Bad Credit Mortgage Options in the UK
A patchy credit history doesn’t always mean a mortgage is out of reach — but it usually means a specialist lender and a higher rate. The age, type and pattern of the credit events matter more than the score.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Quick summary
- Specialist “adverse credit” lenders treat older, smaller and satisfied events more leniently.
- Defaults over 3 years old and under £500 are often ignored by mainstream lenders.
- A CCJ within the last 12 months usually pushes you to specialist lenders.
- A bigger deposit (often 15–25%) widens lender choice significantly.
- IVAs and bankruptcies typically need to be discharged and seasoned 3+ years.
What lenders may look at
- Age of credit event
- Size of default / CCJ
- Whether settled or unsatisfied
- Pattern (one-off vs repeated)
- Income and deposit
Documents you may need
- Full credit reports (Experian, Equifax, TransUnion)
- Evidence settled events are marked satisfied
- 3 months bank statements
- Income proof
- Statement of any IVA/bankruptcy + discharge
Common issues
- Errors on credit file — well worth fixing before applying.
- Multiple recent applications — leaves multiple hard searches and looks risky.
- Payday loans in the last 12 months — many lenders decline outright.
- Persistent overdraft use — flagged by underwriters.
Frequently asked questions
Can I get a mortgage with a default? +
Often yes — especially if it’s over 2 years old, under £500, or marked as satisfied. Many specialist lenders accept defaults far more freely than the high street.
What about a recent CCJ? +
A CCJ in the last 12 months usually means a specialist lender. After 3 years and if satisfied, many mainstream lenders will consider it.
Are bad credit mortgage rates much higher? +
Yes — typically 1–3% above prime. A bigger deposit and clean recent history can narrow the gap.
Can I get a mortgage during a DMP? +
A handful of specialist lenders consider applicants on a Debt Management Plan — usually with a substantial deposit and good rationale.
How long after bankruptcy can I apply? +
Usually 3+ years after discharge with most specialists; 6+ years for many high-street lenders.
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