Can You Get a Mortgage With Poor Credit? | Full UK Guide 2025
- Ricky Gandhi
- 17 minutes ago
- 4 min read
Many people believe that a poor credit score automatically stops them from getting a mortgage in the UK. It’s a common misconception — and thankfully, not true. While a low score may make the process more challenging, it doesn't close the door on homeownership entirely.
Whether you’ve had defaults, CCJs, missed payments, or simply a thin credit file, you can still get a mortgage with a poor credit score. You just need the right preparation, the right lender, and the right guidance.
This guide explains everything you need to know — in clear, UK-focused English — so you can approach your application with confidence.
Can You Actually Get a Mortgage With Poor Credit?
Yes, many specialist lenders in the UK offer mortgages to borrowers with poor credit. High-street banks tend to have strict rules, but specialist lenders assess your full circumstances instead of relying on a single credit score.
They look at:
How severe your credit issues are
How long ago did they happen
Your income and affordability
The size of your deposit
Whether the issues were one-off or consistent
So even if your credit score is classed as “poor,” your overall profile may still meet lending criteria.
What Counts as Poor Credit in the UK?
Each UK credit agency uses different scoring ranges:
Agency | Poor Score Range |
Experian | 561–720 (poor) |
Equifax | 0–438 |
TransUnion | 0–550 |
But lenders care more about your report, not the number. They check:
Defaults
CCJs
Missed payments
Debt management plans
IVAs and bankruptcy
Repossession
High credit utilisation
Number of recent credit checks
If any of these appear on your file, lenders will treat you as higher risk.
Types of Credit Issues & How They Affect Your Application
1. Missed or Late Payments
These are the mildest issues. Usually not a problem if:
They’re over 12 months old
They’re small
You’re up to date now
2. Defaults
A default is more serious, but still acceptable to many lenders — especially if:
It’s older than 2–3 years
It’s been settled
You don’t have multiple recent defaults
3. CCJs (County Court Judgements)
More severe. Some lenders may accept you if:
Your CCJ is over 12–24 months old
You’ve paid it
The amount was small
4. IVA or Debt Management Plan
Mortgage still possible, but you’ll need:
A larger deposit
A specialist lender
Evidence of reliable repayment
5. Bankruptcy
You’ll usually need:
At least 12 months discharged
Several years of strong financial behaviour
6. Repossession
The most serious mark. Some lenders require 6 years to pass, but options still exist.
How Much Deposit Do You Need With Poor Credit?
Generally:
Minor issues (old missed payments): 5–10% deposit
Moderate issues (defaults/CCJs): 15–25% deposit
Severe issues (recent CCJ/IVA): 25–35% deposit
The bigger your deposit, the better your chances — and the lower your interest rate.
What Mortgage Options Are Available With Poor Credit?
You still have several choices:
1. Specialist Bad Credit Mortgages
Designed specifically for borrowers with poor credit.
2. Guarantor Mortgages
A family member guarantees your repayments, increasing approval chances.
3. Joint Mortgages
A partner or family member’s strong credit file can help balance yours.
4. Right to Buy Mortgages
The discount can act as your deposit — useful if your credit is poor.
5. Shared Ownership Mortgages
Buy a percentage of the home to reduce upfront costs and deposit size.
How to Improve Your Chances of Getting a Mortgage With Poor Credit
1. Check your credit file with all three agencies
Look for mistakes or outdated information.
2. Pay off or reduce outstanding debt
Small balances and old defaults can sometimes be settled for less than expected.
3. Register on the electoral roll
A quick, often overlooked score boost.
4. Keep credit utilisation under 30%
High use = high risk in lenders’ eyes.
5. Avoid payday loans
Many lenders consider them red flags — even if repaid.
6. Save a larger deposit
A big deposit fixes a lot of credit issues.
7. Use a mortgage broker who specialises in bad credit
They know which lenders accept which types of issues — saving you time, money, and rejections.
What Interest Rates Should You Expect?
Interest rates for a mortgage with a poor credit score are generally higher because lenders take on more risk.
Approximate expectations:
5–10% deposit: higher rates, limited lenders
15% deposit: more choice
25%+ deposit: close to standard rates
Once you’ve built a consistent payment history, you can remortgage to a cheaper deal.
When Should You Apply for a Mortgage If You Have Poor Credit?
You should consider applying if:
Your issues are older than 12 months
You’ve been financially stable for at least a year
Your debts are under control
You have a realistic deposit saved
If your issues are very recent (last 3–6 months), waiting a little longer can dramatically improve your chances.
Can you get a mortgage with poor credit in the UK?
Yes. Many UK specialist lenders offer mortgages to people with poor credit, including those with defaults, CCJs, missed payments, or past debt issues. You’ll usually need a larger deposit and may pay a higher interest rate, but approval is still achievable.
FAQs
Can I get a mortgage with a default?
Yes — especially if the default is older than 2–3 years or has been settled.
Can I get a mortgage after bankruptcy?
Yes. Many lenders consider you 12 months after discharge, depending on your circumstances.
Will a guarantor improve my chances?
Yes — guarantor mortgages can significantly increase approval likelihood.
Does paying off old debts help?
Absolutely. Clearing defaults or CCJs can improve both your score and your lender appeal.
At 1CMS, we understand that life doesn’t always run smoothly. A few financial bumps shouldn’t stop you from owning a home. If you’re unsure where you stand or want personalised guidance, we’re here to help.
👉 Get in touch with 1CMS today for friendly, expert mortgage advice — even if your credit isn’t perfect.
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