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How To Get A Mortgage With Bad Credit

Paying with a credit card

While having bad credit can present challenges, it's not necessarily a roadblock to obtaining a mortgage. In this article, we'll explore practical steps and considerations for individuals seeking to navigate the mortgage market with less-than-perfect credit scores.

Understanding Bad Credit

Before delving into the mortgage application process, it's essential to understand what constitutes bad credit and its implications. Bad credit typically refers to a low credit score resulting from missed payments, defaults, County Court Judgments (CCJs), or bankruptcy. Lenders use credit scores to assess an individual's creditworthiness and determine the level of risk associated with lending to them.

Steps to Secure a Mortgage with Bad Credit

  1. Assess Your Credit Report Start by obtaining a copy of your credit report from one of the UK's credit reference agencies, such as Experian, Equifax, or TransUnion. Review the report carefully to identify any errors or discrepancies that may be negatively impacting your credit score. Dispute any inaccuracies and work to rectify them promptly.

  2. Improve Your Credit Score While improving a credit score takes time, there are steps you can take to demonstrate responsible financial behaviour. This includes making timely payments on existing debts, reducing outstanding balances, and avoiding applying for new credit in the short term. Over time, these positive actions can help improve your creditworthiness and increase your chances of securing a mortgage. One way to help clearing down some debt quicker may be to consolidate some of it into more manageable payment. Have a look through our guide to debt consolidation for more help on this

  3. Save for a Larger Deposit Lenders may be more inclined to offer a mortgage to applicants with bad credit if they can provide a larger deposit. Saving for a substantial deposit demonstrates financial discipline and reduces the lender's risk, making you a more attractive borrower. For ideas on how to save some money, check out our 'Ways to Save Money' guide

  4. Seek Specialist Lenders While traditional high street banks may be hesitant to lend to individuals with bad credit, there are specialist mortgage lenders who cater specifically to this market. These lenders assess applications on a case-by-case basis and may be more willing to consider factors beyond credit scores, such as employment stability and income.

  5. Consider Guarantor Mortgages Another option for those with bad credit is a guarantor mortgage, where a family member or close friend with good credit acts as a guarantor for the loan. In this arrangement, the guarantor provides additional security for the mortgage, increasing the likelihood of approval.

  6. Consult with a Mortgage Broker Engaging the services of a reputable mortgage broker can be invaluable when navigating the mortgage market with bad credit. Brokers have access to a wide range of lenders and can help identify mortgage products tailored to your individual circumstances. They can also provide expert guidance throughout the application process, increasing your chances of success.. Also ready through our '5 Reasons To Use A Mortgage Broker'

  7. Be Realistic and Flexible It's essential to be realistic about your expectations and remain flexible throughout the mortgage application process. While securing a mortgage with bad credit is possible, it may require compromises such as higher interest rates or stricter lending terms. By staying open-minded and exploring all available options, you can increase your chances of finding a suitable mortgage solution.


Securing a mortgage in the UK with bad credit may seem daunting, but with careful planning, patience, and perseverance, it's achievable. By taking proactive steps to improve your creditworthiness, exploring alternative lending options, and seeking professional guidance when needed, you can navigate the mortgage market with confidence. Remember, each individual's financial situation is unique, so it's essential to assess your options carefully and choose the path that best suits your circumstances. With determination and the right support, homeownership can be within reach, even for those with less-than-perfect credit histories.

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