Buy-to-Let Mortgages With Bad Credit

Yes, you can get a buy-to-let mortgage with bad credit, but how easily depends on what the problem was, how recent it is and whether it is settled. Older, smaller problems often matter less than people expect, because the loan rests mainly on the rent.

Buy-to-let lenders check your credit like any lender. But as long as the property’s numbers work and your recent record is clean, some are more relaxed about past problems than residential lenders. Recent or serious problems mean specialist lenders, higher rates and a bigger deposit.

For how buy-to-let lending works more widely, see our complete buy-to-let mortgage guide.

Can you get a buy-to-let mortgage with bad credit?

Often, yes. Late payments over a year old, or small defaults and CCJs that are settled, are accepted by many buy-to-let lenders. Recent problems, missed mortgage payments or insolvency narrow the choice to specialists, who usually want 25% to 35% deposit. The rent still has to pass the lender’s test.

How do lenders view each problem?

Credit problem	Typical buy-to-let lender view
Late payments over 12 months ago	Often accepted by mainstream buy-to-let lenders
Small, satisfied defaults or CCJs	Accepted by many specialists, some mainstream if older
Recent defaults or CCJs	Specialist lenders, larger deposit
Missed mortgage payments	Taken most seriously, especially on existing buy-to-lets
Active DMP	A small number of specialists
IVA or bankruptcy	Usually completed or discharged, often some years ago

The most recent problem counts most. Our bad credit mortgage guide explains each one in detail, and we have separate guides to mortgages with a CCJ and mortgages with a default.

Which situations do lenders see most?

These are illustrative situations, not Option Finance client outcomes.

How much deposit will you need?

• Minor, older problems: standard buy-to-let deposits, usually 25%.
• Recent defaults or CCJs: often 25% to 30%.
• Serious or recent insolvency: often 30% to 35% or more, if available.

Specialist rates are higher, and a higher rate makes the rental cover test harder to pass. That is why a bigger deposit helps twice: it lowers the rate and the loan the rent has to cover.

What documents will lenders ask for?

• Credit reports from all three agencies. You can get your statutory report free, as the ICO explains in its guide to your credit file.
• Proof that debts are settled, such as a certificate of satisfaction for a CCJ or a settled letter for a default.
• Discharge or completion evidence for a bankruptcy or IVA. You can check your entry on the bankruptcy and insolvency register.
• Proof of income, as many buy-to-let lenders want a minimum personal income.
• Rent evidence, usually a letting agent’s figure or a current tenancy.
• A property schedule if you already own rentals.

Can a limited company get round bad credit?

No. If you buy through a limited company, lenders credit check the directors and shareholders, so your personal history still counts. See our limited company buy-to-let guide.

Can you remortgage a buy-to-let with bad credit?

If you already have buy-to-let mortgages and your credit has worsened, a product transfer with your current lender may avoid a new credit check if you are up to date and not borrowing more. Moving lender means meeting their credit criteria. See our buy-to-let remortgage guide.

How can you improve your chances?

1. Get all three credit files and list every problem with its date and status.
2. Settle what you can and make sure it shows as satisfied.
3. Keep every account up to date, especially existing mortgages.
4. Choose a property with a strong yield, so the rental test has headroom.
5. Save a bigger deposit.
6. Apply where your case fits first time, to avoid unnecessary searches.

Frequently asked questions

Speak to Option Finance about bad credit buy-to-let

Send us your credit files and the property details. We will tell you straight which lenders are realistic, what deposit you need and whether the rent passes their test.

Book a free initial consultation using the enquiry form below. See our buy-to-let mortgage advice, our adverse credit advice and our guide to mortgages for discharged bankrupts.