What Deposit Do You Need for a Mortgage With Bad Credit in 2026?
- Jun 20
- 11 min read
With bad credit, your deposit is the lever that opens lenders and rates. Here is how much you need by the type and age of your credit issue, and what can count towards it.
Quick Answer
There is no single figure, but as a rough guide you should plan for around 15 percent with a historic, satisfied issue, 20 to 25 percent with a recent default or CCJ, and 30 percent or more where several recent problems sit together. The worse or more recent the credit issue, the larger the deposit a specialist lender wants, because the deposit is what offsets the extra risk. A bigger deposit does not just get you a yes; it widens the lender list and sharpens the rate. It is the one part of a bad-credit application you can most directly influence.
Reviewed by Ben Stephenson, FCA authorised (FRN 496907) · 25+ years' experience · 4.9★ on Google. Updated: 20 June 2026.
Who This Guide Is For
Best for buyers with a credit issue on file, such as a default, a CCJ or a spell of missed payments, who are working out how much deposit they realistically need and where it can come from. It is aimed at people now on a steady footing who can save or who have funds ready, rather than anyone still working through a current crisis, where the first step is different. If that is you, a conversation about steadying things first will serve you better than rushing an application.
Key Points
The deposit offsets the risk: the more recent or severe the issue, the more a lender wants down
A bigger deposit pays twice, widening the lender list and lowering the rate, not just winning approval
Most sources count, from savings to a gifted deposit, as long as the funds can be evidenced cleanly
Table of Contents
Why the deposit does the heavy lifting
When your credit is clean, a lender leans on the score and is happy with a small deposit. When there is a default or a CCJ on file, that reassurance is missing, and the deposit steps in to replace it. A larger deposit means the lender is risking less of its own money against the property, so a credit issue it would otherwise decline becomes one it can accept. In short, the deposit buys back the confidence the credit score has lost. The bigger the gap the score has left, the more deposit a lender asks for to fill it.
This is why two buyers with the very same default can get completely different answers. The one putting down 10 percent may be declined across the board, while the one putting down 25 percent has a choice of specialist lenders. Nothing about the credit history changed; the deposit did the talking. It is the single biggest lever you control on a bad-credit application. Income and the age of the issue matter too, but neither shifts the outcome as sharply as the cash you put down. That is unusual good news on a bad-credit case, because it puts real control back in your hands.
That makes the deposit the first thing worth getting right. Before worrying about which lender or what rate, it is worth knowing the figure your particular situation calls for, because that number shapes everything that follows, from the homes you can realistically offer on to the deals you will be shown. Get the deposit right and the rest of the process tends to fall into place around it. Almost every other question, from rate to lender choice, flows from that one number.
How much deposit you actually need
The honest answer is that it depends on the type, age and severity of the issue. A satisfied default from years ago barely moves the dial, while a CCJ from last month moves it a lot. The table sets out the rough deposit each common situation tends to call for. These are typical patterns rather than promises, and every lender draws its own line. Treat the figures as a starting point for a conversation, not a fixed price list.
Your credit position | Typical deposit you'll need |
Clean or near-prime | 5 to 10% (a standard level of risk) |
Historic, satisfied default | Around 15% (the issue is ageing off) |
Recent default or CCJ | 20 to 25% (offsets the recent risk) |
Several recent issues | 30 to 40% (the deposit carries the case) |
The graphic shows the same pattern as a ladder. The cleaner and older your history, the lower the rung you start on; the more recent or serious the issue, the higher you climb. It is a sliding scale, not a cliff edge, so even a modest improvement in your deposit can move you onto a better rung and a wider choice of lenders. Because it is a scale, there is almost always something you can do to improve your position, rather than simply waiting and hoping. Even saving for a few more months, or settling a small balance, can be enough to tip a borderline case over the line.
It is worth being realistic with the figure from the outset. Stretching to put down a little more, where you can, often unlocks a noticeably better deal, and it spares the disappointment of an offer accepted on a home you then cannot finance. Knowing your number early keeps your search grounded in what will actually complete. A broker can sanity-check your target before you start viewing, so the search and the budget line up. It is a short conversation that saves a lot of wasted viewings and the disappointment of an offer you cannot finance.
Case study: a recent CCJ and a 25 percent deposit
The following is an illustrative example, not a quote or a guaranteed outcome. A first-time buyer in the North West had a CCJ registered fourteen months earlier after a dispute with a former landlord, since satisfied. With a 10 percent deposit, two lenders had already declined him on the automated check, and he assumed home ownership was off the table for years. He had a stable job and a clean record since, but the marker alone was enough to stop the automated systems in their tracks.
He had been saving steadily and could reach a 25 percent deposit with a modest gift from a parent. That single change moved him from a near-impossible case to a workable one: with a quarter down, the lender's exposure dropped enough that a recent, satisfied CCJ became acceptable. He completed on a fair fixed rate. The deposit, not the passage of time, was what made the difference, and it is a pattern we see often once a buyer can get past the 20 percent mark. Crossing that line tends to open a tier of lenders who simply will not look at a smaller deposit on a recent issue. It is the classic gap between how a borrower looks to a person and how they look to a scorecard.
What can count as your deposit
A deposit does not have to be money you saved penny by penny. Lenders accept funds from several sources, provided each can be evidenced and the trail is clean. The graphic shows the common ones, and most buyers use a combination. Mixing two or three sources is completely normal and does not weaken an application in a lender's eyes. What matters is the evidence behind each part, not the number of parts.
Your own savings are the simplest. Equity from selling another property works the same way. A gifted deposit from a close family member is widely accepted, with a short letter confirming it is a gift and not a loan. A bonus, an inheritance or another windfall can also be used. Whatever the source, the lender wants to see where it came from, which is part of the standard anti-money-laundering checks rather than anything unusual to bad credit. A deposit made up of savings topped up by a family gift is one of the most common arrangements we see.
The one thing to plan for is the paper trail. Funds that appear suddenly with no history attached can slow a case down, so it helps to have statements showing savings building up, or a clear record of a sale or a gift. For more on how the money side is assessed, our guide to specialist mortgages sets out where a broker fits in. Getting this in order early is one of the simplest ways to keep a bad-credit application moving at pace. Lenders rarely object to where a deposit comes from; they object to not being able to trace it.
Why a bigger deposit changes the rate, not just the answer
It is tempting to think of the deposit as a simple pass-or-fail threshold, but it works on a sliding scale. Lenders price by loan-to-value, the share of the property you are borrowing. Put down more and you borrow a smaller share, which lowers the lender's risk and earns you a better rate. On a bad-credit case, where rates already sit above prime, that effect is even more valuable than usual. A point or two off the rate, compounded over a fixed term, can be worth far more than the extra deposit you put in. On a larger loan in particular, even a small rate gain turns into a meaningful sum each month.
So a larger deposit pays you back twice. First it widens the field, turning a decline into a choice of lenders. Then, among those lenders, it moves you onto a sharper rate and a lower monthly payment. Crossing a round-number threshold, from just under 25 percent to 25, can sometimes shift you into a whole new tier of pricing, so it is worth knowing where those lines fall. A broker will know the thresholds each lender uses, so you are not guessing at the edge of a band. Landing just over a threshold rather than just under it is often worth a little planning.
None of this means you should overstretch. Emptying every reserve to reach a threshold can leave you exposed if something unexpected comes up after completion. The aim is the sweet spot: a deposit large enough to unlock a sensible rate, while keeping a comfortable buffer behind you. A broker can show you where that point sits for your case. Keeping a few months of payments in reserve is rarely a mistake, even when it means putting down a fraction less. Lenders see a retained buffer as a sign of stability, not as a weaker deposit.
Building and positioning your deposit, step by step
If your deposit is not quite where it needs to be, a clear plan beats guesswork. The steps below are the ones that tend to move a bad-credit case from borderline to comfortable, in roughly the order they matter. None of it is complicated; it is mostly about doing the obvious things in the right sequence. Done in order, they turn a vague worry about the deposit into a clear, manageable plan.
Start by fixing the number. Work out the deposit your credit position calls for using the table above, then aim a little beyond it if you can, because the next rung up usually brings a better rate.
Tidy the credit alongside the saving. Settling a lingering default, or simply letting an issue age while you save, both improve the deposit-to-risk balance, so the two efforts compound.
Get the funds evidenced early. Pull together statements that show the deposit building, or paperwork for a gift or a sale, so the trail is ready before you apply and nothing stalls the case.
Then match it to the right lender. This is where a broker earns their keep, lining your exact deposit and credit profile up against the lender most likely to say yes at the best rate, rather than applying blind and risking a decline on your file. Every avoided decline also protects your credit file from another footprint, which matters on a case like this.
FAQs
How much deposit do I need for a mortgage with bad credit?
It depends on the type and age of the issue. As a rough guide, plan for around 15 percent with a historic, satisfied default, 20 to 25 percent with a recent default or CCJ, and 30 percent or more where several recent problems sit together. A broker can pin down the figure for your exact situation. The right figure can also vary by lender, which is one more reason comparing across a panel matters.
Can I get a bad credit mortgage with a 10 percent deposit?
Sometimes, but only where the issue is minor, old and satisfied. With anything recent, most specialist lenders want more down to offset the risk, so a 10 percent deposit narrows your options sharply. Stretching to 15 or 20 percent usually opens a much wider choice. It is often worth waiting a few months to build the deposit rather than applying early and collecting a decline.
Does a bigger deposit get me a better rate with bad credit?
Yes, often noticeably. Lenders price by loan-to-value, so a larger deposit means you borrow a smaller share and earn a lower rate. On a bad-credit case, where rates start higher, that saving is especially worth having, and crossing a threshold such as 25 percent can shift you into better pricing. The effect is strongest at the lower deposit levels, where each extra few percent makes the most difference.
Can my deposit be a gift from family if I have bad credit?
Usually yes. A gifted deposit from a close family member is widely accepted, with a short letter confirming it is a gift and not a loan. The lender will want to see where the funds came from as part of standard checks, but the bad credit itself does not stop you using a gift.
Do I need a bigger deposit for a recent default than an old one?
Yes. Age is one of the biggest factors. A satisfied default from several years ago may need only a slightly larger deposit than clean credit, while a default or CCJ from the last few months typically calls for 20 to 25 percent or more, because the deposit is doing the work of offsetting the recent risk. As the issue ages and is satisfied, the deposit a lender expects steadily falls back towards normal.
Summary
With bad credit, the deposit is the lever that decides both whether you are approved and at what rate. Plan for around 15 percent with a historic, satisfied issue, 20 to 25 percent with a recent default or CCJ, and 30 percent or more with several recent problems. Savings, equity, a gift or a windfall can all count, as long as the trail is clean. Put down a little more where you can, evidence it early, and match it to the right lender through a broker.
Updated: 20 June 2026
Written by Ben Stephenson, CeMAP-qualified Mortgage Broker.
Manor Mortgages Direct is FCA authorised, FRN 496907, has traded for 25 years, is highly positively reviewed, 4.9 rated on Google, and has helped thousands secure the right mortgage. Bristol-based mortgage brokers, assisting clients nationwide.
Sources
MoneyHelper, How much deposit do you need for a mortgage, https://www.moneyhelper.org.uk/en/homes/buying-a-home/how-much-deposit-do-you-need-for-a-mortgage, accessed 20 June 2026
GOV.UK, County Court Judgments (CCJs) for debt, https://www.gov.uk/county-court-judgments-ccj-for-debt, accessed 20 June 2026
Hero photo: New detached house for sale, Hitcham, England, by Michael Garlick, via Geograph / Wikimedia Commons, licensed CC BY-SA 2.0
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