Can I get a mortgage with bad credit?

What counts as bad or adverse credit?

Lenders use these terms for things like late or missed payments, defaults, county court judgments (CCJs), debt management plans, IVAs, past bankruptcy or arrears on a mortgage. Each one is treated differently, and how recent it is usually matters more than what it was.

Can I remortgage with bad credit?

Often yes. Some mainstream lenders accept minor or older issues, and specialist lenders may consider more recent or serious ones. Lenders also look at your equity, income, outgoings and how you have managed credit since. Approval is never guaranteed.

What lenders look at

Typically: the type of issue, when it happened, whether it is settled, the amounts involved, how much equity you have and whether the new payments are affordable. Having more equity can open up more options.

Will rates be higher?

They can be. Specialist lenders may charge higher rates or fees to reflect the risk. Compare the rate, every fee, any early repayment charges and the total amount repayable, not only the monthly payment.

Consolidating debt with adverse credit

Moving debts onto your mortgage or a second charge can lower monthly outgoings, but it secures those debts against your home and a longer term can increase the total you repay. If you are already struggling to keep up with payments, free help from MoneyHelper or StepChange may be more suitable than new borrowing.

Steps that can help before you apply

Check your credit file with the main credit reference agencies and correct any mistakes, make sure you are on the electoral roll, keep up current payments and avoid several credit applications in a short time. Have recent payslips or accounts and bank statements ready.

How we can help

We review your credit history, property, income and plans, then look at mainstream and specialist lenders that may consider you. We explain the fees, risks and total cost before you decide. An initial consultation is no obligation.

Common questions