In this guide For more information, see FCA guidance on mortgages.
- Bad credit does not automatically prevent you from getting a mortgage
- Specialist UK lenders are built for applicants with defaults, CCJs, IVAs and more
- How recent the issue is matters as much as what the issue was
- The right broker makes the critical difference — many specialist lenders are broker-only
Having bad credit can feel like a door slamming shut on homeownership — but for most people, it is not the end of the road. Specialist lenders in the UK cater specifically for borrowers with adverse credit, and a whole-of-market broker can find them.
What counts as bad credit for a mortgage?
Lenders check your credit file when assessing your application. Here is how they view different types of credit issues:
| Issue | Severity | Notes |
|---|---|---|
| 1–2 missed payments | Low | May not prevent a mainstream application if more than 12 months ago |
| Default | Medium | Satisfied defaults treated better than unsatisfied; age matters |
| County Court Judgement (CCJ) | Medium–High | Satisfied CCJs viewed more favourably; amount and recency are key |
| Debt Management Plan (DMP) | Medium–High | Active DMPs limit options; completed DMPs are manageable with time |
| IVA | High | Most mainstream lenders decline; specialist lenders can help post-discharge |
| Bankruptcy | Very High | Requires discharge (usually 1 year); most lenders want 2–3 years clear after |
| Mortgage arrears | Very High | The most serious flag — shows failure to pay a mortgage specifically |
How recent is the issue?
The age of the credit issue is the single biggest factor after its type. Most credit events stay on your file for six years, but lender attitudes shift significantly over time:
Timeline example
A CCJ registered last month will likely mean you are restricted to a handful of specialist lenders at higher rates. The same CCJ from four years ago — especially if satisfied — may not prevent a reasonable mainstream application at all.
| How long ago | Lender options |
|---|---|
| Under 12 months | Very limited — specialist lenders only, higher rates |
| 1–3 years ago | Wider specialist market; rates begin to improve |
| 3–6 years ago | Some mainstream lenders may consider you |
| Over 6 years ago | Event drops off your credit file entirely |
Can you still get a mortgage?
Yes, in most cases. The UK mortgage market has a well-established specialist sector — lenders such as Kensington Mortgages, Pepper Money, Bluestone and Together have built their business around exactly these situations. They take on more risk, so they charge higher rates, but the market is competitive and products have improved significantly.
Good to know
Many specialist lenders only work through brokers — they are not available on comparison sites or directly to the public. This is one of the core reasons a specialist broker is essential for adverse credit mortgages.
How much deposit will you need?
Adverse credit mortgages typically require larger deposits than standard mortgages. As a rough guide:
| Credit situation | Typical deposit needed |
|---|---|
| Minor issues (1–2 missed payments, older defaults) | 10%–15% |
| Moderate issues (defaults, small CCJs) | 15%–25% |
| Serious issues (IVA, bankruptcy, multiple CCJs) | 25%+ |
What rates should you expect?
Rates for adverse credit mortgages are higher than standard, but vary considerably. The key insight: these are not permanent rates. After two to three years of on-time payments, you can remortgage onto a standard product — often saving hundreds of pounds a month.
Get on the adverse credit mortgage
Accept the higher rate for now. The goal is getting into the property and building payment history.
Build a two-year track record
Two years of on-time mortgage payments is one of the most powerful things you can do for your credit file.
Remortgage to a standard rate
At the end of your initial deal, your broker can often find a significantly better rate — the adverse credit issue is older and your payment history has improved.
How to improve your chances before applying
- Satisfy any outstanding CCJs or defaults — “satisfied” entries are viewed much more favourably
- Register on the electoral roll — one of the fastest ways to improve your score
- Build positive history — a credit builder card, used and repaid monthly, adds consistent positive data
- Reduce credit utilisation — aim to use less than 30% of your available credit limit
- Avoid new applications in the six months before applying for a mortgage
Watch out
Applying to multiple lenders yourself without guidance leaves hard searches on your credit file — and each one can make your profile look worse. A broker submits once, to the right lender.
Frequently asked questions
Can I get a mortgage with a CCJ?
Yes, in many cases — particularly if the CCJ is satisfied, relatively small, and was registered over two years ago. A satisfied CCJ from four years ago may have minimal impact with specialist lenders.
Can I get a mortgage after bankruptcy?
Yes, once discharged (typically after one year). Most specialist lenders want at least one to two years of clean credit history after discharge. Lenders like Bluestone and Pepper Money have products designed specifically for post-bankruptcy applicants.
Is it better to wait until my credit is perfect?
Not necessarily. If you have a decent deposit and stable income, buying now and remortgaging after two to three years can be better than waiting — especially if property values are rising. A broker can model both options for your specific situation.
Speak to an adviser
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