Bad Credit Mortgages Explained
- May 31
- 9 min read
Updated: 19 hours ago
Find out which lenders still approve a mortgage with defaults, a CCJ or an IVA, and the deposit that makes the rate workable.
Quick Answer
Yes, you can usually get a mortgage with bad credit in the UK. Specialist lenders accept late payments, defaults, CCJs, IVAs and debt plans, judging how serious and recent the issue is, whether it is resolved, and how big your deposit is. Expect a deposit of around 10 to 25 percent and a rate a little above mainstream deals.
Reviewed by Ben Stephenson, FCA authorised (FRN 496907) · 25+ years' experience · 4.9★ on Google. Updated: 31 May 2026.
Who this guide is for
Best for buyers and homeowners with late payments, a default or CCJ, a satisfied IVA or an active debt plan, and for anyone turned down by a high-street lender who wants to know which specialist lenders still consider their file.
Key points
A mortgage is often still possible with adverse credit.
Lenders weigh severity, recency and resolution most.
A 10 to 25 percent deposit widens your options.
Table of contents
What lenders mean by bad credit
Bad credit, or adverse credit, is any history that suggests a borrower has struggled to keep up with credit commitments. It ranges from the minor, such as one late payment, to the serious, such as repossession or bankruptcy. Lenders do not treat it all the same. They build a picture from your credit file and bank statements, then decide how much risk the case carries and whether it fits their criteria.
It also helps to know that your credit score itself is not sent to lenders. Each lender scores your file against its own model, which is why one can decline an application that another approves on identical information. The goal is not a perfect score, it is finding the lender whose model is comfortable with your particular history.
The main types of adverse credit
Each marker is judged differently. The table below is a quick guide to how lenders tend to view the most common ones.
Credit issue | How lenders tend to treat it |
Late or missed payments | Often minor; a few, well explained, rarely block a mortgage. |
Defaults | Stay on file six years; weight falls sharply once satisfied and ageing. |
CCJs | Need the right lender; satisfied and older is far easier to place. |
IVA | Possible during and after, though most lenders want it completed. |
Debt management plan | Considered by specialists, usually with a larger deposit. |
Low or thin credit file | Not bad credit as such; fixed by building and evidencing history. |
For a full walk-through of any one of these, use the guides below. The most common starting points are late payments, defaults, an IVA and a debt management plan.
How lenders assess adverse credit
Specialist lenders weigh three things above all:
Severity. A single missed mobile bill is treated very differently from a recent default or a CCJ.
Recency. Problems from years ago carry far less weight than something in the last few months.
Resolution. A satisfied default or a completed plan reassures a lender far more than an active one.
On top of that they look at affordability, deposit size, and the story behind the adverse credit. A one-off life event that has since been put right is a much easier case than a pattern of ongoing missed payments, which is also why manual underwriting matters: a human can weigh context that an automated credit-score check simply rejects.
A typical case
A buyer with two missed credit-card payments eighteen months ago and a default that was satisfied a year back might be declined by a high-street lender on an automated check. With a 15 percent deposit, evidence the default is cleared, and a clean recent twelve months, several specialist lenders would consider the case at a rate only modestly above mainstream, with the option to remortgage onto a sharper deal once the markers age further.
How long does bad credit stay on your file?
Most adverse markers stay on your credit file for six years from the date they were registered. That covers defaults, CCJs, and the record of an IVA or bankruptcy. Late and missed payments show for six years too, but their effect fades far sooner. Lenders care less about the calendar than the pattern behind it: a satisfied default from five years ago barely registers, while a missed payment last month can carry real weight. Once an entry passes six years it should drop off, so it is worth checking your file has updated before you apply, as a stale entry can hold back an application that should now pass.
Specialist lenders versus the high street
Mainstream, high-street lenders run largely automated checks and tend to decline anything outside a narrow credit profile. Specialist lenders are built for the opposite: they expect some adverse credit, read the detail behind the score, and price for the risk rather than refusing it. Most are intermediary-only, so they do not deal with the public and can only be reached through a broker. The trade-off is that their rates start a little higher, but for many borrowers a specialist yes now, followed by a move to a sharper deal once the file recovers, beats waiting years for the high street to say yes.
Deposit, rates and what to expect
Expect terms a little tighter than on a clean-credit application. A deposit of 10 to 25 percent is common, and the larger it is, the more lenders will consider you and the better the rate tends to be. Rates usually sit above mainstream deals to reflect the added risk, though the gap is often smaller than people fear and narrows as the adverse credit ages. Many borrowers take a specialist deal now, let their file recover, and then remortgage onto a sharper rate once they qualify as near-prime.
The adverse-credit market has grown more competitive over the past couple of years. More lenders now publish clear criteria for defaults, CCJs and completed plans, several have trimmed the premium on minor or ageing issues, and the near-prime tier between adverse and mainstream has widened. The practical effect is that someone declined a year or two ago is often worth a fresh look today, particularly once the original issue has passed a lender's time threshold or been satisfied.
Bankruptcy, repossession and the serious end
At the more serious end sit bankruptcy, repossession and debt relief orders. These narrow your options the most, but they rarely close the door for good. Lenders in this space generally want the bankruptcy or order discharged, a clean record since, and a larger deposit to balance the risk, often 25 percent or more. Time matters here more than anywhere: the further you are from the event, and the stronger your recent history, the more lenders will look at you and the closer the rate moves toward the mainstream. A broker is close to essential for these cases, as only a handful of lenders consider them and each sets its own conditions.
Your options
Depending on where you stand, the usual routes are:
Adverse credit is also where a broker earns their keep. The lenders that accept defaults, CCJs or completed plans rarely deal with the public, each has its own quirks about how recent or how large an issue can be, and one wrong application leaves a hard search behind. A broker who places these cases knows which lender is comfortable with which marker, packages the evidence the way an underwriter wants to see it, and goes to a likely yes first to protect your file.
A specialist adverse-credit mortgage through a broker-only lender that prices for your situation.
A near-prime deal if your issues are minor or ageing and your finances are now stable.
Waiting and improving your score for a few months to reach a wider set of lenders.
A joint application where one partner has bad credit, structured to limit the impact.
A remortgage or product transfer if credit has slipped since you bought.
What to do, and when
If you are not quite mortgage-ready, a short plan usually beats rushing an application:
Now: pull your credit reports, fix any errors, and stop applying speculatively.
0 to 6 months: save toward a 10 to 25 percent deposit and keep every account up to date.
6 to 12 months: let recent issues age and gather proof that defaults or plans are resolved.
12 months plus: review whether you now qualify as near-prime and can switch to a better rate.
Adverse credit guides
Go straight to the guide that matches your situation.
Payment problems
Defaults, CCJs and insolvency
Credit score and history
Before you apply
Expert tips and common mistakes
Tips
Pull your own credit report from more than one agency before you apply, and fix any errors first.
Avoid scattering applications: multiple hard searches in a short window make things worse.
Save the largest deposit you reasonably can, since it does more for adverse-credit cases than anything else.
Keep evidence that issues are resolved, such as satisfied-default letters or plan completion certificates.
Common mistakes
Applying to a mainstream lender first, collecting a decline, and adding a hard search for nothing.
Assuming a single missed payment rules you out: it usually does not.
Closing old, well-managed credit accounts just before applying, which can shorten your history.
Hiding an issue and hoping it is missed: lenders will see it, and it costs you credibility.
Frequently asked questions
Can I get a mortgage with bad credit in the UK?
Often, yes. Specialist lenders consider late payments, defaults, CCJs, IVAs and debt plans. The answer depends on how serious and how recent the issue is, whether it is resolved, and how large your deposit is.
How long do I have to wait after a default or CCJ?
There is no single rule. Some lenders consider you straight away with a larger deposit, while others want the issue to be one, two or three years old. As it ages, more lenders and better rates become available.
Will I need a bigger deposit?
Usually. A deposit of 10 to 25 percent is common for adverse credit, and a larger deposit widens your choice of lenders and improves the rate you are offered.
Are interest rates higher with bad credit?
They can be, because fewer lenders compete and the risk is seen as greater. The premium is often smaller than expected and shrinks as your credit history recovers, at which point remortgaging onto a better rate is common.
Does a declined application hurt my credit score?
A hard search leaves a mark, and several in a short period can lower your score and worry lenders. This is why it pays to match your situation to a likely lender first rather than applying widely.
Can I remortgage if my credit has got worse since I bought?
Frequently, yes. Specialist lenders and, in some cases, a product transfer with your current lender can help. The right route depends on what has happened and how much equity you hold.
Can I get a mortgage the day a default drops off my file?
Often you do not need to wait that long. Many lenders will lend while a default is still showing, especially once it is satisfied and a year or two old. When it drops off after six years your options widen further, but waiting is rarely essential.
Does using a broker cost more than going direct?
Not in a way that usually outweighs the benefit. Many adverse-credit lenders work only through brokers, so a broker is often the only route to them, and matching your file to the right lender first avoids wasted applications and the hard searches that can cost you more later.
More guides on bad-credit mortgages
Summary
Bad credit narrows the field of lenders, it does not end the search. What matters most is how serious and how recent each issue is, whether it is resolved, and how big your deposit is. Match the exact marker to a specialist lender, present a clear and evidenced file, and a mortgage is usually achievable now, with a route to a better rate as your credit recovers.
Updated: 31 May 2026.
Written by Ben Stephenson, CeMAP-qualified mortgage broker, and reviewed by the Manor Mortgages team.
Manor Mortgages is FCA authorised (496907), has been trading for nearly 30 years and is rated 4.9 on Google. We are Bristol-based mortgage brokers and assist clients across the UK.