Adverse Credit
Bad Credit Mortgages: The Complete UK Guide
Most people with past credit problems can get a mortgage. What decides it is how serious the problems were, how recent they are and whether they are settled, and then matching that to the right lender. This guide explains how lenders think, problem by problem.
Written and reviewed by Davi Thakar, CeMAP qualified mortgage and protection adviser Updated
Yes, most people with past credit problems can get a mortgage. What decides it is how serious the problems were, how recent they are and whether they are settled, and then matching that to a lender that accepts them.
“Bad credit” covers everything from one late phone bill to bankruptcy. Lenders treat those very differently, and so should you. Plenty of people with past credit problems get a mortgage from a mainstream lender at a normal rate. Others need a specialist lender for a few years, then move to a cheaper deal once their history improves.
This guide explains how lenders judge each type of problem, what deposit and costs to expect, and the steps that make the biggest difference. Each section links to a detailed guide on that problem. If you would rather we looked at your file with you, see our adverse credit mortgage advice.
Can you get a mortgage with bad credit?
Usually, yes, with the right lender. Older, smaller and settled problems are accepted by many mainstream lenders. More recent or serious problems, such as a recent CCJ, an IVA or a debt relief order, usually need a specialist lender, a bigger deposit and a higher rate for a few years. The table shows where each problem typically sits.
At a glance: how lenders view each problem
| Credit problem | Stays on file | Typical lender view |
|---|---|---|
| Missed or late payments | 6 years | Often fine if more than 12 months ago and now up to date |
| Defaults | 6 years from default date | Depends on size, age and whether paid |
| CCJs | 6 years, unless paid within a month | Satisfied and older CCJs widely accepted by specialists |
| Debt management plan | Linked accounts usually show defaults or arrears | Some specialists accept, especially once completed |
| Debt relief order | 6 years | Specialist lenders, usually after it has ended |
| IVA | 6 years from start | Usually after completion, with specialists |
| Bankruptcy | 6 years | After discharge, often several years later |
| Repossession | 6 years | The most restrictive. Few lenders, usually years later |
| Payday loans | 6 years | Many lenders decline recent use even if repaid on time |
How do lenders decide?
Lenders do not use the credit score you see in an app. They use their own scoring and rules, and they look at the details behind each entry:
- Recency. The single biggest factor. Problems in the last 12 months narrow your options most. Many mainstream lenders accept problems over two or three years old, particularly if settled.
- Severity. A late payment is less serious than a default, which is less serious than an IVA or bankruptcy.
- Size. A £200 default and a £20,000 default are not treated the same.
- Settled or not. Satisfied defaults and CCJs are viewed more kindly.
- Type of debt. Problems with a previous mortgage or rent count most.
- Pattern. One bad patch with a clear reason, such as illness or redundancy, is easier to accept than repeated problems.
Then they ask the same questions as for anyone: can you afford it, how big is your deposit, and is the property acceptable.
The information comes from the three main credit reference agencies, Experian, Equifax and TransUnion. The ICO explains what your credit file holds, how to get a free copy and how to correct errors.
Mainstream or specialist lender?
Mainstream lenders, including many high street banks and building societies, accept minor and older problems. Some have published rules, for example ignoring small settled defaults after a set period.
Specialist lenders focus on borrowers with credit problems. They assess cases manually, accept more recent and more serious issues, and price by risk, usually in tiers.
Applying to the wrong lender costs you more than time. Each application leaves a search on your file, and a decline can make the next lender more cautious. That is the main reason people with credit problems use a broker.
Which situations do lenders see most?
These are illustrative situations, not Option Finance client outcomes.
One old blip
A single late payment or a small settled default from several years ago. Many mainstream lenders will look past it.
Often a normal rateA recent default or CCJ
Registered in the last year or two. Usually a specialist lender and a deposit of 10% to 15%.
Size and status decide the lenderStill in a debt plan
Paying a debt management plan on time. A few specialists lend, counting the plan payment as an outgoing.
A clean plan record is keyAfter formal insolvency
An IVA, debt relief order or bankruptcy in recent years. Specialist lenders, usually after it has ended, with a larger deposit.
Time and deposit do the workHow much deposit will you need?
| Your credit history | Typical minimum deposit |
|---|---|
| Minor, older problems now settled | 5% to 10% with some lenders |
| A recent default or CCJ | 10% to 15% |
| Several recent problems, or a DMP | 15% to 25% |
| IVA, debt relief order or bankruptcy in recent years | 15% to 30% or more |
| Repossession | Often 25% or more, if available |
These are typical starting points, not rules. Family help can make up the difference. See our gifted deposit guide.
What does a bad credit mortgage cost?
Specialist rates are usually higher than the best mainstream rates. How much higher depends on your risk tier and your loan-to-value. A bigger deposit lowers both.
Illustration only
On a £180,000 repayment mortgage over 25 years, a rate of 5.5% instead of 4.5% costs about £110 a month more. Over a two-year fix, that is around £2,640. Moving to a cheaper lender when your credit improves is how most people bring that cost down.
Many borrowers with credit problems take a two-year fix, keep their file clean, then remortgage once the problems are older. Check early repayment charges before committing so you are free to move. See today’s mortgage rates for the current market.
Our broker fee is £499 in total: £299 on application and £200 when a mortgage offer is issued. The £299 is fully refundable if the application is declined. The initial consultation is free.
How strict are lenders? A snapshot (criteria checked October 2026)
We checked the criteria a range of high street and specialist lenders publish for brokers on 16 and 17 October 2026. This is a summary. Each guide below has the full table and sources.
| Credit problem | Stricter high street rules we found | More flexible specialist rules we found | Full guide |
|---|---|---|---|
| Defaults | Small, satisfied and over 12 months old (Virgin Money, Skipton) | Up to 5 in 24 months (Precise), or none in the last 6 months (Kensington) | Defaults |
| CCJs | 1 satisfied CCJ up to £500 (Virgin Money, Skipton, Leeds) | Up to 3 in 24 months (Precise, Bluestone) | CCJs |
| Missed payments | None on a mortgage in the last 6 to 12 months | Some recent missed payments on specialist tiers | Missed payments |
| Debt management plan | Not while active, often not within 6 years (Virgin Money, TSB, Accord) | Active plan with 12 months’ history, max 85% LTV (Precise) | DMPs |
| IVA | 3 years after completion (Nationwide, Skipton) or 6 years (Virgin Money, TSB, Leeds) | More than 3 years on most tiers (Bluestone) | IVAs |
| Bankruptcy | 3 years after discharge (Nationwide, Skipton) or 6 years (Leeds, TSB) | More than 3 years on most tiers (Bluestone) | Bankruptcy |
| Repossession | 6 years, or never (Virgin Money) | 3 years on one specialist range (Vida) | Repossession |
| Payday loans | None in 2 years (Skipton) | Settled loans in the last 12 months (Together) | Payday loans |
Criteria change often and every lender also credit scores, so this shows where you might fit, not whether you will be accepted.
How do lenders view each credit problem?
Missed and late payments
The most common problem and the easiest to get past. Isolated late payments that are now up to date are accepted by many mainstream lenders after around a year. Missed mortgage or rent payments count most. Read our missed payments guide.
Defaults
Registered when a lender closes an account after several missed payments. Size, age and whether it is paid decide the lender list. Read our defaults guide.
CCJs
A court judgment for an unpaid debt. Paid within a month, it is removed from the register. Otherwise it stays six years. Satisfied, older and smaller CCJs open more doors. GOV.UK explains how CCJs affect your credit rating. Read our CCJ guide.
Debt management plans
An informal arrangement to pay creditors reduced amounts. The plan itself may not appear on your file, but the accounts in it usually show defaults or arrears. Some specialists lend during a well-run plan, more after it ends. Read our DMP guide.
Debt relief orders
A formal insolvency option for people with lower debts and few assets, lasting 12 months. GOV.UK sets out who can get a debt relief order. Specialist lenders may consider you once it has ended, often after a further period. Read our debt relief order guide.
IVAs
A formal agreement to repay part of your debts over several years. Most lenders want it completed, and some want a period since. Read our IVA guide.
Bankruptcy
Usually discharged after a year, but it stays on your file for six. Specialist lenders may consider you a few years after discharge. Read our discharged bankrupt guide.
Repossession
The most serious problem in lenders’ eyes. Options exist with a few specialists, usually several years later and with a large deposit. Read our repossession guide.
Payday loans
Many lenders decline applicants who have used payday loans recently, even if they were repaid on time. Others accept them after a period. Read our payday loans guide.
What if your situation is more complicated?
- Self-employed with bad credit: two sets of criteria to meet. See our self-employed bad credit guide.
- Buying with a partner who has bad credit: both credit files are checked. See our joint mortgage with bad credit guide.
- Already own a home: a product transfer may avoid a credit check. See remortgaging with bad credit.
- Thinking of consolidating debts: read debt consolidation and mortgages and remortgaging for debt consolidation first.
- Buy-to-let: see buy-to-let mortgages with bad credit.
How can you improve your chances in six to twelve months?
- Now: get your credit files from Experian, Equifax and TransUnion. Note every problem’s date, amount and status.
- Correct errors. Wrong dates, duplicate entries and debts marked unpaid when they are paid are common.
- Settle what you can, and make sure settled debts show as satisfied.
- Keep every account up to date. Set up direct debits. Each clean month counts.
- Register on the electoral roll and close accounts you do not use.
- Avoid new credit, payday loans and buy now pay later in the months before applying.
- Build your deposit. It is the most powerful lever you have.
- Speak to a broker before applying, so your first application goes to a lender that fits.
Frequently asked questions
Can I get a mortgage with bad credit?
Usually, yes. It depends on how serious and recent your credit problems are, whether they are settled, your deposit and affordability. Minor older problems are accepted by many mainstream lenders, and specialist lenders consider more serious ones.
How much deposit do I need with bad credit?
Typically 5% to 10% for minor older problems, 10% to 15% for a recent default or CCJ, and 15% to 30% or more after an IVA, debt relief order, bankruptcy or repossession.
Will I pay a higher interest rate?
If you need a specialist lender, usually yes. The gap depends on your risk tier and deposit. Many borrowers remortgage to a cheaper lender once their credit improves.
How long do credit problems stay on my file?
Most stay for six years, including late payments, defaults, CCJs, IVAs, bankruptcy and repossession. A CCJ paid in full within one month is removed.
Does checking my own credit file affect my score?
No. Checking your own file is a soft search that lenders cannot see.
Should I wait until my credit improves?
Sometimes. If your problems are very recent, waiting six to twelve months can mean more lenders and lower rates. If they are older, you may already qualify. Ask before deciding.
Can I get a mortgage if my partner has bad credit?
Yes. Lenders check both files. Depending on the problems, you may apply jointly with a specialist, or in some cases in one name.
Do I need a broker for a bad credit mortgage?
You do not have to use one, but many specialist lenders only accept applications through brokers, and choosing the right lender first time avoids unnecessary searches on your file.
Speak to Option Finance about a bad credit mortgage
Send us your credit files and tell us what happened. We will tell you straight which lenders would consider you now, what would change if you waited and what deposit you need, and we only apply where your case fits.
Book a free initial consultation using the enquiry form below. See our adverse credit mortgage advice, our guide to remortgaging with bad credit and the bad credit mortgage calculator.
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Written and reviewed by Davi Thakar
Director & Senior Mortgage Broker
CeMAP Qualified Mortgage and Protection Adviser
Davi founded Option Finance with a vision to deliver transparent mortgage advice from a wide panel of lenders. With over 10 years in financial services, he specialises in complex cases including adverse credit, self-employed borrowers with limited trading history, and large buy-to-let portfolios. He works directly on complex cases and explains each option clearly.
Meet Davi Thakar
