisfied/unsatisfied |
This gives you a much clearer picture of your application before approaching a lender.
3. Avoid unnecessary credit applications
Multiple applications can create additional hard searches and may make your credit profile look more financially stressed.
MoneyHelper recommends avoiding repeated mortgage applications and checking your position before applying.
4. Strengthen your recent financial history
Where possible:
- Keep all current payments up to date.
- Reduce unnecessary borrowing.
- Avoid relying heavily on overdrafts.
- Reduce outstanding unsecured debt.
- Keep household finances organised.
- Correct inaccurate information on your credit reports.
5. Assess affordability before choosing a property
Do not base your property budget solely on the maximum amount a lender might theoretically offer.
Consider whether the mortgage remains affordable if your circumstances change, interest rates increase or household expenditure rises.
6. Consider specialist mortgage advice
Different lenders have different criteria for adverse credit.
A mortgage adviser with experience in credit-impaired applications may be able to identify lenders that are more appropriate for your circumstances without submitting applications indiscriminately.
The FCA's current mortgage rule review also recognises the need for lenders to consider a broader range of borrower circumstances, including some consumers with past credit difficulties.
Should I wait for my credit to improve before applying for a mortgage?
Not necessarily.
Whether waiting makes sense depends on why your credit is poor and how your circumstances are changing.
Waiting could potentially improve your position if you are:
- Still missing payments
- Carrying significant unsecured debt
- Dealing with recent defaults
- Experiencing unstable income
- Unable to demonstrate affordability
- Building a stronger deposit
However, waiting purely because you have an old adverse credit marker may not always be necessary.
The important question is whether waiting would materially improve the mortgage options available to you.
This is where an assessment of your individual circumstances can be more useful than a generic "wait six years" rule.
Can I get a joint mortgage if one applicant has bad credit?
A joint mortgage may still be possible if one applicant has adverse credit, but the credit history of both applicants can affect the application.
A lender may assess both applicants':
- Credit histories
- Income
- Existing debts
- Expenditure
- Financial commitments
- Affordability
- Deposit
The financial association created by joint borrowing can also be important. MoneyHelper notes that joint financial arrangements can create links between applicants' credit profiles.
The outcome therefore depends on the full circumstances rather than simply whether one person has a low credit score.
Can a mortgage broker help with bad credit?
A specialist mortgage broker can be particularly useful when an application involves defaults, CCJs or recent missed payments.
The benefit is not simply finding "a lender that accepts bad credit". The more important task is understanding which lenders' criteria may fit your specific circumstances.
This can help reduce the risk of making unsuitable applications.
A broker may assess factors such as:
- Type of adverse credit
- Date of each credit event
- Amount outstanding
- Whether debts are satisfied
- Deposit
- Income
- Employment
- Affordability
- Property type
- Existing financial commitments
MoneyHelper also recommends considering a mortgage broker when poor credit could affect your mortgage options because lenders have different criteria.
What should I do if I have been refused a mortgage because of bad credit?
Do not immediately submit another application to a different lender.
First, establish why the application was unsuccessful.
Possible reasons include:
- Recent missed payments
- Defaults or CCJs
- High levels of existing debt
- Affordability concerns
- Insufficient income
- Property-related issues
- Lender-specific criteria
- Too many recent credit applications
- Errors in your credit report
MoneyHelper recommends checking your credit file and avoiding repeated applications in a short period.
A refusal is not necessarily a statement that no mortgage is available to you. It may simply mean that the particular lender or product was not suitable for your circumstances.
How can I improve my chances of getting a mortgage with bad credit?
There is no guaranteed way to get approved, but you can improve the overall strength of your application.
Focus on these areas:
Keep payments up to date: Recent consistent payment behaviour can help demonstrate improved financial management.
Reduce unsecured debt: Lower monthly commitments can improve affordability.
Check your credit reports: Correct errors before making a mortgage application.
Avoid unnecessary applications: Do not apply to multiple lenders without understanding their criteria.
Build your deposit: A larger deposit can reduce your loan-to-value ratio, although it does not eliminate credit concerns.
Prepare your documentation: Have evidence of income, expenditure, deposit and existing commitments available.
Get appropriate advice: Specialist advice can help you understand which mortgage options may be realistic, including first-time buyer purchases and remortgaging with adverse credit on your file.
The objective should not be to make your credit history look perfect. It should be to present an accurate picture of your current financial position and identify a mortgage that is genuinely affordable, with suitable protection and insurance in place once you own the property.
Mortgage with bad credit: what matters most?
There is no single answer because "bad credit" covers a wide range of circumstances.
Someone with one old missed payment is in a very different position from someone with several recent defaults and an unpaid CCJ.
The most important factors are generally:
- What happened?
- When did it happen?
- How much money was involved?
- Has the debt been repaid or satisfied?
- Are there other adverse credit markers?
- What does your recent payment history look like?
- Can you demonstrate that the proposed mortgage is affordable?
- How much deposit do you have?
Understanding these factors before applying can put you in a much stronger position. Our mortgage questions and answers cover many of the points buyers raise, and you can always speak to an adviser about your own credit history.
Frequently Asked Questions About Mortgages With Bad Credit
Can I get a mortgage with a 500 credit score in the UK?
There is no universal minimum credit score for getting a UK mortgage. Credit reference agencies calculate scores differently and lenders use their own criteria. A lender will consider the underlying credit history, affordability, income, deposit and wider financial circumstances rather than relying on one score alone.
Can I get a mortgage with a CCJ?
Yes, a mortgage with a CCJ may be possible, depending on the age, amount and status of the judgment and the lender's criteria. A recent or unpaid CCJ can significantly reduce the number of available lenders, while an older satisfied CCJ may have less impact.
Can I get a mortgage with a default?
A mortgage with a default can be possible. Lenders may consider when the default was registered, how much was owed, whether it has been satisfied and whether you have maintained your other financial commitments since. Defaults generally remain on a credit file for six years from the default date.
How long after a default can I get a mortgage?
There is no universal waiting period after a default. Some lenders may consider applications while a default remains on your credit file, depending on their criteria. The age, amount and status of the default, together with your deposit, income and affordability, can all affect your options.
How long does a CCJ affect getting a mortgage?
A CCJ generally remains on the Register of Judgments, Orders and Fines for six years unless it is paid in full within one month and removed under the relevant process. Mortgage lenders may consider the age, amount and status of the CCJ when assessing an application.
Can I get a mortgage with missed payments?
Yes, it may be possible, particularly where missed payments are historic and your recent payment history is strong. Recent or repeated missed payments can make mortgage approval more difficult. Lenders will consider the wider credit history and your ability to afford the proposed mortgage.
Will paying off a default improve my chances of getting a mortgage?
Paying a default does not normally remove it immediately from your credit file. However, it can demonstrate that the debt has been dealt with. The default will generally remain for six years from its default date, so lenders may still see it during that period.
Should I use a mortgage broker if I have bad credit?
Specialist mortgage advice can be useful when you have defaults, CCJs or missed payments because lenders use different criteria. The key benefit is identifying potentially suitable lenders before making unnecessary applications, rather than applying widely and hoping one lender accepts you.
Final thoughts: getting a mortgage with bad credit
Having bad credit does not automatically mean you cannot buy a home.
Defaults, CCJs and missed payments can make the process more complicated, but the impact depends on the type, severity, age and current status of the credit issues, as well as your income, affordability, deposit and wider financial circumstances.
The most important step is to understand your position before applying. Check your credit history, establish exactly what adverse information is recorded, avoid unnecessary applications and make sure any mortgage you consider is genuinely affordable.
At Silver Oak Financial, we believe mortgage advice should start with understanding your circumstances rather than simply searching for a product. If your credit history is making you uncertain about your mortgage options, speaking to an experienced adviser can help you understand what may be achievable and what steps could strengthen your position.
Your credit history is part of your financial story. It does not necessarily define your ability to move forward.
This article is for general information and does not constitute personalised mortgage or financial advice. Mortgage availability and lender criteria can change, and acceptance is never guaranteed. Your home may be repossessed if you do not keep up repayments on your mortgage.
Frequently asked questions
Your home may be repossessed if you do not keep up repayments on your mortgage. This guide is general information, not personal advice.