Bad credit mortgages explained
A bad credit mortgage is a mortgage for someone with problems on their credit file. Here is how lenders see defaults, CCJs and missed payments, how long they matter, and a checker for where you stand today.
Quick answer
You can often get a bad credit mortgage. What matters most is how recent the problem is, whether it has been paid off, and how you have managed credit since. A satisfied default from three years ago may only narrow the choice a little; a recent unsatisfied CCJ usually means a specialist lender and a bigger deposit.
Most problems stay on your credit file for six years, and the choice of lenders widens as they age.
Updated today
What lenders look at
- WhenHow long ago it was registered.
- PaidWhether it has been satisfied.
- SizeSmall amounts matter less.
- SinceA clean record afterwards.
A bad credit mortgage checker in Theo
Add what is on your credit file and Theo shows where you stand with lenders, the deposit you may need and when that improves. An adviser can then match your exact history to lenders, before any credit search.
Before you apply anywhere
- CheckGet your file from all three agencies.
- FixChallenge anything wrong.
- WaitAvoid lots of applications at once.
Had an IVA or DMP?
See when more lenders open up.
Where your history can put you
| Where you stand | Typical deposit |
|---|---|
| Many high street lenders may consider you | Often from 5% or 10% |
| Some high street and specialist lenders | Usually 10% to 15% |
| Specialist lenders | Usually 15% to 25%, at higher rates |
| Very few lenders yet | Often 25% or more |
Time is on your side
As problems age, more lenders consider you, often with a smaller deposit and lower rate.
Bad credit mortgage checker
Nothing here runs a credit search. Add up to two things from your credit file.
Your home may be repossessed if you do not keep up repayments on your mortgage.
What counts as bad credit
Lenders look at missed payments, defaults, County Court Judgments, debt management plans, IVAs, bankruptcy, repossessions and recent payday loans. A low score on a credit app is not the same thing: each lender scores you its own way, using your credit file from the agencies Experian, Equifax and TransUnion, plus what you tell them.
How lenders see it
For a bad credit mortgage, recency matters most: something in the last year is treated very differently from something three years ago. Satisfied defaults and CCJs, meaning paid off, are viewed better than unsatisfied ones, and small amounts, under about £500, often matter less. Missed mortgage or rent payments are looked at most closely. A clean record since the problem helps, and so does a bigger deposit.
Does your credit score affect a mortgage?
Indirectly. Lenders do not use the score you see in an app; they use their own scoring and your full credit file. But the things that lower an app score, such as missed payments, high card balances and lots of recent applications, also count against you with lenders. A fair score does not stop you getting a mortgage; it may just narrow the choice.
How to improve your chances
Get your statutory credit report from all three agencies and challenge anything wrong. Register to vote at your address. Keep every payment on time from now on and bring card balances down. Avoid several applications at once, because each full search shows on your file. An adviser can check which lenders fit before any search is run.
Specialist lenders and advisers
Many lenders that consider recent credit problems only accept applications through brokers. Rates are usually higher at first, and many people remortgage to a mainstream deal once the problem ages. Your home may be repossessed if you do not keep up repayments on your mortgage. If you are struggling with debt now, MoneyHelper (moneyhelper.org.uk) can point you to free advice. See mortgages after an IVA or DMP.
Common questions
Can I get a mortgage with bad credit?
How long does a default stay on my credit file?
Can I get a mortgage with a CCJ?
Does my credit score affect getting a mortgage?
Will checking where I stand affect my credit file?
Keep exploring
Theo App Ltd is not authorised by the Financial Conduct Authority and does not give mortgage advice. This page is information only and is not a recommendation. A general guide, not a decision or an offer. Your home may be repossessed if you do not keep up repayments on your mortgage. Speak to an FCA-authorised mortgage adviser about your own circumstances.
Your home may be repossessed if you do not keep up repayments on your mortgage.