Defaults (opens in a new tab)
The date, amount, number of defaults and whether they have been settled help an adviser assess the options.
Mortgage advice in the UK
Bad credit mortgages
Past credit problems can make a mortgage harder to arrange. Count Ready’s advisers can help you understand your options before you apply.
Your credit history, income, outgoings and deposit or equity all matter. Mortgage approval depends on your circumstances and the lender’s assessment.
Free initial consultation. Fees apply if you proceed with our mortgage service; these are agreed before chargeable work. Read about fees.
Your home may be repossessed if you do not keep up repayments on your mortgage.
A starting point
Can I get a mortgage with bad credit?
It may be possible to get a mortgage with bad credit in the UK. A lender will consider the type, timing and status of your credit problems alongside your income, spending, deposit or equity and the property. Some cases may fit a mainstream lender; others need specialist consideration. An individual assessment is essential.
What is a bad credit mortgage?
“Bad credit mortgage” and “adverse credit mortgage” describe borrowing where past credit problems affect the lender’s assessment. They are not a single product with a standard deposit, rate or acceptance rule. You may also see the older term subprime mortgage (opens in a new tab).
A mortgage is still a long-term commitment secured against your home. The priority is a suitable, affordable option, including whether it makes sense to apply at all.
Find the relevant guidance
What is on your credit history?
Choose the issue closest to your circumstances. If more than one applies, the adviser needs to consider them together; meeting one part of a lender’s policy is not enough on its own.
CCJs (opens in a new tab)
Have the County Court judgment (CCJ) details and any evidence of payment ready. A CCJ is assessed alongside the rest of your application.
Missed or late payments (opens in a new tab)
Which account was affected, how recently and whether payments are now up to date can all matter.
Debt management plans (opens in a new tab)
Explain whether your plan is ongoing or completed, the payments agreed and the debts still outstanding.
IVAs (opens in a new tab)
An ongoing individual voluntary arrangement (IVA) and a completed one raise different questions. Keep the dates and completion documents available.
Bankruptcy (opens in a new tab)
The bankruptcy and discharge dates, your circumstances since then and the lender’s policy need individual consideration.
Previous repossession (opens in a new tab)
An adviser will need to understand what happened, when it happened and whether any mortgage shortfall remains.
Debt relief orders (opens in a new tab)
Keep details of the order, its status and any remaining commitments so the adviser can review the full picture.
Affordability comes first
Deposit, borrowing and mortgage costs
How much deposit will I need?
There is no deposit percentage that works for everyone with bad credit. The lender, property and details of your credit history all affect what may be available.
A larger deposit reduces the share of the property’s value you need to borrow. It may broaden your options, but it cannot guarantee acceptance or make unaffordable repayments suitable.
If you own a home, the relevant starting point is its value and the borrowing secured against it. Keep funds available for fees and moving costs as well.
How much could I borrow?
A salary multiple is only a rough starting point. A lender assesses the income it will accept, your existing commitments, living costs, the mortgage term and whether repayments would remain affordable.
For self-employed applicants, the evidence and treatment of income can vary. A calculator cannot confirm how a lender will view your credit history.
Bring a realistic monthly budget to the conversation, including costs that do not appear on your credit report.
Will the interest rate be higher?
Credit problems can limit lender choice and may mean a higher rate or additional costs. The actual terms depend on the application and the deals available at the time.
Compare the payment, product fee, adviser fee, valuation and legal costs, plus any early repayment charge. Extending the term may reduce the monthly payment while increasing total interest.
A future remortgage or lower rate is not guaranteed. The mortgage needs to work on its current terms.
Buying, moving or remortgaging?
Your mortgage plans change the questions that need answering. Use the existing guides below for more specific help.
Buying your first home (opens in a new tab)
Review your deposit source, monthly budget and credit history before relying on a mortgage estimate or committing to a purchase.
Moving home
Check your current mortgage, any early repayment charge, the equity available and whether you need extra borrowing. Porting a mortgage (opens in a new tab) still involves lender checks; an existing deal does not guarantee a new application will be accepted.
Remortgaging with bad credit (opens in a new tab)
Compare moving to a new lender with any options from your current lender. The purpose of extra borrowing, fees, equity and repayment history all need review.
Applying when self-employed (opens in a new tab)
Your credit history and business income need to be considered together. Be ready to explain your trading structure, available accounts or tax evidence and any recent change in earnings.
Make the conversation useful
What should I prepare?
You do not need every document before requesting a callback. When available, these details help an adviser give a more informed assessment:
- Your credit reports: account details, dates and any entries you believe are incorrect.
- What happened: a short explanation of the credit problems and evidence of settlement, discharge or completion where relevant.
- Your income and spending: payslips or business records, regular bills, debt repayments and other commitments.
- Your deposit or equity: the amount, its source, and any existing mortgage balance.
- Your plans and timing: a purchase price or estimated property value, deal end date or previous lender feedback.
How to obtain your credit reports (opens in a new tab) · How long information stays on your credit file (opens in a new tab)
What happens when you speak to Count Ready?
Explain what you need
Tell us about your plans and the credit issues that worry you. We can discuss what information is needed to review the case.
Review the options and costs
The adviser considers your circumstances and relevant lender criteria. If an option appears suitable, you can discuss the recommendation, evidence, fees and next steps.
Decide whether to proceed
Any agreement in principle and full application involve further checks. The lender makes the decision; an initial discussion does not guarantee a mortgage offer.
You can also ask what needs to change before an application would be appropriate. There is no benefit in rushing towards a mortgage that does not fit your circumstances.
About the service
How Count Ready can help
Count Ready is a mortgage broker and protection adviser. We help you understand the choices available through our service and the information a lender needs to assess your application.
Advice is available by phone and online, with face-to-face appointments in some circumstances. We do not have branch offices throughout the UK.
Our Terms of Business explain the scope of our mortgage service, including that we do not cover deals available only by going directly to a lender. A broker’s recommendation remains subject to the lender’s assessment.
About our bad credit mortgage broker service (opens in a new tab) · About Count Ready (opens in a new tab)
Check the business before choosing advice: search the FCA Register (opens in a new tab) for Count Ready Limited, reference 976111. Our Terms of Business describe our appointed representative relationship with Connect IFA Limited.
Read Count Ready customer reviews on Google (opens in a new tab)
Bad credit mortgage questions
What credit score do I need for a mortgage?
There is no single consumer credit score that all UK mortgage lenders require. Scores from credit reference agencies are an indication, not a lending decision. Lenders also assess the information on your credit file, affordability, the property and their own criteria. A high score alone does not guarantee an offer.
Can a high income make up for bad credit?
A higher income may support affordability, but it does not remove a default, CCJ or other credit issue. A lender still needs to accept your credit history and be satisfied that the repayments are affordable after your commitments and living costs.
How long do I need to wait after a credit problem?
There is no waiting period that applies to every type of credit issue and every lender. The event, its date and status, and your circumstances since then all matter. How long an entry appears on a credit report is a separate question from whether a lender will accept your application. Answer the lender’s questions accurately, including about older events where asked.
Can I get a mortgage without a deposit if I have bad credit?
Do not assume that a no-deposit, family-assisted or shared-ownership arrangement will accept your credit history. Each has its own requirements and risks. Shared ownership can still require a deposit and involves rent and other costs as well as mortgage payments. Ask for an assessment of the particular scheme before relying on it.
Does an agreement in principle mean I have been accepted?
No. An agreement in principle gives an initial indication based on the information and checks used at that stage. A formal mortgage offer depends on the lender’s full assessment, including evidence and the property valuation. Ask whether any proposed credit search will be soft or hard before proceeding.
Should I apply now or improve my credit first?
Compare the options available now with what might realistically change if you wait, including your deposit, debts, housing costs and deadlines. Keeping up agreed payments and correcting report errors can help you prepare. Waiting does not guarantee acceptance or a cheaper mortgage, and a broker may advise that an application is not suitable at present.
Can I get a buy-to-let mortgage with bad credit?
It may be possible, but buy-to-let lending has different criteria from a mortgage for your own home. The lender may assess expected rent, your finances, landlord experience and credit history. A buy-to-let mortgage should not be used to get around the requirements for a home you intend to live in.
Your next step
Talk through your mortgage options
Request a callback and let us know whether you are buying, moving or reviewing an existing mortgage. A brief outline of your concern is enough to start.
Please keep account numbers and full credit-report details out of the callback message. Your adviser can explain how to provide supporting documents if needed.
A callback request is an enquiry, not a mortgage application or an offer of lending.
Free initial consultation. Fees for further mortgage work are agreed in advance; see fee information and our Terms of Business (opens in a new tab). Read our Privacy Policy (opens in a new tab).
Your home may be repossessed if you do not keep up repayments on your mortgage.