Bad Credit Mortgages

Last edited on: 6th February 2019.

Finding You 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.

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How to Get a Bad Credit Mortgage

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 mortgage with bad credit. Let’s take a look, starting with the basics.

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.

2. 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.

3. 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.

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 issues have an impact on cost?

Lenders take a number of issues into account, including:

  • The type and number of adverse credit events on your credit report: some have a bigger impact than others. For example, a lender might not be too concerned if you occasionally paid your mobile bill late, whereas if you have defaulted on a mortgage, that will be viewed as a more serious issue.
  • How old adverse events are: credit information stays on your file for six years; generally speaking, the older the events are, the less impact they will have.
  • Whether old debts have been settled.
  • The LTV of the mortgage: this is a measure of security for the lender. If they lend, say, 70% of the value of the property rather than 90%, should something happen to prevent you keeping up your payments, they have a better chance of getting their money back.

A lender will look at the big picture shown by all the information you provide and make a decision based on the overall strength of the application. As well as the above, this can include issues like whether you’re on the electoral register, how often you’ve moved house or changed your job, and how much debt you have in relation to your income.

So, what will it cost me to get a mortgage with bad credit?

For a general idea of your chances of being approved for a bad credit mortgage, try our Bad Credit Calculator. Bear in mind, however, that this simply provides an estimate, not an offer. For advice tailored to your unique circumstances, speak to one of our experienced bad credit mortgage brokers. An initial enquiry costs nothing, but could save you money.

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.

Here are some key contributors to a ‘bad’ score:

  • Not being registered on the electoral roll
  • Any previous court records such as CCJs, IVAs and bankruptcies
  • Previous history of missed payments/defaults
  • Wrong previous addresses on credit report
  • Frequent credit applications, especially declined ones
  • How much you owe and what you are currently repaying
  • Any payday loan information

You can take steps to improve your own credit score, which will make getting a mortgage easier, but not all lenders will use this data in the same way. Your circumstances will be viewed and dealt with differently by each lender, but one of our experts can help you find the best potential mortgage for you credit history and help walk you through the steps to look to get this arranged.

Black marks on your credit history:

But it is often not as bad as you think – those people who have had credit issues in the past could still get a mortgage, and we specialise in helping clients who have almost given up hope.

Find out if you can get a mortgage

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.

How Bad Is My Credit Score?

In the UK, most people have three credit scores, one from each of the credit reference agencies – Experian, Callcredit and Equifax – who collect data on people’s financial behaviour. Lenders will access one or more of these agencies when conducting a credit check.  Do note, however, that a lender will use its own assessment of your credit rating rather than that given by any of the agencies.

There is no easy way to compare scores and no simple answer to the question of where someone sits overall with regard to credit rating. Add to that the fact that different lenders interpret data differently and you can see the problem.

However, as a broad guideline:

Experian generates a score from 0–999 and breaks results down into five categories, as follows:

Experian ScoreValue
0 – 560Very Poor
561 – 720Poor
721 – 880Fair
881 – 960Good
961 – 999Excellent

Callcredit will generate a credit score out of a possible 710, and use the score to calculate a rating from 1 to 5:

Call Credit RatingValue
1Very Poor

Equifax generates a score out of 700 and breaks results down into five categories, as follows:

Equifax ScoreValue
0 – 279Very Poor
280 – 379Poor
380 – 419Fair
420 – 465Good
466 – 700Excellent


How Do You Get Your Credit Report?

Being able to obtain your own credit report has never been easier, and we would always strongly advise people to take a proactive approach to this, especially when they are looking to get a mortgage and are concerned they may struggle to gain credit.

If you haven’t already, take a look at one of our preferred choices, or if you want more information on the content of your credit report, we have a definitive guide which should give you what you need.

What is my credit rating?

How We Can Help

At Just Mortgage Brokers, we work with several lenders who specialise in bad credit mortgages. We will help match you with the right lender, take care of the application itself and advise you on anything else you can do to make your application successful.

What Else Can I Do to Secure a Mortgage?

The best thing you can do is help show you are less of a risk to lenders. Having existing debts is not necessarily a bad thing, provided you are able to demonstrate your ability to continue to pay the monthly payments due in the future.

The next step is getting in touch with one of our team. Do not be put off by any possible negative previous experiences with other brokers or high-street lenders; we have a wealth of experience in dealing with mortgage lenders who are more sympathetic towards our clients, who may have experienced credit issues in the past. We maintain excellent relationships with these lenders to give you the best possible chance of obtaining a mortgage with bad credit.

  • - Are you tied to high street lenders?
  • - Do overdrafts make credit scores worse?
  • - 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.