Bad Credit Mortgages

Getting a Mortgage with Bad Credit

Have you been denied a mortgage based on your credit history? Have you ever wondered how to get a mortgage with bad credit? Our aim at Just Mortgage Brokers is to make it easier for you to find a mortgage regardless of your credit score.

We understand that it can be difficult to find a lender willing to provide a mortgage in these circumstances, but with help from our specialist advisors, you can get access to a potential mortgage with minimum fuss.

Get started today with our bad credit mortgage calculator below.

Bad Credit Mortgage Calculator

Bad credit Mortgages

A bad credit mortgage is simply a term used to describe a mortgage arranged with a specialist lender for a borrower who has experienced financial difficulties in the past.  Typically, a bad credit mortgage for someone who has had debt problems will be offered at a slightly higher rate than that found from your usual high street lenders and may also require a slightly bigger deposit or a larger amount of equity.

In our experience however, it is not necessarily the case for everyone that, just because they have experienced problems in the past with their credit, they will need to go down the route of getting a bad credit mortgage from a specialist lender.  The market has evolved over the last few years and some mainstream lenders are now considering elements of adverse credit, and those eligible can still obtain standard interest rates.  Our expert advisers are fully qualified and following an initial discussion and sight of your credit report should be able to ascertain which route you may have available.

Bad credit mortgage rates

Interest rates offered for bad credit mortgages are invariably higher than that provided by your mainstream lenders due to the perceived additional risk for the lender.  Appetite for lending to those that have experienced credit problems however has increased over recent years and more mortgage providers have entered the market giving much greater choice.  In addition, many lenders have continued to review and improve their rates together with their criteria as the competition increases, and as such margins over the standard mortgage rates have decreased.

The interest rate offered will be determined by the severity of the credit history but, also other factors can be taken into consideration such as your loan to value (sometimes referred to your LTV and determined by the amount of deposit or equity you have).

Typically, due to the complexity of the pricing of bad credit mortgage rates, these are not widely advertised nor shown in best buy tables.  Much more research is therefore required which is where an experienced specialist mortgage advisor should be able to use their knowledge of the varying lenders criteria to source the most suited available product for you.

Bad Credit Mortgage lenders

Since the financial crisis in 2008 where mortgage providers heavily restricted the availability of their products to only those that had clean credit histories and big deposits or low loan to values, the growth of the specialist lender has steadily re-emerged.  A bad credit mortgage lender is a categorisation of a type of mortgage provider who specifically caters for those that have experienced financial difficulties in the past.  Due to the very nature of their existence their criteria and interest rates will be tailored to this sector of the market.

Whilst many mainstream lenders will either not have a set ruling for an applicant with bad credit or have this at a very restrictive level, a bad credit mortgage lender will set out their stall in specific detail of what they are happy to accept, including the type of the event, the amounts and the time frames of when it occurred.  A bad credit mortgage broker will be able to use their expertise and knowledge to match the suitable lenders to the potential borrower.

Can you get a mortgage with bad credit?

While it can be more difficult to secure a mortgage with a bad credit history, it’s certainly not impossible for all. Also, there are things you can do that could improve your chances of being accepted for a bad credit mortgage.

How to improve your credit for a mortgage:

  1. Consider doing these things now:
  • If you aren’t on the electoral roll, get registered.
  • Request copies of your credit report from the three main UK agencies.
  • Close any accounts you don’t use – e.g. store or credit cards.
  1. Next, do this:
  • When you get your credit reports, check that the information they contain is accurate. If anything is wrong, get in touch to get it corrected.
  • Make a list of all your sources of income and outgoings, so you understand how money flows into and out of your household. Use this to work out a realistic budget, and stick to it.
  1. Longer term actions:
  • If you’re struggling with your budget, look at the figures again – maybe you haven’t allocated enough for groceries (for example) or you forgot about something.
  • Open a savings account and put something into it every month – no matter how small a sum. When you have a little bit extra – such as your ‘free’ council tax months – put that money into your savings account.

Take a look at our in-depth guide for more guidance on how to boost your chances of being approved for a mortgage with bad credit. For further information on bad credit mortgages, contact our team of specialist brokers. They have a wealth of experience of securing mortgages for people with a history of bad credit and have access to exclusive deals you wouldn’t necessarily find on the high street.



The criteria for assessing a mortgage application will vary from lender to lender, and their approach to your application will differ according to the current level of perceived risk and the nature of your bad credit issue. Usually, you will need to approach a lender who specialises in mortgages for people with bad credit, but, with the mortgage market continually evolving, some mainstream lenders have been known to accept some elements of adverse credit and you may not need the services of a specialist lender.

As a general rule, the lesser the adverse credit event and the more time that has passed since it occured, then the more favourable a mortgage lender will be. For example, an uncleared CCJ within the last 12 months will be a far greater issue than a few missed payments on a store card three years ago.

However, the main deciding factor will be that, whatever your previous money problems, if you are able to show you are now on a firmer financial footing in the long term and have taken steps to improve your credit score, then you will stand a far better chance of being accepted.

We know that no two cases are the same, and that many applicants will be able to find mortgages at standard interest rates, despite financial issues in the past. Once we’ve gone over your individual circumstances and analysed where you currently stand, we’ll be able to recommend the best path to take to successfully obtain a mortgage on reasonable terms.

How Much Will a Bad Credit Mortgage Cost?

A mortgage with bad credit is usually more expensive because the lender will price their products accordingly in their assessment of risk. As well as potentially costing you more, you might find the amount they will consider affordable for you to borrow is less than some other lenders.

What Causes Bad Credit?

Technically, there’s not such a thing as a “bad credit” score. This is because credit scores are calculated in different ways by the UK’s credit reference agencies. Your score is not what will impact your final decision; it is the different information that makes up your credit file.

How Do You Know If You Have Bad Credit?

If you are being chased by debt collectors, or receiving letters from credit card companies, it will be clear that your credit history is not as strong as it could be. For some, however, the first real sign they have a bad credit rating is when they are declined a mortgage by a high-street lender. This may be a surprise if you have not had a long period of a credit history (or no credit history at all), but for others it may be less of a shock, simply because they may be aware of missed payments or any court actions in the past.

Can I remortgage with poor credit?

A poor credit score could be the result of many varying factors and not just simply a history of adverse credit.  Situations such as high levels of available credit where unused credit cards still remain open on record could affect someone’s score, and therefore could be easily rectified if needed.  So yes, it is certainly possible to remortgage with a low credit score however it is very much dependent on your own individual circumstances to be able to answer this question with clarity.

Even if at the time of looking to remortgage with a poor credit score you are unable to do so, with a little planning and expert advice you can hopefully work towards a position of being able to do so and perhaps even obtain a much better suited product at the time of need.

Bad Credit Mortgage Calculator

Many calculators are in existence today to assist you with varying aspects of the house buying or remortgage process.  These vary from indicating how much you may be able to borrow to how much stamp duty you may have to pay.  A bad credit mortgage calculator will help you understand your potential chances of securing a mortgage based on your circumstances and credit rating.  His can be of great use to begin your journey of looking into your possible options.

Bad credit mortgage calculators will ask relevant questions about you specifically so that your response is tailored to your personal situation.  Many will also ask for your credit score as provided by some of the more widely recognised credit reference agencies and as such it is advisable to have this to hand when inputting your details.

Bad credit mortgage advice

Finding yourself in the position of needing bad credit mortgage advice is not probably something that you had planned to do however, if you find yourself in this position you are certainly not alone and join a great number of people who contact us for exactly this.  With many search engines and best buy tables catering in the most part for those who fit the standard mould, these tend to be less applicable to those needing specialist advice.  Speaking to an adviser who is an expert in this sector and who will be able to use their knowledge of the varying lenders criteria, should assist in securing the most appropriate scheme for you.  This may even be on a rate provided by a standard high street mortgage provider from the outset but, where this is not possible and a more specialist rate is on offer, they can work on a plan to get you in a position to get in a more favourable position during your mortgage lifetime.  Contact us today for your free no obligation bad credit mortgage advice.

Bad Credit Mortgage brokers

At Just Mortgage Brokers we receive many enquiries from would be borrowers who find themselves in a position where they have had some credit difficulties in the past.  These are put in contact with one of our many bad credit mortgage advisors who are specifically trained in this area to ensure they are best place to give the most appropriate advice.

In general terms, a bad credit mortgage broker is a title given to an advisor who specialises in this area of the market and who specifically focuses on this to ensure they are knowledgeable in this sector. They will also have the ability to recognise when a bad credit mortgage is required or where a standard lender would still be available.

  • - Are you tied to high street lenders?
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  • - What do I need to get started?
  • - What does a bad credit score look like?
  • - How does bad credit affect you?
  • - Can I apply for a joint mortgage if my partner has bad credit?
  • - Can I refinance a mortgage with bad credit?
  • - Can a mortgage broker help with bad credit?
  • - Is it possible to remove bad credit from your record before seven years?
  • - Does marrying someone with bad credit give you bad credit?


Carl Shave

Carl has worked in financial services since leaving education and specifically the mortgage industry since 1993.   As a cofounder of Just Mortgage Brokers, he believes that good advice should be available to all, regardless of their circumstances.